Sihuan Pharmaceutical Holdings Group (460) investor relations material

Executive summary

• Total revenue for 2026H1 reached RMB 1,161.2 million, up 1.3% year-over-year, driven by strong growth in medical aesthetics and innovative drug segments.

• Net profit attributable to owners rose 119% year-over-year to RMB 224.7 million, with overall profit for the period at RMB 212.6 million and operating profit up 18.6%.

• Medical aesthetics revenue grew 18.5% year-over-year to RMB 693.3 million, remaining the largest profit contributor.

• Innovative drug segment revenue surged up to 349.1% year-over-year to RMB 261.4 million, with significant reduction in net loss and progress in commercialization and internationalization.

• Generic drug revenue declined 58.9% year-over-year to RMB 206.5 million due to policy pressures and market competition.

Financial highlights

• Gross profit was RMB 681.7 million, down 10% year-over-year; gross margin decreased to 58.7% from 66.1% due to lower generic drug prices.

• Pre-tax profit reached RMB 366 million, up 133% year-over-year, aided by non-recurring gains from asset disposals and investment income.

• Cash and equivalents, including wealth management and term deposits, totaled RMB 4,018.2 million as of 30 June 2026.

• Cost control measures led to a 6% reduction in distribution expenses, 2% in administrative, and 34% in financial expenses.

• Basic and diluted EPS was RMB 0.0249, up from RMB 0.0111 year-over-year.

Outlook and guidance

• Continued focus on dual engines: medical aesthetics and innovative drugs, leveraging AI for R&D and expanding global markets.

• Medical aesthetics to deepen high-end market penetration, expand global sales channels, and pursue global clinical research.

• Innovative drug segment to accelerate commercialization, international licensing, and pipeline advancement, especially in oncology and metabolism.

• Continued divestment and optimization of generic and non-core assets.