Sichuan Kelun Pharmaceutical (002422) H1 2026 earnings summary

Executive summary

• Achieved strong revenue growth in H1 2026, driven by commercialization of multiple oncology and immunology products and expanded clinical pipeline.

• Revenue for H1 2026 was ¥8.84 billion, down 2.7% year-over-year; net profit attributable to shareholders rose 12.71% to ¥1.13 billion.

• Cash flow from operations nearly doubled, driven by one-time settlement income at a subsidiary.

• Innovative drug sales and settlement income boosted profits, while core infusion and non-infusion products saw margin pressure from centralized procurement.

• Expanded global partnerships, notably with MSD, and advanced several pivotal clinical trials, including new indications and combination therapies.

Financial highlights

• Total revenue reached RMB 1,382.8 million in H1 2026, up 41% year-over-year from RMB 978.3 million in H1 2025.

• Pharmaceutical product sales contributed RMB 657 million, a 112% increase compared to the same period last year.

• Gross profit rose to RMB 1,076.7 million, up 46% year-over-year.

• Operating income: ¥8.84 billion (–2.7% YoY); net profit attributable to shareholders: ¥1.13 billion (+12.71% YoY).

• Cash flow from operations: ¥2.34 billion (+96.81% YoY).

Outlook and guidance

• Plans to further expand clinical adoption of ADCs in breast and lung cancer, aiming for new standard-of-care positions and rapid volume growth post-NRDL inclusion.

• The company will continue to focus on innovation, cost control, and expanding its high-end infusion and innovative drug portfolios.

• International expansion and R&D pipeline acceleration remain strategic priorities.