Hepalink profit drops as one-off gain vanishes and margins shrink

For the six months ended June 30, 2025, Shenzhen Hepalink Pharmaceutical Group Co. Ltd. reported operating revenue of RMB2,791.4 million, a 1.3% decrease year-on-year. Gross profit for the period was RMB809.2 million, a 19.0% decline, with the gross profit margin falling to 29.0% from 35.3%.

Profit attributable to equity holders of the parent decreased by 36.4% to RMB421.9 million. Basic and diluted earnings per share both fell to RMB0.29 from RMB0.45, a decrease of approximately 35.6%. This decline was largely attributed to a positive one-off investment gain recorded in the corresponding period of 2024.

Despite the overall decrease, the finished dose pharmaceutical products business saw sales revenue increase by 21.6% to RMB1,767.9 million, accounting for 63.3% of total revenue, driven by higher sales volume. However, the API business experienced a 40.5% year-on-year decline in sales revenue to RMB444.5 million, primarily due to lower selling prices and intensified market competition. Finance costs decreased by 50.1% to RMB42.2 million, mainly due to lower interest on bank borrowings.