Huadong Medicine Co (000963) Q1 2025 earnings summary

Executive summary

• Operating revenue reached ¥10.74 billion, up 3.12% year-over-year and 2.95% sequentially from Q4 2024.

• Net profit attributable to shareholders was ¥915 million, a 6.06% increase year-over-year.

• Net profit after deducting non-recurring gains/losses hit a record ¥897 million, up 7.04% year-over-year and 3.16% quarter-over-quarter.

• Core subsidiary Zhongmei Huadong posted operating revenue of ¥3.62 billion (+6.52% YoY) and net profit of ¥843 million (+12.20% YoY).

• Pharmaceutical segment revenue was ¥6.93 billion (+3.23% YoY), with net profit of ¥115 million (+7.33% YoY).

Financial highlights

• Operating revenue: ¥10.74 billion (+3.12% YoY).

• Net profit attributable to shareholders: ¥915 million (+6.06% YoY).

• Net profit after non-recurring items: ¥897 million (+7.04% YoY).

• Basic EPS: ¥0.5224 (+5.98% YoY).

• Net cash flows from operating activities: -¥833 million (down 71.87% YoY).

• Total assets: ¥39.45 billion (+4.14% from end of last year).

• Owners' equity: ¥24.06 billion (+4.33% from end of last year).

Outlook and guidance

• Continued robust growth expected for innovative medicines, especially CAR-T and biosimilars.

• Guizhou Pharma projected to sustain strong growth in 2025.

• Aesthetic medicine segment to accelerate growth in China with new product launches and market expansion.

• Industrial microbiology segment expected to maintain rapid growth, driven by overseas expansion.