Fusen Pharmaceutical (1652.HK) Q1 2025 Earnings Report

Fusen Pharmaceutical reported QQ1 2025 results that underscore a challenging near-term revenue trajectory with material profitability pressure, despite a relatively healthy gross margin. Revenue reached 55.643 million CNY in Q1 2025, down 43.31% year over year and 14.20% quarter over quarter versus the prior quarter. Gross profit was 21.495 million CNY, yielding a gross margin of 38.63%, but the company posted an operating loss of 10.097 million CNY and a net loss of 11.568 million CNY. EBITDA registered a negative 1.429 million CNY, with depreciation and amortization of 8.669 million CNY, signaling ongoing investment in fixed assets or intangible capitalization that has yet to translate into earnings power.

Key drivers of the quarterly results include a lean revenue base in a competitive PRC pharmaceutical market and a cost structure that, while disciplined, remains insufficient to offset the top-line shortfall. R&D expenditure stood at 7.4415 million CNY, with SG&A implied at 22.6655 million CNY, contributing to elevated operating costs relative to revenue. The quarter’s earnings metrics show a negative but improving trajectory on a year-over-year basis for operating income (+44.73% YoY) and net income (+37.37% YoY), yet both remain negative in absolute terms. The earnings per share stood at -0.0156 CNY, with YoY and QoQ improvements reflecting disease-treatment portfolio progress but not yet delivering earnings turnaround.

From a broader perspective, the QQ1 2025 results suggest the company remains in an investment-heavy phase, prioritizing portfolio development, product launches, or line extensions in a competitive Chinese market. The lack of disclosed cash flow and balance sheet specifics in the data provided limits a full view of liquidity and financial flexibility; however, the current period’s losses imply that operational leverage and financing comfort will be critical focus areas for management as the year progresses.