Hengrui Pharma Q3 revenue increased by 12.7% year-on-year, and net profit increased by 9.5% year-on-year | Financial Report Insights

On October 27th, Hengrui Pharma released its Q3 2025 report. The financial report shows that the company achieved growth in both revenue and profit in the third quarter.

• Q3 single-quarter revenue was 7.427 billion yuan, a year-on-year increase of 12.72%.

• The revenue for the first three quarters was 23.188 billion yuan, a year-on-year increase of 14.85%.

• Q3 single-quarter net profit was 1.3 billion yuan, a year-on-year increase of 9.53%.

• The net profit attributable to shareholders of the listed company for the first three quarters was 5.751 billion yuan, a year-on-year increase of 24.50%.

Q3 Growth Rate Lower Than the First Three Quarters

The Q3 single-quarter revenue growth rate of 12.72% is significantly lower than the overall growth rate of 14.85% for the first three quarters, indicating that the growth in Q1-Q2 was stronger, while there are signs of a slowdown in the third quarter.

From the profit side, the Q3 single-quarter net profit attributable to the parent company was 1.301 billion yuan, a year-on-year increase of 9.53%, which is also lower than the overall level of 24.50% for the first three quarters. More notably, the Q3 single-quarter net profit after deducting non-recurring items was 1.317 billion yuan, a year-on-year increase of 16.89%.

The most striking data in the financial report is undoubtedly the surge in contract liabilities from 160 million yuan at the beginning of the year to 3.971 billion yuan at the end of the period, an increase of over 3.8 billion yuan in a single quarter. The company clearly stated in the cash flow statement notes that this mainly comes from the "increase in cash received from overseas licensing upfront payments."

In terms of expenses, the sales expenses for the first three quarters were 6.780 billion yuan, accounting for 29.24% of revenue. Although the year-on-year growth rate of 10.99% is lower than the revenue growth rate, the absolute proportion remains high. Management expenses were 2.127 billion yuan, a year-on-year increase of 13.48%, with a growth rate higher than revenue. Financial expenses were negative 333 million yuan, mainly from interest income of 497 million yuan, benefiting from ample cash reserves.

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