Consun Pharmaceutical Group (1681) investor relations material

Executive summary

• Revenue for H1 2026 rose 13.8% year-over-year to RMB1,784.7 million, driven by expansion of the sales network and strong sales in kidney, gynaecology, and hepatobiliary medicines.

• Net profit attributable to equity shareholders increased 19.5% year-over-year to RMB595.3 million, with basic EPS up 20.3% to RMB0.71.

• Gross profit margin improved to 81.4% from 77.1% due to supplier management optimization and lower raw material costs.

• The group maintained its operational focus on growth, efficiency, and execution, advancing innovative drug R&D and overseas clinical trials.

• Ranked 91st in the “China Pharmaceutical Industry Top 100” for the first time.

Financial highlights

• Gross profit grew 20.1% year-over-year to RMB1,452.1 million, with gross margin up 4.3 percentage points to 81.4%.

• Other income doubled to RMB47.9 million, mainly due to reduced exchange losses, government grants, and increased gains from wealth management products.

• Distribution costs rose 7.8% to RMB555.8 million, while administrative expenses increased 35.7% to RMB241.0 million, reflecting organizational optimization and higher R&D spending.

• Income tax expense surged 209.3% to RMB100.2 million, with the effective tax rate rising to 14.3% due to expiry of tax exemptions and higher withholding tax.

• Net cash from operating activities increased 58.6% to RMB781.4 million.

Outlook and guidance

• The group will continue to focus on core business, streamline operations, and leverage digital-intelligent tools to enhance efficiency.

• Plans to deepen market penetration in primary healthcare and capitalize on differentiated clinical value.

• Continued investment in R&D and digital-intelligent operational tools is planned.

• Management expects to capitalize on industry development opportunities and maintain high-quality growth.

• The pharmaceutical industry is entering a value-driven, compliance-focused phase, with growth shifting toward primary healthcare.