On August 20, HENGRUI PHARMA fell 8.55% in regular trading, trading at HK$50.85/share, with turnover of HK$109 million. The selloff was triggered by the company's disappointing first-half earnings released the prior evening.

The drugmaker reported H1 revenue of RMB 15.456 billion, down 1.94% year-over-year, while net profit attributable to shareholders was RMB 4.465 billion, up just 0.34%. More critically, non-GAAP net profit fell 12.71% to RMB 3.73 billion, and operating cash flow plunged 53.8% to RMB 1.987 billion, signaling deteriorating earnings quality. Generic drug revenue dropped 16.07% to RMB 5.139 billion, and licensing income declined 28.6% to RMB 1.422 billion. Although innovative drug sales grew 16.4% to RMB 8.809 billion, the growth was insufficient to offset weakness elsewhere. The company simultaneously announced a RMB 1-2 billion A-share buyback plan for employee stock ownership purposes at a maximum price of RMB 81.78 per share.

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