Huapont Life Sciences Co Ltd

Huapont Life Sciences released its 2026 interim report, with net profit attributable to the parent company of 319 million yuan, down 17.79% from the same period last year. Total operating revenue was 5.91 billion yuan, down 0.59% year on year. Net cash inflow from operating activities was 651 million yuan, up 21.37% year on year, marking a third consecutive year of growth. The company's latest debt-to-asset ratio was 42.01%, down 4.15 percentage points from a year earlier. The latest gross margin was 37.83%, up 1.55 percentage points year on year. The latest return on equity was 3.16%, down 0.82 percentage points from a year earlier. Diluted earnings per share were 0.16 yuan, down 17.78% year on year.

Huapont Health's wholly-owned subsidiary Shenyang Xinma Pharmaceutical Co., Ltd. is being pursued by tax authorities for about 38.51 million yuan in taxes and late fees due to false invoicing. According to a company announcement on July 21, 2026, the Second Inspection Bureau of the Shenyang Tax Service of the State Taxation Administration determined that Xinma Pharmaceutical had committed the illegal act of issuing false invoices, and should pay a total of 38,505,063.37 yuan in back taxes, including approximately 5.07 million yuan in value-added tax and surcharges, and approximately 33.43 million yuan in corporate income tax, with a daily late fee of 0.05 percent starting from the date of delinquency. Xinma Pharmaceutical has a registered capital of 40 million yuan, and its 2025 net assets were 79.4674 million yuan, accounting for 0.47 percent of the company's consolidated statements, while its net loss was 14.9476 million yuan, accounting for negative 1.70 percent of the consolidated statements, and it is not a significant subsidiary of the company. The company stated that the back tax payment does not constitute a prior period accounting error and does not involve corrections to prior financial data. The matter has not had a material adverse impact on the company's overall operations and does not trigger mandatory delisting for major violations.