Livzon Pharmaceutical Group Inc

Livzon Group released its 2026 interim report, with net profit attributable to the parent company at 932 million yuan, down 27.23% from the same period last year. Total operating revenue was 5 billion yuan, down 20.28% year-on-year. Net cash inflow from operating activities was 1.763 billion yuan. The latest asset-liability ratio was 38.12%, gross margin was 61.28%, ROE was 6.97%, and diluted earnings per share was 1.05 yuan.

Livzon Group released its 2026 half-year report, showing first-half net profit attributable to the parent of 932 million yuan, down 27.2% year on year. Operating revenue was 5.0 billion yuan, down 20.3% year on year. Net profit attributable to the parent excluding non-recurring items was 890 million yuan, down 29.3% year on year. Net operating cash flow was 1.763 billion yuan, up 4.5% year on year. Second-quarter operating revenue was 2.13 billion yuan, down 31.1% year on year, and net profit attributable to the parent was 355 million yuan, down 44.9% year on year. The company said sales revenue from its chemical preparations business fell 25.33% due to medical insurance price cuts and national volume-based procurement. Sales revenue from traditional Chinese medicine preparations and other business segments fell 34.83%, mainly because the incidence of influenza and respiratory diseases declined in the first quarter, reducing demand for related products.

Joincare disclosed that as of July 31, 2026, its total guarantee balance stood at 2.069 billion yuan, accounting for 13.63% of its latest audited net assets. This includes 1.842 billion yuan in guarantees for wholly owned and controlled subsidiaries, and 227 million yuan in guarantees for its joint venture Jinguan Electric Power, with no overdue external guarantees. In July 2026, the company and its controlled subsidiary Livzon Pharmaceutical Group signed multiple guarantee contracts with China Merchants Bank, ICBC, and Bank of Communications, involving entities such as Joincare Haibin Pharmaceutical, Jiaozuo Joincare Biological Products, Shenzhen Taitai Pharmaceutical, Xinxiang Haibin Pharmaceutical, Livzon Group Livzon Pharmaceutical Factory, Sichuan Guangda Pharmaceutical, Zhuhai Livzon Pharmaceutical Trading, Livzon Group Ningxia Pharmaceutical, Livzon Group New Beijiang Pharmaceutical, and Jiaozuo Livzon Synthetic Pharmaceutical. Individual guarantee amounts ranged from 30 million yuan to 302 million yuan. The company's 2025 revenue was 15.216 billion yuan, down 2.58% year-on-year, with net profit attributable to shareholders of 1.336 billion yuan, down 3.68% year-on-year, marking the third time in recent years that both revenue and net profit declined. In the first quarter of 2026, revenue was 3.721 billion yuan, down 8.99% year-on-year, and net profit attributable to shareholders was 415 million yuan, down 4.78% year-on-year. As of the close on August 4, the company's stock had fallen nearly 12% for the year.