Zhejiang Huahai Pharmaceutical (600521) Q1 2026 earnings summary

Executive summary

• Net profit attributable to shareholders rose 35.90% year-over-year, mainly due to the disposal of a 67% stake in a subsidiary, generating significant non-recurring gains.

• Operating revenue decreased by 1.40% compared to the same quarter last year, reflecting ongoing pricing pressure and intensified competition in the domestic formulation business.

Financial highlights

• Operating revenue: ¥2,335.39 million, down 1.40% year-over-year.

• Net profit attributable to shareholders: ¥404.18 million, up 35.90% year-over-year.

• Net profit excluding non-recurring items: ¥136.03 million, down 52.19% year-over-year.

• Operating cash flow: ¥398.63 million, up 104.31% year-over-year.

• Basic and diluted EPS: ¥0.27, up 28.57% year-over-year.

• Total assets at quarter-end: ¥22,216.25 million, up 3.32% from year-end.

• Shareholders’ equity: ¥9,846.96 million, up 4.28% from year-end.

Outlook and guidance

• Domestic formulation business continues to face pressure from national procurement policies and intensified competition, with new products yet to contribute at scale.

• Exchange rate fluctuations, particularly USD volatility, have negatively impacted profits.