Hualan Biological Engineering (002007) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was ¥762.1 million, down 12.16% year-over-year.

• Net profit attributable to shareholders was ¥230.3 million, a 26.44% decrease year-over-year.

• Operating cash flow turned negative at -¥6.39 million, compared to ¥14.18 million last year.

• Several new drug approvals and clinical trial authorizations were received during the quarter.

Financial highlights

• Revenue declined 12.16% year-over-year; net profit dropped 26.44%.

• Basic and diluted EPS were ¥0.1260, down from ¥0.1715 and ¥0.1712, respectively.

• Gross margin remained stable as cost of sales was nearly flat year-over-year.

• Cash flow from operations decreased by 145.07% due to higher cash outflows for goods.

• Total assets at quarter-end were ¥15.06 billion, down 1.33% from year-end 2025.

Outlook and guidance

• Company is optimizing supply chain and tax management to mitigate impact from VAT policy changes.

• Focus remains on compliance and value creation for shareholders amid regulatory changes.