Sunshine Pharma Posts RMB 596.42 Million H1 2026 Loss as Kewei Sales Slump

Bulletin Express08-31

Sunshine Pharma (06887) reported a sharp reversal in its interim performance, swinging to a net loss attributable to equity holders of RMB 596.42 million for the six months ended 30 June 2026, versus a RMB 54.27 million loss a year earlier. The downturn was led by a 44.50% slide in group revenue to RMB 1.08 billion, driven primarily by weaker demand for flagship anti-influenza product Kewei (oseltamivir phosphate) amid a moderated flu season.

Gross profit fell 60.60% to RMB 578.17 million, compressing the gross margin to 53.8% from 75.7% in the prior-year period. EBITDA moved from a RMB 430.05 million profit to a RMB 227.30 million loss, while the bottom line was further pressured by asset-impairment charges and elevated finance costs.

Revenue composition shifted modestly: anti-infective drugs contributed RMB 582.36 million (54.1% of total), chronic-disease treatments delivered RMB 463.68 million (43.1%), and other products added RMB 29.26 million (2.7%).

Operating expenses eased 19.52% year on year to RMB 1.13 billion, reflecting a 31.33% reduction in distribution costs to RMB 491.43 million and a 19.63% cut in R&D outlays to RMB 279.88 million as multiple programs advanced to later-stage clinical phases, triggering capitalization of some development spending.

Sunshine Pharma’s balance sheet showed total assets of RMB 11.67 billion and total liabilities of RMB 7.80 billion at end-June. Net current liabilities stood at RMB 1.38 billion, with cash and cash equivalents slightly lower at RMB 1.48 billion. The gearing ratio rose to 135% from 105% at year-end 2025, as bank loans and lease-related borrowings expanded to RMB 5.22 billion. Quick ratio slipped to 0.61x.

The company maintained an active R&D pipeline of nearly 50 Class I innovative candidates, highlighting approvals for Olorigliflozin capsules (January 2026), Insulin Degludec injection (July 2026), and FDA marketing clearance for Insulin Glargine injection (April 2026) followed by its first U.S. shipment in July. AI-driven discovery platforms cut PCC screening time to 1.5 years and underpinned novel assets such as THR-β agonist HEC169584 now in Phase I.

No interim dividend was declared for the period (H1 2025: nil).

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment