Key Highlights

• First-time Revenue Generation: The Group has, for the first time, recorded revenue of approximately RMB131.5 million in 2025, up from nil in 2024. This revenue was generated following the commercialization of Efsubaglutide Alfa, the company’s core product for the treatment of type 2 diabetes in China and Macau.
• Significant Increase in Net Loss: Despite the notable revenue, the Group expects to post a substantial net loss of approximately RMB341.4 million for 2025, nearly double the loss of RMB174.7 million recorded in 2024.
• Major Cost Increases:
  • Research and Development (R&D) Expenses: R&D spending surged by about RMB103.3 million, driven by higher expenditure on raw materials, pre-clinical studies, clinical trials, and process optimization. These costs are linked to the lifecycle management and further clinical development of Efsubaglutide Alfa, including a Phase IIb/III trial for obesity and overweight in China, and a Phase II study in Australia.
  • Selling and Distribution Expenses: Selling and distribution costs rose by approximately RMB174.3 million. This increase is primarily due to intensified marketing and promotional activities following the product’s commercialization, and higher employee benefit expenses from expanded sales personnel.
• Unaudited Preliminary Figures: The information provided is based on unaudited consolidated management accounts and may be subject to adjustments. The company’s external auditor and audit committee have not yet reviewed these figures.
• Further Announcements Pending: The audited results for the year are expected to be announced on 23 March 2026.

Implications for Shareholders and Investors

• Potential Share Price Sensitivity: The substantial net loss, despite the commencement of product sales, may impact investor sentiment and share price. The significant increase in operational expenses, especially relating to R&D and sales, could trigger concerns about profitability in the near term.
• Growth Prospects vs. Profitability: While the company has made a key transition to revenue generation through the commercialization of its core product, the heavy investment in ongoing clinical development and market expansion suggests that short-term profitability may remain under pressure.
• Caution Advised: The company has explicitly advised shareholders and potential investors to exercise caution when dealing in its shares, given the possibility of further adjustments to the financial results.

Board Statement

The announcement was approved by Dr. Wang Qinghua, Chairman of the Board. As of the announcement date, the Board comprises a mix of executive, non-executive, and independent non-executive directors, reflecting a broad governance structure.

What to Watch Next

Investors should closely monitor the company’s official audited results announcement, expected on 23 March 2026, for any changes to these preliminary figures and for further strategic updates regarding the commercialization and development of Efsubaglutide Alfa.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. All financial figures mentioned are based on preliminary unaudited accounts and may be subject to change. Investors should conduct their own due diligence and consult professional advisors before making investment decisions.

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