The United Laboratories International (3933) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB6,165.9 million, down 18.0% year-over-year, with gross profit decreasing 46.0% to RMB2,119.5 million and EBITDA falling 66.5% to RMB920.8 million.

• Profit attributable to owners was RMB347.6 million, an 81.6% decline year-over-year; basic EPS was RMB17.62 cents, down from RMB104.26 cents.

• All business segments faced challenging market conditions, with finished products revenue dropping 27.9% and intermediate products down 14.2%, while bulk medicine grew 5.0%.

• R&D investment totaled RMB469.1 million, down 14.8% year-over-year, with 40 new drug products and 67 animal healthcare products under development.

• No interim dividend was declared for H1 2026, compared to RMB16 cents per share in the prior year.

Financial highlights

• Segmental revenue: intermediate products RMB1,976.5m (-14.2%), bulk medicine RMB3,148.4m (+5.0%), finished products RMB2,866.6m (-27.9%).

• Segmental profit: intermediate products RMB191.4m (-69.8%), bulk medicine RMB79.7m (-68.2%), finished products RMB398.0m (-73.6%).

• Finance costs rose 116.1% YoY to RMB44.9 million due to increased project financing.

• Net bank balances and cash after deducting borrowings and supplier finance: RMB3,416.0 million.

• Basic EPS: RMB17.62 cents (down 83.1% YoY).

Outlook and guidance

• The Group will accelerate R&D and clinical development of innovative products, deepen vertical integration, and pursue international expansion.

• Industry transformation and policy support for innovative drugs are expected to drive future growth.

• Remaining proceeds from the 2025 share placing are expected to be fully utilised by 2028.