Changchun High-Tech Industry (Group) (000661) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was ¥5.54 billion, down 16.06% year-over-year; net profit attributable to shareholders was ¥475 million, down 51.64%.

• Core pharmaceutical subsidiary saw revenue drop 17.65% and net profit drop 47.84% year-over-year.

• Vaccine subsidiary revenue grew 6.89% but posted a net loss; TCM subsidiary revenue fell 10.53% but net profit rose 2.19%.

• Real estate revenue surged 202.56% due to internal asset restructuring, but this was offset in consolidated results.

Financial highlights

• Operating cash flow increased 40.92% year-over-year to ¥1.72 billion.

• Gross margin for pharmaceuticals was 83.81%, down 4.76 percentage points year-over-year.

• R&D investment was ¥1.06 billion, down 20.53% year-over-year.

• Basic and diluted EPS were both ¥1.18, down 51.64% year-over-year.

• Total assets at period end were ¥30.67 billion, up 1.97% from year-end 2025.

Outlook and guidance

• Company expects continued pressure on short-term profitability due to price adjustments from inclusion of core products in the national reimbursement drug list.

• Focus remains on long-term growth via innovation, global expansion, and cost control.

• R&D pipeline includes nearly 90 projects, with 40 Class 1 new drugs and 50 clinical-stage assets.