Hecheng Pharmaceutical Releases Interim Performance, Shareholders to Receive Dividend of 498 Million CNY, Up 24.6% Year-on-Year

Hecheng Pharmaceutical (01681) released its interim performance as of June 30, 2025. During this period, the company achieved revenue of CNY15.69 billion, up 23.7% year-on-year; shareholders are expected to receive a dividend of CNY4.98 billion, up 24.6% year-on-year; and basic earnings per share of CNY0.59; with a provisional interim dividend of CNY0.33 per share.

By product series classification, the sales of kidney-related products increased by approximately 28.0% compared to the same period last year, among which urinary tract infection granules (urinary tract infection) remained the company's flagship product, maintaining its market leading position; women and children's products saw an increase of around 17.5%, becoming the second-largest contributor to revenue; medical imaging contrast agents saw an increase of approximately 22.0%; orthopedic products increased by around 2.1%; skin care products increased by around 19.7%; liver and gallbladder products increased by around 4.6%; and other pharmaceuticals increased by around 5.4%. The overall revenue growth was mainly due to the company's continuous efforts to expand its product market and develop a nationwide sales network.

In the first half of 2025, the company's gross profit was CNY12.09 billion, up 27.6% year-on-year from CNY9.48 billion in the same period last year. The growth in gross profit was mainly driven by revenue growth. In the first half of 2025, the company's average gross margin rate was approximately 77.1%, up 2.4 percentage points from 74.7% in the same period last year, primarily due to the decrease in raw material prices for traditional Chinese medicine.