Hansoh Pharmaceutical Group (3692) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB8,304 million, up 11.7% year-over-year, driven by strong growth in innovative medicines, which contributed 85.4% of total revenue and grew 15.4% year-over-year.

• Net profit rose 35.8% to RMB4,258 million, with basic EPS increasing 33.1% to RMB0.70, primarily due to higher innovative medicine sales and increased other income.

• R&D investment increased 20.7% to RMB1,739 million, representing 20.9% of revenue, supporting a robust pipeline and multiple clinical advancements.

• Interim dividend of HK$28.50 cents per share declared, up from HK$23.16 cents per share in H1 2025.

• ESG rating upgraded to AAA, ranking in the top 1% of the Chinese pharmaceutical industry.

Financial highlights

• Gross profit rose to RMB7,633 million, with cost of sales accounting for 8.1% of revenue.

• Other income surged 127.9% to RMB1,318 million, mainly from significant investment income.

• Selling and distribution expenses increased 2.3% to RMB1,861 million; administrative expenses decreased 4.8% to RMB326 million.

• Operating cash flow was RMB2,337 million; capital expenditure reached RMB303 million.

• Net current assets stood at RMB32,968 million; current ratio was 4.9, down from 8.1 at year-end 2025 due to convertible bond issuance.

• Gearing ratio increased to 19.0% from 11.4% at year-end 2025.

Outlook and guidance

• Continued focus on R&D investment and pipeline expansion in oncology and non-oncology areas.

• Plans to accelerate clinical development, registration, and commercialization of new products, with multiple pivotal clinical data releases expected in H2 2026.

• Ongoing internationalization and active pursuit of global licensing, collaboration, and strategic opportunities.