Dong-E-E-Jiao Co. (000423) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥3.16 billion, up 3.39% year-over-year, with net profit attributable to shareholders at ¥860 million, a 5.66% increase year-over-year.

• Core business remains in Ejiao and related TCM products, with continued product innovation and expansion into health foods and male health supplements.

• The company maintained a 100% pass rate in external quality inspections and advanced digital quality management systems.

• Major investments included the acquisition of an 80% stake in Dong'e Ejiao (Jilin) Pharmaceutical and ongoing construction of a health consumer goods industrial park.

Financial highlights

• Operating income: ¥3.16 billion, up 3.39% year-over-year.

• Net profit attributable to shareholders: ¥860 million, up 5.66% year-over-year.

• Basic EPS: ¥1.34, up 5.97% year-over-year.

• Gross margin for core Ejiao products remained above 77%.

• Operating cash flow dropped sharply to ¥81.6 million, down 91.56% year-over-year due to increased procurement, higher personnel costs, and greater tax and marketing outlays.

Outlook and guidance

• The company will deepen its dual-engine strategy of pharmaceuticals and health consumer goods, focusing on product innovation, digital transformation, and international expansion.

• Plans to strengthen raw material supply chains, especially for donkey hide, and further invest in male health and anti-aging product lines.