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.
Zhejiang Huakang Pharmaceutical Co LtdCompany forecasts 61-69% drop in H1 2026 net profit due to low-margin product mix and higher financial costs.
Subsidiary's large-scale production launch and strategy shift to low-margin liquid products are key causes of parent's profit decline.