Revenue is highly volatile, contracting 43.05% on a TTM basis after a milestone-driven surge, while robust gross margins of 83.9% are entirely consumed by R&D expenses that are 2.27x larger than revenue.
Ascentage Pharma Group International (AAPG) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Sales/Revenue | 1.02B | 558.48M | 980.65M | 221.98M | 209.71M | 27.91M | 12.45M | 14.51M | 6.81M | 6.33M | 7.67M |
| Revenue Growth % | -11.04% | -43.05% | 341.77% | 5.85% | 651.38% | 124.18% | -14.21% | 113.21% | 7.57% | -17.46% | - |
| Cost of Goods Sold | 152.38M | 131.73M | 29.09M | 30.54M | 22M | 3.33M | 1.97M | 2.1M | 0 | 0 | 261K |
| COGS % of Revenue | - | 23.59% | 2.97% | 13.76% | 10.49% | 11.92% | 15.79% | 14.44% | - | - | 3.4% |
| Gross Profit | 871.24M | 426.75M | 951.57M | 191.44M | 187.71M | 24.58M | 10.48M | 12.42M | 6.81M | 6.33M | 7.41M |
| Gross Margin % | 85.11% | 76.41% | 97.03% | 86.24% | 89.51% | 88.08% | 84.21% | 85.56% | 100% | 100% | 96.6% |
| Gross Profit Growth % | - | -55.15% | 397.05% | 1.99% | 663.62% | 134.47% | -15.57% | 82.42% | 7.57% | -14.56% | - |
| Operating Expenses | 3.38B | 1.61B | 1.32B | 1.06B | 1.04B | 957.75M | 674.42M | 595.1M | 333.33M | 137M | 122.03M |
| OpEx % of Revenue | - | 287.55% | 134.74% | 479.35% | 494.74% | 3431.57% | 5417.07% | 4100.48% | 4896.93% | 2164.92% | 1591.6% |
| Selling, General & Admin | 1.08B | 522.67M | 383.12M | 376.46M | 328.02M | 191.26M | 64.06M | 98.85M | 89.72M | 13.4M | 17.71M |
| SG&A % of Revenue | - | 93.59% | 39.07% | 169.59% | 156.41% | 685.28% | 514.52% | 681.13% | 1318.01% | 211.84% | 230.95% |
| Research & Development | 2.3B | 1.08B | 947.25M | 706.97M | 743.1M | 766.49M | 564.57M | 463.88M | 249.56M | 118.81M | 102.69M |
| R&D % of Revenue | - | 193.96% | 96.59% | 318.48% | 354.35% | 2746.3% | 4534.71% | 3196.33% | 3666.3% | 1877.61% | 1339.4% |
| Other Operating Expenses | 0 | 7 | -9.07M | -19.36M | -33.6M | 0 | 45.8M | 32.37M | -5.95M | 4.78M | 1.63M |
| Operating Income | -2.51B | -1.18B | -369.73M | -872.64M | -849.81M | -869.84M | -663.94M | -582.68M | -345.44M | -130.67M | -114.62M |
| Operating Margin % | -244.78% | -211.14% | -37.7% | -393.11% | -405.23% | -3116.57% | -5332.86% | -4014.92% | -5074.83% | -2064.92% | -1495% |
| Operating Income Growth % | - | -218.92% | 57.63% | -2.69% | 2.3% | -31.01% | -13.95% | -68.68% | -164.37% | -14% | - |
| EBITDA | -2.34B | -1.1B | -276.56M | -779.44M | -802.39M | -852.65M | -646.98M | -578.86M | -326.26M | -118.17M | -113.54M |
| EBITDA Margin % | -228.85% | -196.08% | -28.2% | -351.12% | -382.62% | -3055.01% | -5196.59% | -3988.56% | -4793.03% | -1867.37% | -1480.85% |
| EBITDA Growth % | -141.45% | -295.95% | 64.52% | 2.86% | 5.89% | -31.79% | -11.77% | -77.42% | -176.1% | -4.08% | - |
