Livzon Pharmaceutical (000513) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 4.9997 billion, down 20.28% year-over-year; net profit attributable to shareholders was RMB 932 million, down 27.23%.

• Gross margin declined to 61.28%, a decrease of 4.74 percentage points year-over-year.

• Operating cash flow remained robust at RMB 1.76 billion, up 4.5% year-over-year.

• The company completed the acquisition of a 67.87% stake in Vietnam's Imexpharm Corporation, expanding its international footprint.

Financial highlights

• Revenue: RMB 4.9997 billion, -20.28% year-over-year.

• Net profit attributable to shareholders: RMB 932 million, -27.23% year-over-year.

• EPS: RMB 1.05, -26.57% year-over-year.

• Gross margin: 61.28%, down 4.74 percentage points.

• Operating cash flow: RMB 1.76 billion, +4.5% year-over-year.

• R&D investment: RMB 381.5 million, 7.63% of revenue.

Outlook and guidance

• The company expects pricing pressure from national procurement and medical insurance negotiations to persist, impacting mature product margins.

• Focus remains on accelerating commercialization of new products and optimizing revenue structure toward innovation-driven growth.

• International expansion and digital transformation are strategic priorities.