Guangzhou Baiyunshan Pharmaceutical Holdings Company (874) Q2 2026 earnings summary

Executive summary

• Operating revenue for the first half of 2026 reached RMB42.09 billion, up 0.61% year-over-year, while net profit attributable to shareholders declined 16.70% to RMB2.10 billion.

• The Group maintained its strategic focus on biopharmaceuticals and healthcare, advancing procurement reforms, product innovation, digital transformation, and expanding its product portfolio, R&D pipeline, and international presence.

• Major activities included cost reduction initiatives, precision marketing, expansion in plant-based beverages, procurement reforms, product launches, digital transformation, and capital operations such as M&A and venture investments.

Financial highlights

• Total profit for the period was RMB2.60 billion, down 15.81% year-over-year.

• Net cash flow from operating activities improved to -RMB269.95 million from -RMB3.40 billion a year earlier.

• Basic and diluted EPS were RMB1.289, down 16.70% year-over-year; gross profit margin was 17.10%, down 1.09 percentage points YoY.

• Net assets attributable to shareholders rose 3.56% to RMB39.13 billion as of June 30, 2026.

• Interim cash dividend of RMB0.30 per share (tax inclusive), totaling RMB487.74 million, was proposed.

Outlook and guidance

• The Group will focus on flagship product cultivation, channel expansion for beverages, and retail/wholesale optimization in H2 2026, with intensified R&D, overseas market expansion (Vietnam, Malaysia, Uzbekistan, Central Asia), and digital transformation.

• Capital operations and M&A will be advanced to empower industrial upgrading.