Sihuan Pharmaceutical Holdings Group Ltd (SIHUAN PHARM) (HKEx: 00460) has issued a positive profit alert, indicating a significant improvement in its financial performance for the first half of 2026.
The company announced that it expects to record revenue of at least RMB 1.14 billion for the six months ending June 30, 2026, which is roughly in line with the same period last year. However, net profit for the period is projected to be no less than RMB 210 million, representing a year-on-year increase of at least 217.2%.
The group attributed the substantial profit growth to several key factors. Firstly, the medical aesthetics business maintained stable development, driven by the steady growth of its core product, Letybo® (botulinum toxin), and the continued volume expansion of regenerative aesthetic products (including dermal fillers) and functional medical aesthetics products. This segment is expected to generate revenue of at least RMB 680 million, up over 16.1% year-on-year, with a segment profit of no less than RMB 320 million, remaining a vital profit source for the group.
Secondly, the commercialization process for the innovative drug business continues to advance. The commercialization and internationalization of several approved products have progressed well, leading to a significant surge in combined revenue and a substantial reduction in losses.
Thirdly, investment income from external sources increased notably, primarily due to the successful IPO of a project invested by the group's associates and joint ventures, which is expected to contribute at least RMB 110 million in investment income for the period.
Fourthly, the optimization of the asset structure generated gains. Under pressure from national centralized drug procurement policies, the group has been optimizing its generic drug business and integrating assets. The divestiture of related assets is expected to generate a gain of no less than RMB 140 million in the period, further enhancing overall profitability and resource allocation efficiency.
Furthermore, as the group's two core sectors—medical aesthetics and innovative drugs—have sequentially entered a harvest period and are maintaining high growth, the overall performance structure continues to improve, and profitability is steadily increasing. This marks the group's official entry into a new phase of high-quality development. The board believes that with a clear strategic path, a robust product pipeline, and an accelerating internationalization process, the company will continue to be driven by innovation and differentiated strategies, committed to creating long-term, sustainable returns for its shareholders and investors.