HAIXI PHARMA (Fujian Haixi Pharmaceuticals Co., Ltd.) reported interim results for the six months ended 30 June 2026, showing that top-line growth continued but profit retreated as the company accelerated investment in innovative drugs.
Revenue edged up 3.85 % year on year to RMB 311.62 million (USD 43.0 million), fuelled by stable demand for its 17 commercialised generic drugs, six of which secured renewed volume-based procurement (VBP) contracts through to end-2028. The generic portfolio—led by cardiovascular and digestive therapies such as Anbili, Haihuitong and Ruiantuo—accounted for virtually all reported sales, with three products newly entering or renewing national VBP schemes during the period.
Net profit attributable to shareholders fell 24.82 % to RMB 81.05 million (USD 11.2 million) as the group increased research and development spending by 50.32 % to RMB 40.76 million (USD 5.6 million). Management attributed the earnings decline to heavier clinical-trial outlays and higher depreciation tied to the ramp-up of the Changle manufacturing facility, which is still scaling towards its 2 billion-tablet annual capacity.
Segment data highlight the strategic trade-off: the Generic Drugs unit generated RMB 148.25 million in profit, while the Innovative Drugs division posted a RMB 32.91 million loss. Key pipeline assets progressed, including C019199, a multi-target oncology immunomodulator now in Phase III osteosarcoma trials; HXP056, a potential first-in-class oral therapy for retinal diseases in Phase II; HXP089 for glioblastoma with IND approval and a planned Phase I/II start in H2 2026; and HXP090 for idiopathic pulmonary fibrosis targeting an IND filing in 2027. The company’s patent estate reached 39 granted patents globally.
Operating costs increased 39.02 % to RMB 56.46 million, reflecting lower factory utilisation during the transition from contract manufacturing to in-house production. Selling expenses were broadly stable at RMB 99.36 million, while administrative costs rose 9.41 % to RMB 12.61 million, partly on post-listing professional fees. Finance expenses surged to RMB 11.76 million due to foreign-exchange losses.
The balance sheet remains robust: cash and cash equivalents expanded to RMB 1.02 billion, supported by proceeds from the October 2025 Hong Kong listing. The gearing ratio stood at 15.11 %, and unutilised IPO proceeds totalled HKD 766.58 million earmarked primarily for R&D, collaborations and manufacturing upgrades.
Looking ahead, management reiterated its “fast-follow fuels innovation, innovation shapes the future” strategy, aiming to commercialise first-in-class therapies, broaden its global patent portfolio and pursue multinational partnerships while leveraging cash flows from generics to fund innovation.