Huadong Medicine Co (000963) Q2 2026 earnings summary

Executive summary

• Achieved revenue of ¥22.07 billion in H1 2026, up 1.81% year-over-year; net profit attributable to shareholders reached ¥1.86 billion, up 2.53% year-over-year; cash flow from operations was ¥2.50 billion, up 1.73%.

• Four business segments: pharmaceutical manufacturing, pharmaceutical distribution, medical aesthetics, and industrial microbiology, with innovation and internationalization as key drivers.

• Innovation products' revenue in pharmaceutical manufacturing surged 52% year-over-year, now accounting for 21.14% of segment revenue.

• Medical aesthetics segment faced a 41.43% revenue decline due to industry-wide adjustments and strategic restructuring.

• Industrial microbiology segment achieved 18.64% revenue growth, with xRNA and peptide APIs as key drivers.

Financial highlights

• Revenue: ¥22.07 billion (+1.81% YoY); net profit attributable to shareholders: ¥1.86 billion (+2.53% YoY); adjusted net profit: ¥1.86 billion (+5.44% YoY).

• Basic EPS: ¥1.0610 (+3.08% YoY); weighted average ROE: 7.31% (-0.31pp YoY).

• Total assets: ¥39.98 billion (+2.40% from year-end 2025); net assets: ¥25.44 billion (+2.54%).

• Cash flow from operations: ¥2.50 billion (+1.73% YoY).

• Dividend: ¥0.35 per 10 shares (pre-tax), no bonus shares or capital increase.

Outlook and guidance

• Will continue to focus on innovation, international expansion, and pipeline commercialization.

• Plans to accelerate new product launches, optimize organizational structure, and enhance R&D and compliance capabilities.

• Expects medical aesthetics to recover as new products mature and market confidence returns.