Zhejiang Jiuzhou Pharmaceutical has disclosed its financial results for the first half of 2026. Operating revenue reached 2.575 billion yuan, down 10.30 percent year-on-year, while net profit attributable to shareholders fell 26.33 percent to 387 million yuan. Net cash flow from operating activities was 553 million yuan, a decrease of 34.52 percent, mainly due to lower receipts from sales. Among accounts receivable, the single largest customer accounted for 736 million yuan at period-end, representing 65.22 percent of the combined total of accounts receivable and contract assets. The top five customers together made up 72.29 percent, highlighting the company's continued heavy dependence on one major client. Overseas markets contributed 79.53 percent of first-half revenue, but revenue from those markets declined 10.72 percent year-on-year. Financial expenses surged 315.17 percent to 16 million yuan because of foreign exchange losses. Revenue from the CDMO business was 1.973 billion yuan, accounting for 76.62 percent of total operating revenue, underscoring an equally pronounced reliance on a single business line. Among comparable listed companies, Jiuzhou Pharmaceutical's revenue has barely grown over the past four years, coming in at 5.445 billion yuan in 2022, 5.523 billion yuan in 2023, 5.161 billion yuan in 2024, and 5.509 billion yuan in 2025. Net profit attributable to shareholders peaked at 1.033 billion yuan in 2023 before retreating. The company is advancing a key customer strategy and building a specialty process platform, but collection efficiency dropped sharply in the first half. The choice between protecting earnings or protecting customers may become clear in the second half.
Zhejiang Jiuzhou Pharm Co LtdFirst-half revenue and profit declined, with net profit down 26.33% and cash flow down 34.52%.
SMO ClinPlus Co. Ltd.