Huadong Medicine Co (000963) Q3 2026 earnings summary

Executive summary

• 9M 2026 revenue rose 1.09% YoY to ¥33.02bn; attributable net income increased 0.87% to ¥2.77bn, while adjusted net income grew 3.57% to ¥2.79bn.

• Q3 revenue declined 0.33% YoY to ¥10.95bn and attributable net income fell 2.35% to ¥911.1m; adjusted net income was nearly flat, up 0.03%.

• Innovation products and services gained traction, while medical aesthetics remained under pressure from market adjustment and intensifying competition.

Financial highlights

• 9M revenue was ¥33.019bn (+1.09% YoY); attributable net income was ¥2.772bn (+0.87%) and adjusted net income was ¥2.790bn (+3.57%).

• Q3 revenue was ¥10.952bn (-0.33% YoY); attributable net income was ¥911.1m (-2.35%) and adjusted net income was ¥932.1m (+0.03%).

• 9M operating cash flow was ¥1.861bn, down 28.73% YoY; consolidated net profit was ¥2.748bn versus ¥2.742bn in the prior-year period.

Outlook and guidance

• Around 10 pipeline products in NDA/BLA review are expected to gain approval next year; more than 40 innovative products are expected to launch in phases over the next five years.

• HDM1002 weight-management Phase III met primary and key secondary endpoints; an NDA filing in China is planned, while T2D Phase III primary-endpoint data are expected in Q4 2026.

• HDM1005 weight-management Phase III reached its 40-week primary-endpoint interim analysis; pre-NDA communication is planned for Q4 2026.

• Industrial microbiology is expected to sustain growth with overseas expansion; medical aesthetics plans continued strategic adjustment and organizational optimization to rebuild recovery momentum.