Hua Medicine posts significant profit surge, revenue growth in H1 2025

Hua Medicine recorded a profit before tax of RMB1,183.9 million for the six months ended June 30, 2025, a significant increase of approximately RMB1,326.2 million year-on-year. This turnaround was primarily driven by a 112% rise in revenue to RMB217.4 million, fueled by sales of approximately 1,764,000 packs of HuaTangNing, up 108% from the previous year. Gross profit more than doubled to RMB117.8 million, with an improved gross margin of 54.2% due to increased production scale and efficiency.

A key factor in the profit surge was the one-time release of RMB1,243.5 million in previously deferred income following the termination of an exclusive promotion service agreement with Bayer on January 1, 2025. This transition to full self-commercialization also impacted selling expenses, which increased only 5% to RMB64.2 million despite the substantial revenue growth, representing a reduced 29.5% of revenue compared to 59.5% in the prior period.

Research and development expenses decreased by RMB54.0 million to RMB65.8 million, mainly due to the advancement of the 2nd generation GKA clinical study and the completion of major validation projects. Cash balances stood at RMB1,022.8 million as of June 30, 2025. The company also filed for registration of dorzagliatin 75 mg in Hong Kong, aiming to expand its market presence.