CStone Pharmaceuticals (2616.HK) Q2 2025 Earnings Report

CStone Pharmaceuticals reported QQ2 2025 revenue of 24.7255 million CNY with a pronounced gross loss of 46.3950 million CNY and a continued heavy investment emphasis on R&D. The quarter delivers an EBITDA of -133.1025 million CNY and a net income of -135.0915 million CNY, resulting in a net margin of -5.46% on a reported basis. YoY comparisons show material deterioration across key profitability metrics (revenue -67.69%, gross profit -236.21%, operating income -170.60%, net income -152.73%, and EPS -138.66%), while QoQ changes are flat for the quarter (qoq 0.00%). The company maintains liquidity with a current ratio of 1.441 and cash per share of 0.536 CNY, but exhibits a relatively modest cash conversion cycle and meaningful leverage (debt ratio 0.328 and debt/equity 1.242). Cash burn is driven largely by sustained R&D outlays (R&D expense of 52.5830 million CNY) and substantial selling/general/admin expenditures (combined 39.6 million CNY in the SG&A umbrella). With no explicit quarterly forward guidance disclosed, the near-term profitability hinges on pipeline progress, potential collaboration/licensing deals, and the ability to optimize R&D spend. In this context, the QQ2 outcome underscores the structural challenge facing early-stage biotech players: continued investment ahead of material revenue generation, balanced by meaningful clinical catalysts and strategic partnerships.