Huadong Medicine Co (000963) Q2 2025 earnings summary

Executive summary

• Achieved operating revenue of RMB 21.675 billion in H1 2025, up 3.39% year-over-year; net profit attributable to shareholders was RMB 1.815 billion, up 7.01% year-over-year; net profit excluding non-recurring items rose 8.40% year-over-year.

• All four business segments—pharmaceutical industry, pharmaceutical business, aesthetic medicine, and industrial microbiology—contributed to overall growth, with notable strength in innovative drug sales and industrial microbiology.

• R&D investment in the pharmaceutical industry reached RMB 1.484 billion, up 33.75% year-over-year, with direct R&D expenditure up 54.21%, accounting for 15.97% of segment revenue.

• The company maintained a stable upward trend, laying a solid foundation for annual targets.

Financial highlights

• Operating revenue: RMB 21.675 billion, up 3.39% year-over-year.

• Net profit attributable to shareholders: RMB 1.815 billion, up 7.01% year-over-year.

• Net profit after non-recurring items: RMB 1.762 billion, up 8.40% year-over-year.

• Basic EPS: RMB 1.0293; diluted EPS: RMB 1.0346.

• Net cash flow from operating activities: RMB 2.457 billion, up 7.98% year-over-year.

• Total assets: RMB 38.82 billion, up 2.47% from year-end 2024.

Outlook and guidance

• The company is focused on innovation-driven transformation, aiming for high-quality, efficient, and sustainable development.

• R&D pipeline includes over 80 innovative drugs, with multiple clinical and regulatory milestones expected in H2 2025.

• The company expects continued growth in innovative drug sales and further expansion in industrial microbiology and aesthetic medicine.