Lionco Pharm Grp Co Ltd

Lingkang Pharmaceutical released its 2026 interim report, with net profit attributable to the parent company of 21.11 million yuan, an increase of 56.85 million yuan compared with the same period last year, achieving a turnaround from loss to profit. The company's total operating revenue was 257 million yuan, up 50.03 percent year on year, marking a third consecutive year of growth. Net cash outflow from operating activities was 14.20 million yuan, narrowing by 24.76 million yuan compared with the same period last year. The company's latest gross margin was 41.31 percent, up 23.43 percentage points year on year; the latest return on equity was 3.29 percent, up 8.16 percentage points year on year.

Lingkang Pharmaceutical's wholly-owned subsidiary Hainan Lingkang Pharmaceutical had its Huperzine A for Injection selected in the 34-drug provincial alliance centralized volume-based procurement. This procurement is led by Henan Province, covering 28 provincial-level administrative regions, with a procurement cycle of two years. The selected specification is 0.2 mg, indicated for benign memory impairment and myasthenia gravis. This product is the only injectable freeze-dried powder approved for marketing in China, and its core ingredient Huperzine A is an original drug developed globally. The company stated that the selection is conducive to expanding channels in public hospitals and increasing market share.

Lingkang Pharmaceutical expects to achieve a net profit attributable to shareholders of around 23 million yuan in the first half of 2026, compared with a loss of 35.7337 million yuan in the same period last year, swinging to a profit year-on-year. The company said the turnaround was mainly due to stepping up promotion of products that won centralized procurement bids, leveraging channel advantages to expand the market for non-centralized-procurement products, and deepening pharmaceutical distribution and agency business by relying on the strengths of its sales system, which drove improved operating performance.

Lingkang Pharmaceutical disclosed its earnings forecast, expecting to achieve a net profit attributable to the parent company of 23 million yuan in the first half of 2026, compared with a loss of 35.7337 million yuan in the same period last year, turning around from loss to profit year-on-year. The company expects operating revenue of 250 million yuan and a non-recurring net profit of 20 million yuan for the same period, compared with a non-recurring net loss of 45.5449 million yuan in the same period last year. The company stated that the improvement in performance was mainly due to increased promotion of varieties won in centralized procurement, leveraging channel advantages to expand the market for non-centralized procurement varieties, and deepening pharmaceutical distribution and agency business.