Zhejiang Huakang Pharmaceutical Co Ltd

Huakang Shares released its 2026 interim report, with net profit attributable to the parent company of 41.964 million yuan, down 68.61% from the same period last year. Total operating revenue was 2.481 billion yuan, up 32.98% year-on-year, marking a second consecutive year of growth. Net cash inflow from operating activities was 107 million yuan, up 28.92% year-on-year. The company's latest asset-liability ratio was 59.91%, gross margin was 12.15%, ROE was 1.32%, and diluted earnings per share was 0.14 yuan.

Huakang Shares released its 2026 semi-annual report. First-half operating revenue was 2.481 billion yuan, up 32.98% year on year, but net profit attributable to the parent was only 41.964 million yuan, down 68.61% year on year. After excluding non-recurring items, net profit attributable to the parent was 33.0809 million yuan, a sharp drop of 72.78% from 122 million yuan in the same period last year. The company's gross margin was 12.15%, down 5.65 percentage points year on year. Period expenses rose to 233 million yuan, of which financial expenses were 68.9028 million yuan, up 87.55% year on year, mainly because interest expenses on convertible bonds continued to be recognised and foreign exchange losses increased substantially. As of the end of June 2026, the book value of the company's accounts receivable reached 723 million yuan, an increase of 22.97% from the end of 2025, with the top five customers accounting for 46.94% of total accounts receivable.

Huakang Chemical disclosed a performance forecast, estimating net profit attributable to the parent for the first half of 2026 at 41.5 million yuan to 51.5 million yuan, a year-on-year decline of 61.48% to 68.96%. Deducted non-recurring net profit is expected to be 32.5 million yuan to 42.5 million yuan, down 65.02% to 73.25% year-on-year. The company stated that the decline in performance was mainly due to the large-scale production launch of its wholly-owned subsidiary Zhoushan Huakang Biotechnology since the second quarter of 2025. In order to seize market share, strategy adjustments led to a higher proportion of low-margin liquid product sales, causing an overall decline in comprehensive gross margin. At the same time, continuous accrual of convertible bond interest expenses and foreign exchange rate fluctuations pushed up financial costs.