Hansoh Pharmaceutical Reports H1 2026 Revenue of RMB 8.304 Billion with Innovative Drugs Accounting for 85.4% of Total Revenue

Viewpoint News:On August 26, Hansoh Pharmaceutical Group Company Limited released its interim results announcement for the six months ended June 30, 2026. During the reporting period, the Group’s revenue amounted to approximately RMB 8.304 billion, representing a year-on-year increase of approximately 11.7%; profit amounted to approximately RMB 4.258 billion, a year-on-year increase of approximately 35.8%.

Revenue from innovative drugs amounted to approximately RMB 7.092 billion, representing an increase of approximately 15.4% compared to approximately RMB 6.145 billion in the same period last year, with its proportion of total revenue rising to approximately 85.4%. R&D expenses totaled approximately RMB 1.739 billion, a year-on-year increase of approximately 20.7%, accounting for approximately 20.9% of revenue.

During the reporting period, the increase in profit and basic earnings per share was primarily driven by the combined effect of increased revenue from innovative drugs and other income. Basic earnings per share amounted to approximately RMB 0.70, representing a year-on-year increase of approximately 33.1%. The Board of Directors declared an interim dividend of HK 28.50 cents per share.

Revenue growth was primarily driven by an approximately 21.6% increase in sales revenue from innovative drug products. Cost of sales amounted to approximately RMB 671 million, representing a year-on-year increase of approximately 1.6% and accounting for approximately 8.1% of total revenue. Other income reached approximately RMB 1.318 billion, a year-on-year increase of approximately 127.9%, mainly attributable to significant gains from non-listed equity investments in the life sciences industry through venture capital funds during the period.

Selling and distribution expenses amounted to approximately RMB 1.861 billion, representing a year-on-year increase of approximately 2.3%; administrative expenses amounted to approximately RMB 326 million, representing a year-on-year decrease of approximately 4.8%; income tax expenses amounted to approximately RMB 751 million, representing a year-on-year increase of approximately 35.8%.

Net cash inflow from operating activities amounted to RMB 2.337 billion, with capital expenditures of RMB 303 million. Net cash flow from financing activities was primarily attributable to the net proceeds of approximately HKD 4.640 billion from the issuance of convertible bonds. As of June 30, 2026, net current assets were approximately RMB 32.968 billion, the current ratio was approximately 4.9, cash and bank balances totaled RMB 37.383 billion, and the debt-to-asset ratio was approximately 19.0%.

As of June 30, 2026, the Group had 9,643 full-time employees, with employee costs amounting to approximately RMB 1.816 billion. During the reporting period, the Company granted a total of 4,992,330 restricted share units under the Restricted Share Unit Plan, representing an equivalent number of shares, among which 109,010 were granted to Dr. Lü Aifeng, an executive director.

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