Joincare Pharmaceutical Group Industry Co Ltd

Joincare Pharmaceutical Group disclosed its 2026 interim report. In the first half of the year, it achieved operating revenue of 6.583 billion yuan, down 16.66 percent year on year, and net profit attributable to shareholders of the listed company of 648 million yuan, down 17.49 percent year on year. The decline in performance mainly stemmed from its controlling subsidiary Livzon Pharmaceutical Group, whose operating revenue was about 5 billion yuan, down 20.28 percent year on year, and net profit attributable to the parent was 932 million yuan, down 27.23 percent year on year. The company's gross margin fell from 62.21 percent in the same period last year to 58.70 percent, and its net margin fell from 22.33 percent to 20.75 percent. Revenue from innovative drugs in the respiratory segment accounted for nearly 35 percent, while sales revenue in the health food segment was 304 million yuan, up 25 percent year on year.

Joincare Pharmaceutical Group disclosed its 2026 half-year report. In the first half, it achieved operating revenue of 6.583 billion yuan, down 16.66% year on year. Net profit attributable to shareholders of the listed company was 648 million yuan, down 17.49% year on year. Basic earnings per share were 0.35 yuan. The company said that amid multiple pressures including deepening medical insurance cost control, the regular advancement of national centralized procurement, and the bottom of the active pharmaceutical ingredient industry cycle, operating performance faced phased pressure, but the business structure continued to improve and core competitiveness remained solid.

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.