• In the first half of fiscal year 2025, revenue was 0.3719 billion yuan, up 36.2% year-on-year
• Gross profit for the first half of fiscal year 2025 was RMB 0.3073 billion, up 39.1% year on year; gross margin for the first half of fiscal year 2025 increased to 82.6% from 80.9% in the same period last year
• Total operating expenses for the first half of fiscal year 2025 fell 31.6% year on year to RMB 0.2764 billion
• Net profit of RMB 20.58 million and non-GAAP net profit of RMB 30.45 million were recorded in the first half of fiscal year 2025; while net loss of RMB 0.1745 billion (under GAAP and non-GAAP) was recorded for the same period in 2024

BEIJING, December 20, 2024/PRNewswire/ -- Lakeshore Biopharmaceutical Co., Ltd. (NASDAQ: LSB) (“Lakeshore Biotech” or the “Company”), a global biopharmaceutical company dedicated to the discovery, development, manufacture and delivery of next-generation vaccines and therapeutic biological products to address infectious diseases and cancers, today announced financial results for the first half of fiscal year 2025 (“FY2025H1"), ending September 30, 2024.

“We are very excited about the outstanding results achieved by Lakeshore Biotech in the first half of fiscal year 2025 under the new management team,” said CEO Wang Xu. Despite problems such as China's macroeconomic challenges, increased industry competition, and former chairman Zhang Yi's attempt to maliciously disrupt the normal operation of the company, we not only overcame these difficulties, but also achieved a net profit of 20.58 million yuan. This is the first time the company has been profitable since 2013, and it is a historic breakthrough. Furthermore, the company's revenue growth rate of 36.2% in the first half of fiscal year 2025 far exceeded the industry average.”

Mr. Wang Xu continued, “Turning our financial losses into profits proves the company's successful strategy to improve operational efficiency and profitability, as well as our efficient execution in reducing costs, restructuring, strengthening internal controls, optimizing resource allocation, and cash flow management. Looking ahead, we remain committed to our development strategy, which aims to maximize the value of our existing product portfolio and drive new business development to prepare for steady financial growth in FY2025 and beyond, thereby protecting and enhancing value for shareholders.”

Business updates

YSJA rabies vaccine simple four-dose regimen phase III clinical trial approved

On October 25, 2024, the company obtained approval from China's National Drug Administration (NMPA) to conduct a phase III clinical trial to evaluate the immunogenicity and safety of its YSJA rabies vaccine simple four-dose regimen. The trial began at the end of December 2024 and will recruit 2,380 participants. It is planned to compare the immunogenicity and safety of the YSJA rabies vaccine in two different four-dose regimens with the existing ESSEN protocol (1-1-1-1). This randomized, double-blind, controlled study is expected to end in the third quarter of 2025.

This clinical trial aims to strengthen the competitiveness of the YSJA rabies vaccine in the rapidly growing rabies vaccine market, demonstrate its clinical superiority, and gain wider recognition and support from hospitals, academic institutions and industry participants in China and around the world.

Financial results for the first half of fiscal year 2025

Operating income

Revenue reached 0.3719 billion yuan, up 36.2% year over year compared with 0.2731 billion yuan in the same period of fiscal year 2024. This increase was mainly driven by higher sales volume, due to increased batch issuance and increased volume available for sale, as well as more targeted and effective marketing initiatives.

gross profit

Gross profit was RMB 0.3073 billion, and gross margin was 82.6%, while gross profit for the same period of fiscal year 2024 was RMB 0.2209 billion, and gross margin was 80.9%; the main reason for the increase in gross margin was the reduction in unit production costs.

Sales and marketing expenses

Total sales and marketing expenses amounted to RMB 0.1371 billion, a decrease of 13.1% compared to RMB 0.1577 billion in the same period of fiscal year 2024. This reduction is due to cost reduction initiatives in the first half of fiscal year 2025.

Management costs

Management expenses were 70.81 million yuan, up from 67.61 million yuan in the same period of fiscal year 2024; this increase was mainly due to increased costs associated with layoffs.

R&D expenses

R&D expenses were 68.49 million yuan, a year-on-year decrease of 61.7% compared to 0.1789 billion yuan in the same period of fiscal year 2024; the main reason for this decline was the decline in testing fees, clinical trial fees, and consulting services after clinical research on the COVID-19 vaccine was completed.

Profit before interest, tax, depreciation and amortization, operating profit, net profit and net profit under non-GAAP

Profit before interest, tax, depreciation and amortization (“EBITDA”) was RMB 53.78 million, compared with a loss of RMB 0.1386 billion for the same period of fiscal year 2024; operating profit was RMB 30.86 million, compared with a loss of RMB 0.1833 billion for the same period in fiscal year 2024; net profit was RMB 20.58 million, and net profit without GAAP was RMB 30.45 million, as recorded in the same period of fiscal year 2024 (under GAAP) Net loss (under non-GAAP) of RMB 0.1745 billion.

balance sheet

As of September 30, 2024, the company's cash and cash equivalents were RMB 0.1125 billion. As of March 31, 2024, the company's cash and cash equivalents were RMB 0.2466 billion.

(Note: For detailed financial data, please refer to https://www.sec.gov/Archives/edgar/data/1946399/000121390024110338/ea022531601ex99-1_lakeshore.htm)

FY2025 Financial Guidance Update

The company expects revenue for the 2025 fiscal year to be between RMB 0.665 billion and RMB 0.7 billion, with an annual growth rate of 16% to 22%. Profit before interest, tax, depreciation and amortization is expected to be between RMB 7,600 and RMB 89 million. The above forecast reflects the company's positive outlook for the 2025 fiscal year and will also lay an important foundation for the 2026 fiscal year.