Huadong Medicine Co (000963) Q4 2025 earnings summary

Executive summary

• Achieved all annual business targets in 2025, the first year of the 8th Three-Year Plan, amid a complex environment.

• Innovation-driven transformation accelerated, with six new innovative products approved and strong commercialization of new drugs.

• Revenue from innovative products rose 64.2% year-over-year to RMB 2.34 billion.

• Medical aesthetics business expanded with new product launches and full coverage across major injectable categories.

• Completed a 60,000 sqm biopharmaceutical innovation and manufacturing center, enhancing supply chain and commercialization.

Financial highlights

• 2025 operating revenue: RMB 43.61 billion, up 4.07% year-over-year.

• Net profit attributable to shareholders: RMB 3.41 billion, down 2.78% year-over-year.

• Net profit after non-recurring items: RMB 3.31 billion, down 1.20% year-over-year.

• Net cash flow from operating activities: RMB 4.25 billion, up 13.25% year-over-year.

• Consolidated gross profit margin: 32.36%.

• Total assets at year-end: RMB 39.04 billion; net assets attributable to shareholders: RMB 24.81 billion.

• ROE: 14.28%; asset-liability ratio: 35.52%.

• Basic EPS: RMB 1.9484; diluted EPS: RMB 1.9465.

Outlook and guidance

• Expects strong growth in innovative products, with over 40 launches planned in the next five years.

• Focus remains on endocrinology, autoimmune diseases, and oncology.

• Aesthetic medicine business to recover from cyclical downturn with new product launches in 2026.

• Industrial microbiology segment to expand international footprint and product certification.

• Continued high R&D investment and talent recruitment to drive innovation.