Zhejiang Huahai Pharmaceutical (600521) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2025 was RMB 6.41 billion, down 11.57% year-over-year, with Q3 revenue at RMB 1.89 billion, down 10.70% compared to the same quarter last year.

• Net profit attributable to shareholders for the first nine months was RMB 380.36 million, a 63.12% decrease year-over-year; Q3 net loss attributable to shareholders was RMB -29.13 million.

• The company is undergoing a strategic transformation, increasing R&D investment by about 54% year-over-year, impacting short-term profitability.

Financial highlights

• Operating cash flow for the first nine months was RMB 652.39 million, down 65.25% year-over-year.

• Basic and diluted EPS for the first nine months were both RMB 0.26, down 63.38% year-over-year; Q3 EPS was -0.02.

• Gross margin for the API segment remained stable at approximately 48.45%.

• Total assets at quarter-end were RMB 21.15 billion, up 4.40% from the previous year-end.

• Shareholders’ equity increased 6.88% to RMB 9.51 billion.

Outlook and guidance

• Domestic finished dosage business faces continued pricing pressure and intensified competition due to expanded centralized procurement policies.

• U.S. finished dosage business saw slight declines in sales and profit due to tariffs and market competition.

• API business continues to face overcapacity and price pressure, with new product commercialization slower than expected.