The Reality and Illusion of Profit Turnaround at XtalPi, the "AI Pharmaceutical" Company

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Hong Kong's "AI pharmaceutical star company" XtalPi Holdings has delivered its first turnaround report card since listing.

In 2025, XtalPi Holdings achieved operating revenue of 802 million yuan, a year-on-year surge of 201.2%; meanwhile, it recorded a net profit of 124 million yuan, successfully reversing the huge loss of 1.517 billion yuan in 2024.

The absolute driving force behind the rapid growth in revenue was XtalPi Holdings' core business segment, "Drug Discovery Solutions," which generated 538 million yuan in 2025, a year-on-year increase of 418.9%.

According to XtalPi Holdings, milestone achievements in pipeline progress and rapid growth in the antibody business brought significant increases in income.

The highest contributor among them was the cooperation with DoveTree.

During the reporting period, XtalPi Holdings and DoveTree entered into collaboration for small molecule drug development targeting multiple high-value targets in oncology, autoimmune diseases, and neurological diseases.

This collaboration brought a hefty upfront payment of $51 million (approximately 365 million yuan).

According to confirmation by AllWeather Technology and XtalPi Holdings, this upfront payment was included in the 2025 revenue.

Based on this calculation, this upfront payment accounted for 45.51% of revenue, practically supporting nearly half of XtalPi Holdings' income.

Currently, both parties' pipelines are progressing smoothly, their strategic partnership has moved into the deep execution stage, and XtalPi Holdings has also teamed up with the DoveTree team to establish a next-generation complex molecule platform for drug research and development targeting multiple difficult-to-drug targets.

Meanwhile, XtalPi Holdings has signed a multi-target strategic cooperation and platform licensing agreement with Eli Lilly in the field of large molecule drug research and development.

In addition, another important driving force for XtalPi Holdings’ turnaround comes from "other net income."

In 2025, XtalPi Holdings’ "other net income" reached 514 million yuan, the vast majority of which came from changes in the fair value of financial assets measured at fair value through profit and loss.

At the same time, the fair value loss of 875 million yuan on convertible redeemable preferred shares in 2024 naturally disappeared after conversion upon company listing, which also relieved a heavy historical burden from the 2025 profit and loss statement.

With the continued advancement of multiple pipelines, whether XtalPi Holdings can secure more "big orders" and achieve stable profitability in 2026 is being closely watched.

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