| D&A (Non-Cash Add-back) | 163.08M | 84.12M | 93.17M | 93.19M | 47.42M | 17.18M | 16.96M | 3.83M | 19.18M | 12.5M | 1.08M |
| EBIT | -2.51B | -1.18B | -330.8M | -836.8M | -834.39M | -815.52M | -669.19M | -1.48B | -345.44M | -62.18M | -117.32M |
| Net Interest Income | 38.11M | 27.29M | -26.61M | -63.65M | -43.06M | -9.63M | -1.04M | 8.63M | -29.86M | -57.63M | -3.25M |
| Interest Income | 90.41M | 79.89M | 37.84M | 32.41M | 9.73M | 7.11M | 5.22M | 12.91M | 7.06M | 304K | 13K |
| Interest Expense | 52.3M | 52.6M | 64.45M | 96.06M | 52.78M | 16.73M | 6.25M | 4.27M | 36.92M | 57.94M | 3.26M |
| Other Income/Expense | -71.11M | -23.21M | -25.52M | -60.23M | -37.36M | 37.59M | -11.51M | -899.63M | -15M | 10.55M | 6.78M |
| Pretax Income | -2.58B | -1.2B | -395.25M | -932.86M | -887.17M | -832.25M | -675.45M | -1.48B | -360.44M | -120.12M | -107.84M |
| Pretax Margin % | -251.72% | -215.29% | -40.31% | -420.24% | -423.05% | -2981.9% | -5425.29% | -10213.71% | -5295.15% | -1898.17% | -1406.53% |
| Income Tax | 30.74M | 6.75M | 10.43M | -7.15M | -4.25M | -49.83M | 2.16M | -1.6M | -1.6M | -1.6M | 0 |
| Effective Tax Rate % | -1.19% | -0.56% | -2.64% | 0.77% | 0.48% | 5.99% | -0.32% | 0.11% | 0.44% | 1.33% | 0% |
| Net Income | -2.61B | -1.21B | -405.43M | -925.64M | -882.92M | -782.42M | -677.61M | -1.48B | -345.31M | -118.51M | -107.84M |
| Net Margin % | -254.67% | -216.47% | -41.34% | -416.98% | -421.02% | -2803.38% | -5442.62% | -10202.67% | -5072.82% | -1872.85% | -1406.53% |
| Net Income Growth % | -116.5% | -198.18% | 56.2% | -4.84% | -12.84% | -15.47% | 54.24% | -328.81% | -191.36% | -9.9% | - |
| Net Income (Continuing) | -2.61B | -1.21B | -405.68M | -925.71M | -882.92M | -782.42M | -677.61M | -1.48B | -345.31M | -118.51M | -107.84M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 9.45M | 9.76M | 9.97M | 10.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -27.94 | -13.56 | -5.36 | -52.48 | -53.60 | -49.12 | -50.24 | -112.04 | -26.68 | -9.16 | -8.32 |
| EPS Growth % | 61.34% | -152.99% | 89.79% | 2.09% | -9.12% | 2.23% | 55.16% | -319.94% | -191.27% | -10.1% | - |
| EPS (Basic) | - | -13.56 | -5.36 | -52.48 | -53.60 | -49.12 | -50.24 | -112.04 | -26.68 | -9.16 | -8.32 |
| Diluted Shares Outstanding | 93.31M | 89.03M | 75.52M | 17.64M | 16.48M | 15.91M | 13.49M | 13.22M | 12.94M | 12.94M | 12.94M |
| Basic Shares Outstanding | 93.31M | 89.03M | 75.52M | 17.64M | 16.48M | 15.91M | 13.49M | 13.22M | 12.94M | 12.94M | 12.94M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying AAPG stock.
For fiscal year 2025, Ascentage Pharma Group International (AAPG) reported total revenue of $558.5M. This represents a 7184.2% increase compared to $7.7M in 2016.
