Jiangsu Hengrui Medicine (600276) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 15.46 billion, down 1.94% year-over-year; net profit attributable to shareholders was RMB 4.47 billion, up 0.34% year-over-year.

• Innovative drug sales reached RMB 8.81 billion, up 16.38% year-over-year, accounting for 63.16% of pharmaceutical sales.

• R&D investment increased 18.96% year-over-year to RMB 4.61 billion, with 10 new innovative products entering clinical phase I.

• International business expanded, with a major licensing deal with BMS and continued global clinical trials.

Financial highlights

• Operating income: RMB 15.46 billion, down 1.94% year-over-year.

• Net profit attributable to shareholders: RMB 4.47 billion, up 0.34% year-over-year.

• Operating cash flow: RMB 1.99 billion, down 53.8% year-over-year due to lower overseas licensing receipts.

• Basic and diluted EPS: RMB 0.68, down 2.86% year-over-year.

• Gross margin remained stable; R&D expenses rose to RMB 4.61 billion.

Outlook and guidance

• Management expects continued growth in innovative drug sales, driven by new indications and expanded hospital coverage.

• International licensing income is expected to increase in H2 2026 as BMS upfront payment is recognized.

• Focus remains on pipeline expansion, global clinical trials, and commercialization of new products.