Huadong Medicine Co (000963) investor relations material

Executive summary

• Operating revenue for H1 2026 reached RMB 22.07 billion, up 1.81% year-over-year, with net profit attributable to shareholders at RMB 1.86 billion, up 2.53% year-over-year. Net profit excluding non-recurring items rose 5.44% year-over-year.

• All four business segments—pharmaceutical industry, pharmaceutical distribution, aesthetic medicine, and industrial microbiology—advanced in a coordinated manner, with core businesses maintaining stable performance.

• The company continued to implement its innovation-driven strategy, expanding its innovative product pipeline and achieving significant R&D milestones.

Financial highlights

• Operating revenue: RMB 22.07 billion (+1.81% YoY); net profit attributable to shareholders: RMB 1.86 billion (+2.53% YoY); net profit excluding non-recurring items: RMB 1.86 billion (+5.44% YoY).

• Net cash flow from operating activities: RMB 2.50 billion (+1.73% YoY).

• Basic and diluted EPS: RMB 1.0610 (+3.08% and +2.55% YoY, respectively).

• Total assets: RMB 39.98 billion (+2.40% from end-2025); net assets attributable to shareholders: RMB 25.44 billion (+2.54%).

• Cash dividend of RMB 3.50 per 10 shares approved, totaling RMB 613.8 million.

Outlook and guidance

• The company expects continued high-quality growth, driven by innovation, international expansion, and a diversified product pipeline.

• The aesthetic medicine segment is anticipated to recover as new products gain traction and market confidence improves.

• Ongoing focus on R&D, compliance, and operational efficiency to support sustainable development.