Huadong Medicine Co (000963) Q4 2025 earnings summary

Executive summary

• Achieved all annual operating targets in 2025, with steady revenue growth and significant progress in innovation and transformation.

• Six innovative products were approved and launched, with innovative product revenue reaching ¥2.34 billion, up 64.2% year-over-year.

• R&D pipeline expanded to 96 projects, with 12 innovative products pending approval and 16 in phase III clinical trials.

• Medical aesthetics business expanded product coverage and entered a new era of multi-engine growth.

Financial highlights

• 2025 revenue: ¥43.61 billion, up 4.07% year-over-year.

• Net profit attributable to shareholders: ¥3.41 billion, down 2.78% year-over-year.

• Operating cash flow: ¥4.25 billion, up 13.25% year-over-year.

• Comprehensive gross margin: 32.36%.

• Total assets at year-end: ¥39.04 billion; net assets attributable to shareholders: ¥24.81 billion.

• Proposed cash dividend: ¥0.58 per share (10 shares: ¥5.80).

Outlook and guidance

• Expect continued high growth in innovative product business in 2026, with over 40 new innovative products to be launched in the next five years.

• Will focus on core areas: endocrinology, autoimmunity, oncology, and build a long-term competitive innovation ecosystem.

• Medical aesthetics to further enrich high-end product lines and strengthen global leadership.

• Industrial microbiology to accelerate internationalization and expand global supply chain integration.