Zhejiang Huahai Pharmaceutical Co Ltd

CFMoto announced that its wholly-owned subsidiary CFP has received a total of US$38.6079 million in IEEPA tariff refunds from the United States, equivalent to approximately 262 million yuan. This is the highest refund amount received by any A-share company based on the US International Emergency Economic Powers Act. After accounting for income tax expenses of the US subsidiary, the refund is expected to boost the company's 2026 net profit by approximately 183 million yuan, representing 10.95% of the most recent audited net profit. The refunds stem from a US Supreme Court ruling in February 2026 that invalidated IEEPA tariffs, with US Customs initiating refunds on April 20. As of August 12, at least nine A-share companies have disclosed receiving refunds, totaling over US$90 million. CFMoto leads in refund amount, while Huahai Pharmaceutical, Guizhou Tyre, and Yindu Kitchen Equipment each received over US$10 million.

After the proposed results of the 12th national centralized drug procurement were announced, nearly 40 A-share listed pharmaceutical companies had disclosed bid-related announcements as of the evening of August 3, with market attention continuing to heat up. This round of procurement showed clear divergence. Barefoot players like Kelun Pharmaceutical and Huahai Pharmaceutical broke through with newly approved varieties. Kelun Pharmaceutical had 14 product specifications proposed for selection, with 9 varieties having no sales revenue in 2025. Huahai Pharmaceutical had 4 proposed winning products, 3 of which were newly approved in the second quarter of 2026. Meanwhile, Huadong Medicine unexpectedly lost the bid for its core product indobufen tablets. The 4 products it failed to win had combined sales revenue of about 4.634 billion yuan in 2025, accounting for 10.62 percent of the company's total revenue, far exceeding the 2.076 billion yuan from winning products. Its market share in public hospitals faces reshaping. Companies generally view winning national procurement bids as an opportunity to quickly open the domestic sales market, but the decline in hospital share for lost varieties has raised market concerns about the short- to medium-term performance of related firms.

This evening, nearly 100 companies listed on the Shanghai Stock Exchange released a flurry of positive signals, spanning share buybacks and stake increases, improving business performance, proposed selections in centralized drug procurement, and interim dividend returns. On the buyback and stake increase front, two new buyback plans were added by Bethel Automotive Safety Systems and Shandong Hi-Speed, with a combined proposed buyback cap of 400 million yuan. Soochow Securities disclosed a controlling shareholder's stake increase plan, with a proposed increase amount not exceeding 200 million yuan, while another 76 companies simultaneously disclosed progress updates on buybacks and stake increases. At the operational level, results of the 12th round of national centralized drug procurement were gradually announced, with multiple Shanghai-listed pharmaceutical companies including Harbin Pharmaceutical Group, Zhejiang Huahai Pharmaceutical, China Resources Double-Crane Pharmaceutical, North China Pharmaceutical, Jiangsu Lianhuan Pharmaceutical, Aurisco Pharmaceutical, and Jianfeng Group declaring that their products have been proposed for selection. In terms of investor returns, four companies—WuXi AppTec, Zhejiang Jiuzhou Pharmaceutical, Kingfa Sci. & Tech., and Jasan Group—unveiled interim dividend plans on the same day. Among them, WuXi AppTec plans to distribute a cash dividend of 5.1 yuan per 10 shares, with the total interim dividend expected to exceed 1.5 billion yuan. Additionally, the controlling shareholder of Lujiazui voluntarily committed not to transfer or reduce its holdings in any way within the next 12 months, coinciding with the unlocking of restricted shares from the company's private placement.

Huahai Pharmaceutical announced that on July 31, 2026, it received a drug registration certificate from the National Medical Products Administration for telmisartan and hydrochlorothiazide tablets. The product contains 40 milligrams of telmisartan and 12.5 milligrams of hydrochlorothiazide per tablet, is classified as a chemical drug category 4, and is indicated for the treatment of essential hypertension. Huahai Pharmaceutical stated that this approval further enriches its product pipeline and helps enhance market competitiveness, but product manufacturing and sales are susceptible to uncertainties such as policy and market conditions, and investors are advised to be aware of the risks.

