Huadong Medicine Co (000963) Q3 2025 earnings summary

Executive summary

• Achieved operating revenue of RMB32.664 billion for Jan–Sep 2025, up 3.77% year-over-year; net profit attributable to shareholders reached RMB2.748 billion, up 7.24% year-over-year.

• Q3 2025 revenue was RMB10.989 billion, up 4.53% year-over-year; net profit attributable to shareholders was RMB933 million, up 7.71% year-over-year.

• Core pharmaceutical subsidiary Zhongmei Huadong saw revenue of RMB11.045 billion (Jan–Sep), up 11.10% year-over-year, and net profit of RMB2.475 billion, up 15.62%.

• Innovative products contributed RMB1.675 billion in revenue, up 62% year-over-year.

• Medical aesthetics segment revenue declined 17.90% year-over-year to RMB1.568 billion.

Financial highlights

• Basic earnings per share for Jan–Sep 2025 was RMB1.5682, up 7.09% year-over-year.

• Weighted average return on equity for Jan–Sep was 11.39%.

• Total assets at period end were RMB39.93 billion, up 5.41% from year-end 2024.

• Net cash flow from operating activities for Jan–Sep was RMB2.611 billion, up 4.17% year-over-year.

• R&D expenses for Jan–Sep were RMB1.508 billion, up 58.92% year-over-year.

Outlook and guidance

• Plans to continue executing annual operational plan in Q4 2025, focusing on research, production, and business activities to achieve full-year targets.

• Preparing for national and commercial insurance negotiations for key innovative products in Q4 2025.