Sihuan Pharmaceutical (HKEX: 00460) reported a sharp earnings rebound for the six months ended 30 June 2026, underscoring the success of its “medical aesthetics + innovative drugs” dual-engine strategy.
Financial Highlights • Revenue rose 1.30% year on year to RMB1.16 billion.
• Gross profit slipped 10.00% to RMB681.66 million; gross margin narrowed to 58.7% (H1 2025: 66.1%) after price adjustments in the generic portfolio.
• Operating profit increased 18.60% to RMB313.47 million, bolstered by a RMB154.23 million gain from disposal of a subsidiary.
• Profit before tax surged 133.30% to RMB365.98 million, aided by a RMB110.74 million share of profit from an associate.
• Net profit attributable to shareholders doubled to RMB224.70 million (+119.0%), while total group net profit reached RMB212.58 million (H1 2025: RMB66.19 million).
• Basic earnings per share rose to RMB2.49 cents.
• Cash, cash equivalents, wealth-management products, pledged and time deposits totalled RMB4.02 billion.
Segment Performance • Medical Aesthetics: Revenue advanced 18.50% to RMB693.35 million, driven by continued growth of flagship botulinum toxin Letybo® and higher sales of PLLA/PCL regenerative fillers and skin-booster products. Segment profit before tax grew 10.90% to RMB343.24 million, reinforcing the business as the group’s core earnings engine.
• Innovative & Other Medicines: Revenue soared 349.10% to RMB261.39 million as commercialisation of CDK inhibitor Xuan Yue Ning, ALK inhibitor Xuan Fei Ning and PPI An Jiu Wei accelerated; segment loss before tax narrowed to RMB75.34 million (-32.1% YoY).
• Generic Medicines: Revenue dropped 58.90% to RMB206.49 million amid intensified price competition and volume-based procurement, leading to a segment loss before tax of RMB74.07 million.
Cost & Expense Dynamics • R&D spending fell 30.90% to RMB105.59 million as key pipelines transitioned from development to commercial stages.
• Distribution and administrative expenses declined 6.10% and 2.20% respectively, reflecting streamlined operations.
Balance Sheet & Liquidity • Net assets stood at RMB6.96 billion.
• Interest-bearing bank borrowings were RMB881.94 million; borrowings-to-equity ratio eased to 14.9%.
• Capital expenditure reached RMB142.49 million, mainly for plant, equipment and intangible assets.
Dividends & Share Buy-back No interim dividend was declared. During the period, Sihuan repurchased 20 million shares for approximately HKD21.62 million, held as treasury shares for potential future use.
Outlook & Strategy Management reaffirmed commitment to the dual growth strategy: expanding the medical aesthetics product pipeline and accelerating commercialisation of innovative drugs, while continuing the planned divestment of lower-margin generic assets. No significant events were reported after 30 June 2026.