Huadong Medicine Co (000963) Q1 2026 earnings summary

Executive summary

• Achieved revenue of ¥11.18 billion in Q1 2026, up 4.17% year-over-year and 2.15% sequentially from Q4 2025.

• Net profit attributable to shareholders reached ¥1.00 billion, up 9.56% year-over-year; adjusted net profit (excluding non-recurring items) was ¥990 million, up 10.30% year-over-year, marking a record for the period.

• Core pharmaceutical industrial subsidiary posted revenue of ¥4.05 billion, up 11.82% year-over-year, and net profit of ¥931 million, up 10.44% year-over-year.

• Innovative products contributed ¥810 million in sales and agency revenue, up 61.8% year-over-year, accounting for 20.05% of industrial revenue.

Financial highlights

• Operating income: ¥11.18 billion, up 4.17% year-over-year.

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

• Adjusted net profit: ¥990 million, up 10.30% year-over-year.

• Basic and diluted EPS: ¥0.5715, up from ¥0.5224 and ¥0.5213, respectively.

• Total assets: ¥39.91 billion, up 2.23% from year-end 2025.

• Net cash flow from operating activities: -¥852 million, slightly more negative year-over-year.

Outlook and guidance

• Management remains focused on innovation, resource integration, and cross-segment collaboration to drive growth amid intensifying competition and complex policy environment.

• Industrial microbiology and innovative product segments expected to maintain strong growth, while medical aesthetics faces ongoing pressure.