MEDTIDE (03880) announces good profit growth, expecting adjusted annual net profit of around 200 million to 230 million yuan, an increase of about 16.3% to 33.7% year-on-year.

MEDTIDE (03880) announced that the expected revenue of the group for the year ending December 31, 2025 is approximately RMB 555 million to RMB 585 million, an increase of about 25.5% to 32.3% compared to the revenue of approximately RMB 442 million for the year ending December 31, 2024. The expected profit for the year ending December 31, 2025 is approximately RMB 200 million to RMB 230 million, an increase of about 237.8% to 288.5% compared to the profit of approximately RMB 59.20 million for the year ending December 31, 2024. Additionally, the expected adjusted net profit (non-International Financial Reporting Standards measurement) for the year ending December 31, 2025 is approximately RMB 200 million to RMB 230 million, an increase of about 16.3% to 33.7% compared to the adjusted net profit of approximately RMB 172 million for the year ending December 31, 2024. The announcement attributed the revenue growth to the successful implementation of the "follow molecule" strategy, the advantages of the group's integrated contract research, development, and manufacturing organization (CRDMO) platform, industry-leading project timeliness and excellent project execution record, as well as strong demand from key customers for our services, driven by the advancement of its research and development pipeline and the rapid expansion of the global peptide market, particularly in the glucagon-like peptide-1 (GLP-1) field. The profit growth is mainly due to the combined impact of the revenue growth mentioned above, cost savings and efficiency improvements achieved through optimizing the group's operational management system, and fair value gains on financial liabilities recognized in profit or loss for the year ending December 31, 2025, resulting from the redemption of liabilities converted to equity in the Company's H shares listed on the Stock Exchange of Hong Kong (SEHK) when listed, compared to a fair value loss recorded for the year ending December 31, 2024. The increase in adjusted net profit is primarily due to the revenue growth mentioned above and the combined impact of cost savings and efficiency improvements achieved through optimizing the group's operational management system.