Ascentage Pharma Group International (AAPG) reported a net loss of $1.21B for the fiscal year ending 2025.
Ascentage Pharma Group International (AAPG) reported an operating income of $-1179.2M, resulting in an operating profit margin of -211.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Ascentage Pharma Group International (AAPG) generated $426.7M in gross profit for the year, representing a gross profit margin of 76.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Deep operating losses and revenue volatility
Revenue Swings Mask Underlying Commercial Ramp
AAPG's revenue exhibits extreme volatility, with TTM growth contracting 43.05% after a prior 113% surge, indicating heavy reliance on non-recurring licensing milestones rather than a steady commercial trajectory.
The quarterly data shows revenue can swing from $14.9M to $823.7M, driven by the recognition of large upfront payments from partnerships like Takeda, rather than organic sales growth. This lumpy profile masks the slower, more stable commercial uptake of Olverembatinib within China's hospital procurement system. Investors should separate one-time milestone income from the underlying commercial ramp to assess true demand for the company's products.
High Gross Margins Contradict Deep Operating Losses
AAPG's gross margin is robust, averaging near 90% across most quarters, yet this profitability is entirely consumed by R&D spending, resulting in consistent operating losses exceeding -190% of revenue.
The 76.41% to 98.2% gross margin indicates that the marginal cost of manufacturing approved oncology drugs is low, a typical characteristic for biotech companies post-approval. However, the stark contrast with the -211.14% operating margin highlights that R&D and commercialization costs are growing at a pace that far outstrips current revenue generation. This margin structure confirms the company is in a classic investment phase, where profitability is sacrificed for pipeline development.
Negative Operating Leverage Amplifies R&D Burn
Operating losses have scaled with revenue in absolute terms but worsened as a percentage, indicating that increases in top-line have not yet translated into improved operating efficiency or fixed cost absorption.
Despite revenue growth in certain periods, operating income remains deeply negative, with losses ranging from -$340.6M to -$744.0M per quarter. This suggests the company's cost base, particularly R&D, is expanding ahead of commercial revenue, creating negative operating leverage. The path to positive operating leverage requires revenue growth to accelerate while R&D spending stabilizes, a balance the current financials do not reflect.
R&D Dominates Cost Structure and Cash Burn
Research and development expenses consistently represent the single largest cost category, often exceeding total revenue by more than double, driving the company's substantial cash consumption.
R&D expenses have ranged from $309.8M to $678.8M quarterly, dwarfing both COGS and SG&A. This heavy allocation underscores a strategic prioritization of pipeline advancement, specifically for APG-2575, over near-term profitability. The scale of this investment, relative to revenue, necessitates monitoring for any sign of capitalization of clinical costs, which could artificially reduce this line item on the income statement.
The 2024Q2 Licensing Milestone Anomaly
The 2024Q2 quarter, with revenue of $823.7M and a rare profit, represents a critical inflection point driven by the recognition of a large, non-recurring licensing payment.
This quarter stands out as the only profitable period in the dataset, with $188.0M in operating income, solely due to a massive revenue inflow. It demonstrates the potential scale of cash infusions from global partnership milestones but also highlights the vulnerability of the income statement to such events. This inflection was likely a one-time event related to a major deal, such as the Takeda agreement, and should not be extrapolated as a sustainable earnings trend.
The Sustainability of High-Tech R&D Spend
A key bear case would focus on whether AAPG's massive R&D expenditure, which has grown from ~$371M to ~$678M quarterly, is translating into sufficient clinical and commercial progress to justify the capital burn.
The data shows R&D costs have nearly doubled over two years while revenue remains volatile and predominantly non-recurring. A skeptic would argue this represents a high-risk capital allocation strategy with uncertain returns, especially if key trials for APG-2575 face delays or setbacks. The lack of consistent guidance, as noted in recent context, adds to this uncertainty, suggesting management itself may lack visibility on the near-term return on this R&D investment.