Sihuan Pharmaceutical Holdings Group (460) H1 2025 earnings summary

Executive summary

• Total revenue for H1 2025 reached RMB 1,146.2 million, up 20.7% year-over-year, driven by an 81.3% surge in medical aesthetics and nearly doubled innovative drug sales.

• Medical aesthetics revenue rose to RMB 585.2 million (+81.3% YoY), with segment profit up 215.3% to RMB 309.5 million.

• Innovative drugs and other new businesses posted revenue of RMB 58.2 million (+96.6% YoY), though the segment remained loss-making.

• Generic drugs revenue declined 15.8% to RMB 502.7 million due to market competition, but segment profit was stable at RMB 168.4 million.

• The group returned to profitability, with net profit attributable to shareholders of RMB 66.2 million, compared to a loss of RMB 68.0 million in the prior year.

Financial highlights

• Operating profit reached RMB 264.4 million, up 142.3% year-over-year.

• Gross profit increased 24.5% to RMB 757.3 million, with gross margin rising to 66.1% from 64.1% YoY.

• Cash and equivalents, including wealth management and term deposits, totaled RMB 3,894.3 million as of June 30, 2025.

• Interim dividend per share was RMB 0.0099, totaling approximately RMB 91.0 million.

• Basic and diluted EPS: RMB 0.011 per share (vs. loss of RMB 0.0036 per share last year).

Outlook and guidance

• Focus on high-growth segments, especially medical aesthetics and innovative drugs, with plans for annual new product launches and global expansion.

• Accelerate product pipeline development, with several major approvals expected in 2025–2027.

• Continued investment in R&D for high-potential products, including GLP-1 dual-target agonists and novel weight loss drugs.

• Generic drug business expected to stabilize and provide steady cash flow.