A subsidiary of Huahai Pharmaceutical recently received the Drug Registration Certificate for Telmisartan and Hydrochlorothiazide Tablets approved and issued by the National Medical Products Administration. The drug is used to treat essential hypertension, and its approval for production as a Category 4 chemical drug is deemed equivalent to passing the consistency evaluation. In 2025, the domestic market sales amount was approximately 187 million yuan, and the company's R&D investment was about 5.73 million yuan. The approval of this product will further enrich the company's product line and enhance market competitiveness.

Huahai Pharmaceutical's majority-owned subsidiary Huaotai has received marketing approval for Reciceptimab Injection, brand name Huayijing. The drug is indicated for the treatment of generalized pustular psoriasis flares in adults weighing 40 kg or more. It is a Class 1 therapeutic biological product, with a strength of 120 mg per 2 ml vial. The company's total R&D investment in the Reciceptimab Injection project amounts to approximately 259 million yuan. The drug is regarded as the first IL-36R monoclonal antibody drug in China, marking a significant advance for the company in the biologics field and expected to strengthen its innovative drug pipeline and R&D competitiveness.

Huahai Pharmaceutical announced that its subsidiaries Huaotai and Huabo Biotech have received a Drug Clinical Trial Approval Notice from the National Medical Products Administration for the addition of a subcutaneous injection route for the HB0043 project. The approval allows clinical trials for hidradenitis suppurativa. The drug is the world's first bispecific antibody targeting both IL-17A and IL-36R, and is expected to overcome the limitations of existing single-target therapies. To date, the company has invested approximately 119 million yuan in research and development for this project.

Huahai Pharmaceutical announced that the company recently received the Drug Registration Certificate for Ferrous Succinate Tablets approved and issued by the National Medical Products Administration. The drug is used for the prevention and treatment of iron deficiency anemia. Approval for production as a Category 3 chemical drug is deemed equivalent to passing the consistency evaluation. In 2025, the domestic market sales of this drug amounted to approximately 408 million yuan, and the company's R&D investment was about 5.15 million yuan. This approval will further enrich the company's product line and enhance market competitiveness.

The pharmaceutical sector rallied strongly during trading on the 6th, with weight-loss drug and innovative drug concepts standing out. Shouyao Holdings and Gan & Lee Pharmaceuticals were among multiple stocks that hit their daily limit up. As of press time, Shouyao Holdings surged by the 20 percent daily limit, Hotgen Biotech rose about 14 percent, Mabwell Bioscience, InventisBio, and Shanghai Yizhong Pharmaceutical gained over 10 percent, Gan & Lee Pharmaceuticals, Huahai Pharmaceutical, and Menovo Pharmaceutical also hit their daily limit up, BeiGene and Pharmaron climbed over 7 percent, and Hengrui Medicine advanced more than 5 percent. In the Hong Kong market, Duality Biologics, InnoCare Pharma, and Sino Biopharmaceutical rose over 10 percent, while WuXi XDC and Pharmaron gained more than 5 percent. On the news front, the National Medical Products Administration is soliciting public comments on optimizing the review and approval of cell and gene therapy drugs, encouraging clinically value-oriented R&D innovation, focusing on key areas such as malignant tumors and rare diseases, and placing eligible drugs into a 30-day review and approval pathway. Meanwhile, the overseas expansion of innovative drugs is accelerating. Since 2026, the total value of China's innovative drug license-out deals has reached 94.3 billion US dollars, up 81 percent year-on-year, with upfront payments reaching 5.5 billion US dollars, up 124 percent year-on-year, reflecting growing overseas recognition of China's innovative drug pipeline. CICC noted that leading innovative drug companies are shifting from the R&D investment phase into a positive cycle of commercial scale-up and overseas licensing revenue realization.