Harbin Medisan Pharmaceutical Co., Ltd. (Harbin Medisan, 002900.SZ) disclosed its third-quarter 2025 financial report, revealing a significant decline in performance. The company reported a net loss exceeding 100 million yuan, marking a year-on-year drop of over 900%.
The report highlights that Harbin Medisan has been grappling with persistent losses since the beginning of 2025, with weakness in its core pharmaceutical business being a key factor behind the financial strain.
**Declining Revenue and Profits** Harbin Medisan specializes in the R&D, production, and sales of chemical drug preparations and specialty APIs. Its product portfolio includes large-volume injections, small-volume injections, freeze-dried powder injections, and solid preparations, covering therapeutic areas such as the nervous system, cardiovascular, musculoskeletal, and anti-infectives.
Financial data shows that the company’s revenue for the first three quarters of 2025 stood at 581 million yuan, down 30.75% year-on-year. Net profit attributable to shareholders recorded a loss of 209 million yuan, plunging 614.61% compared to the same period last year.
In Q3 alone, revenue fell 46.83% to 168 million yuan, while net profit attributable to shareholders plummeted 913.69% to a loss of 116 million yuan. After excluding non-recurring gains and losses, the adjusted net loss widened to 121 million yuan, down 1,113.19% year-on-year.
On October 25, the company disclosed an asset impairment provision announcement, stating that it had conducted impairment tests on accounts receivable, other receivables, bills receivable, and inventory as of September 30, 2025. Based on prudent accounting principles, it recognized impairment losses totaling 52.2 million yuan. After accounting for deferred tax effects, this reduced Q1-Q3 net profit attributable to shareholders by 46.15 million yuan, with no impact on cash flow.
**Pharmaceutical Sector Weakness Drags Performance** Harbin Medisan’s financial downturn began in 2024, with losses deepening through the first three quarters of 2025. The underperformance of its pharmaceutical segment has been a major contributor.
The company’s 2024 annual report showed revenue of 1.132 billion yuan, down 4.58% year-on-year, while net profit attributable to shareholders dropped 20.35% to 58.68 million yuan.
By Q1 2025, Harbin Medisan slipped into the red, posting a 16.93% revenue decline to 205 million yuan and a net loss of 28.85 million yuan (down 253.52% YoY). Adjusted net loss reached 29.33 million yuan, plunging 676.84%.
Losses accelerated in H1 2025, with revenue falling 21.08% to 413 million yuan and net loss widening to 92.39 million yuan (down 451.68% YoY). Adjusted net loss stood at 89.2 million yuan, down 522.03%.
Harbin Medisan attributed the 2024 decline to reduced income and margins from products affected by national volume-based procurement (VBP), intensified competition for non-VBP drugs leading to price cuts, and rising operating costs due to product mix adjustments.
The pharmaceutical segment, accounting for 87.34% of total revenue in 2024 (989 million yuan, down 13.48% YoY), was a primary drag. In H1 2025, pharmaceutical sales fell 24.25% to 356 million yuan, representing 86.08% of total revenue.
Facing mounting pricing pressures in the pharmaceutical industry, Harbin Medisan acknowledged that while its R&D pipeline is accelerating, new products require time to gain market traction. The company plans to optimize its product portfolio, expedite launches, enhance marketing reforms, and improve cost efficiency through operational streamlining and supply chain integration to bolster long-term competitiveness.
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