Sihuan Pharmaceutical Holdings Group (460) H1 2026 earnings summary

Executive summary

• Total revenue for 2026H1 reached RMB 1.161 billion, up 1.3% year-over-year, driven by strong growth in medical aesthetics and innovative drug segments.

• Net profit attributable to owners surged 119% to RMB 224.7 million, with pre-tax profit up 133% and operating profit up 18.6%.

• Medical aesthetics remained the largest profit contributor, while innovative drug commercialization accelerated and generic drugs faced headwinds.

• Medical aesthetics revenue grew 18.5% year-over-year to RMB 693.3 million; innovative drug revenue surged 288.1%–349.1%.

• Generic drug revenue declined 58.9% year-over-year due to policy pressures and market competition.

Financial highlights

• Medical aesthetics segment contributed 60% of total revenue, up from 51% last year.

• Xuanzhu Biopharm and Huisheng Pharm segments combined contributed 22% of revenue, up from 5% last year.

• Pre-tax profit reached RMB 366 million, up 133% year-over-year; net profit reached RMB 224.7 million, up 119%.

• Cash and equivalents, including wealth management and term deposits, totaled RMB 4.018 billion as of 30 June 2026.

• Gross profit margin declined to 58.7% from 66.1% year-over-year, mainly due to generic price adjustments.

Outlook and guidance

• Continued focus on dual engines: medical aesthetics and innovative drugs, with further expansion in product pipeline and global markets.

• Medical aesthetics to deepen high-end market penetration, accelerate pipeline delivery, and expand global sales channels.

• Innovative drug segment to accelerate commercialization, international licensing, and pipeline advancement.

• Continued divestment of generic and non-core assets to optimize structure and resource allocation.