Zhejiang Huahai Pharmaceutical (600521) investor relations material

Executive summary

• Revenue for H1 2026 reached RMB 4.91 billion, up 8.78% year-over-year; net profit attributable to shareholders was RMB 770.91 million, up 88.26% year-over-year, driven by core business growth and one-off gains.

• Excluding non-recurring items, net profit attributable to shareholders grew 17.31% year-over-year to RMB 426.32 million.

• Cash flow from operating activities increased 197.06% year-over-year to RMB 1.10 billion.

• Major one-off gains included disposal of a subsidiary and reversal of provisions following a legal arbitration win.

Financial highlights

• Operating income: RMB 4.91 billion (+8.78% YoY); total profit: RMB 902.04 million (+66.16% YoY).

• Net profit attributable to shareholders: RMB 770.91 million (+88.26% YoY); basic/diluted EPS: RMB 0.52 (+85.71% YoY).

• Net assets attributable to shareholders: RMB 9.78 billion (+3.56% from year-end 2025).

• Cash flow from operations: RMB 1.10 billion (+197.06% YoY).

• Non-recurring profit: RMB 344.59 million, mainly from asset disposals and legal compensation.

Outlook and guidance

• Focus on transformation from traditional APIs and generics to innovative drugs and internationalization.

• Continued investment in R&D, expansion of high-value product lines, and global market penetration.

• Emphasis on compliance, quality, and EHS management amid tightening regulatory environment.