Luye Pharma Group (2186) H2 2025 earnings summary

Executive summary

• Revenue rose 4.1% year-over-year to RMB6,308.4 million, driven by new product launches and international expansion.

• Net profit increased 9.4% to RMB705.7 million, with profit attributable to shareholders up 31.1% to RMB618.7 million.

• EBITDA grew 12.7% to RMB2,470.7 million, and gross profit margin remained strong at 66.0%.

• No dividend was proposed for the year.

Financial highlights

• Gross profit increased 2.9% to RMB4,162.6 million; gross margin slightly decreased to 66.0%.

• Profit before tax rose 12.6% to RMB944.6 million.

• Earnings per share increased to RMB15.88 cents from RMB12.54 cents.

• Other income and gains surged 31.2% to RMB472.4 million, mainly from fair value gains and FX gains.

• Selling and distribution expenses were stable at RMB1,826.2 million; administrative expenses rose 16.8% to RMB679.6 million.

• R&D costs declined, contributing to a 22.8% drop in other expenses.

• Finance costs increased 22.2% to RMB686.6 million due to higher interest expenses.

Outlook and guidance

• Management expects continued revenue and profit growth, supported by new product launches and expanding market coverage.

• Several innovative drugs are expected to complete clinical trials or have data readouts in 2026.

• Focus remains on ramping up new products, optimizing R&D, and improving cost efficiency.