Guiyang Xintian Pharmaceutical Co Ltd

Xintian Pharmaceutical released its 2026 interim report. Net profit attributable to the parent in the first half was 4.86 million yuan, down 15.7% year on year. Operating revenue was 332 million yuan, down 7.4% year on year. Net profit attributable to the parent after deducting non-recurring items was 3.98 million yuan, up 11.3% year on year. Net operating cash flow was 110 million yuan, up 63.8% year on year. Second-quarter net profit attributable to the parent was 1.37 million yuan, down 13.5% year on year. The company said its overall operations remained stable, and it optimized its product structure and market layout to respond to policy changes in the traditional Chinese medicine industry and adjustments in market demand.

Guiyang Xintian Pharmaceutical Co., Ltd. announced that it has written off inventory nearing expiry or affected by product upgrades, along with uncollectible accounts receivable, totaling 1.0926 million yuan, to be recorded in the period from January 1 to July 31, 2026. Of this, inventory write-offs amounted to 1.0327 million yuan, mainly due to near-expiry items and product upgrades, while accounts receivable write-offs totaled 59,900 yuan, arising from historical settlement differences in business transactions. The company stated that this write-off will reduce total profit for 2026 by 1.0926 million yuan, complies with the Accounting Standards for Business Enterprises, and is based on the principle of prudence, enabling a fairer reflection of the company's asset position.