Sihuan Pharmaceutical Holdings Group (460) H2 2025 earnings summary

Executive summary

• Achieved a significant turnaround from loss to profit, with net profit of RMB185.4 million versus a loss of RMB471.5 million in 2024, driven by robust growth in the medical aesthetics segment and improved cost control.

• Achieved a sustainable earnings inflection point with improved earnings quality and strong revenue growth year-over-year.

• Medical aesthetics became the largest revenue and profit contributor, surpassing 50% of total revenue, with both revenue and profit growth exceeding expectations.

• Innovative drug segment entered a harvest phase, with major products commercialized and strong revenue growth, supported by successful IPO and commercialization milestones.

• The company declared a final cash dividend of RMB0.96 cents per share, reflecting confidence in future prospects.

Financial highlights

• Total revenue reached RMB2,618.0 million, up 37.7% year-over-year.

• Medical aesthetics revenue was RMB1,485.3 million, up 99.6% year-over-year; segment profit RMB818.4 million, up 226.0%.

• Innovative drugs and other revenue was RMB176.4 million, up 206.3% year-over-year; segment loss narrowed by 31.6%.

• Generic drug revenue was RMB956.3 million, down 13.0% year-over-year; segment profit RMB282.6 million, down 20.7%.

• Operating profit was RMB607.1 million; net profit attributable to shareholders was RMB185.4 million, reversing prior losses.

• Cash and equivalents, including investments and deposits, totaled RMB4,397.4 million, up 38% year-over-year.

Outlook and guidance

• Strategic focus on dual engines: medical aesthetics and innovative drugs, with continued investment in R&D and global expansion.

• Medical aesthetics expected to maintain high growth, leveraging full-category compliant product matrix and expanded channel coverage.

• Plans to increase medical aesthetics R&D to 60% of total R&D budget over the next three years, targeting regenerative materials, collagen, weight loss, and high-end skin boosters.

• Innovative drug segment to accelerate commercialization, expand indications, and deepen R&D, aiming for sustainable profitability.

• Continued optimization and divestment of underperforming generic drug assets to focus on high-growth segments.