Huadong Medicine Co (000963) Q1 2026 earnings summary

Executive summary

• Operating revenue for Q1 2026 reached RMB 11.18 billion, up 4.17% year-over-year and 2.15% sequentially from Q4 2025.

• Net profit attributable to shareholders was RMB 1.00 billion, a 9.56% increase year-over-year, with adjusted net profit (excluding non-recurring items) up 10.30% to RMB 990 million, a historical high for the period.

• The company focused on innovation, new product launches, and expanding market presence, driving strong growth in innovative product revenue.

Financial highlights

• Operating revenue: RMB 11.18 billion, up 4.17% year-over-year.

• Net profit attributable to shareholders: RMB 1.00 billion, up 9.56% year-over-year.

• Adjusted net profit (excluding non-recurring items): RMB 990 million, up 10.30% year-over-year.

• Basic and diluted EPS: RMB 0.5715, up 9.40% and 9.63% year-over-year, respectively.

• Net cash flow from operating activities: -RMB 852 million, a 2.35% decrease year-over-year.

Outlook and guidance

• External competition and policy volatility are expected to intensify in 2026, but the company remains committed to its innovation-driven strategy and operational upgrades.

• Continued focus on R&D, clinical studies, and commercialization of innovative products to drive future growth.