Hunan Er Kang Pharmaceutical

Erkang Pharmaceutical released its 2026 half-year report on August 26. The company's first-half operating revenue was 568 million yuan, down 16.8% year on year, but net profit attributable to the parent was 44.47 million yuan, up 18.2% year on year. Net profit attributable to the parent after deducting non-recurring items was 41.19 million yuan, up 24.7% year on year. Net operating cash flow was negative 154 million yuan, down 436.0% year on year, and earnings per share were 0.0216 yuan. In the second quarter, the company's operating revenue was 320 million yuan, down 2.5% year on year, and net profit attributable to the parent was 31.36 million yuan, a sharp year-on-year increase of 229.3%. As of the end of the second quarter, the company's total assets were 4.98 billion yuan, up 2.4% from the end of the previous year, and net assets attributable to the parent were 4.022 billion yuan, down 0.3% from the end of the previous year. The company's business covers excipients, active pharmaceutical ingredients, finished drugs, and new energy materials. In excipients, it continues to develop products such as pharmaceutical ethanol and pharmaceutical glycerin. In new energy materials, it is increasing its layout in the lithium carbonate industry chain and adopting a production-based-on-sales strategy to respond to market changes.

Erkang Pharmaceutical recently received the Chemical Active Pharmaceutical Ingredient Marketing Authorization Approval Notice for sodium hydroxide API issued by the National Medical Products Administration. The approval is valid until May 11, 2031, and authorizes the company to manufacture this product domestically. Sodium hydroxide is a pH adjuster. This approval will further enrich the company's API portfolio, enhance market competitiveness, and have a positive impact on future market expansion and sales.