Joincare reports mixed financial results, strategic shifts in H1 2025

Joincare Pharmaceutical Group Industry reported a 4.08% decline in revenue for the first half of 2025, but achieved a 1.10% increase in net profit attributable to shareholders. This growth was primarily driven by synergy across business segments and operational optimization. While the chemical formulations segment experienced a revenue decrease due to generic drug centralized procurement and market competition, the raw materials and intermediates segment maintained stable performance despite price fluctuations, supported by internationalization strategies. The health food segment saw notable growth, achieving a 35% increase from a high base last year, and Livzon Biologics narrowed its losses through business restructuring and cost reduction.

The company's R&D expenditure for the first half of 2025 was approximately RMB 610 million, primarily directed towards innovative drug development. Despite a proportional decrease in overall R&D expenses, Joincare affirmed its commitment to maintaining R&D investment aligned with strategic goals, focusing on high-clinical-value and commercially promising varieties in respiratory and pain management. Joincare aims to offset the pressure from generic drug centralized procurement through the gradual approval and launch of innovative drugs, which are expected to improve the performance of the chemical formulations segment over time.