Jointown Pharmaceutical Group (600998) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 87.28 billion, up 7.61% year-over-year, with Q2 growth accelerating to 8.71%.

• Net profit attributable to shareholders was RMB 1.20 billion, down 16.95% year-over-year, mainly due to a decrease in non-recurring gains.

• Excluding non-recurring items, net profit attributable to shareholders grew 3.22% year-over-year, reflecting improved core profitability.

• Cash flow from operating activities turned positive in Q2, with full-year cash flow expected to match operating performance.

Financial highlights

• Gross margin for H1 2026 was 7.37%, slightly up from 7.31% in H1 2025.

• Basic and diluted EPS were RMB 0.23, down 20.69% year-over-year.

• Total assets increased 3.75% from year-end 2025 to RMB 120.78 billion.

• Net assets attributable to shareholders rose 0.70% to RMB 28.76 billion.

• Non-recurring gains dropped to RMB 218 million from RMB 494 million in H1 2025.

Outlook and guidance

• The company will continue to focus on the "Four New, Two Transformations" strategy, optimizing product mix, expanding markets, and accelerating digital and AI innovation.

• Full-year operating cash flow is expected to be positive and aligned with profit growth.

• Management expects continued steady growth in revenue and profitability for the remainder of 2026.