CR Pharma Subsidiary KPC Warns of RMB330-400 Million H1 2026 Loss on Policy and Market Headwinds

Bulletin Express07-14

Hong Kong, 14 July 2026—China Resources Pharmaceutical Group Limited (CHINARES PHARMA) disclosed unaudited preliminary results from its 29.08 per cent–owned subsidiary, KPC Pharmaceuticals, Inc. (KPC), indicating a sharp swing to loss for the six months ended 30 June 2026.

KPC expects to report: • Net loss attributable to shareholders of between RMB-400.00 million and RMB-330.00 million, versus a profit of RMB198.36 million in the same period of 2025, implying a year-on-year decline of 302 per cent to 266 per cent. • Net loss attributable to shareholders excluding non-recurring items of between RMB-430.00 million and RMB-350.00 million, compared with a profit of RMB151.10 million a year earlier—a deterioration of 385 per cent to 332 per cent. • The 2025 comparative earnings per share stood at RMB0.26.

Management cited multiple drivers for the downturn: 1. External pressures: expansion of centralised procurement for traditional Chinese medicines, tighter medical-insurance cost controls, and intensified restructuring in off-hospital retail channels, all limiting volume and pricing for in-hospital products while reshaping retail demand patterns. 2. Internal adjustments: deliberate inventory destocking, controlled shipment pacing, and an ongoing overhaul of marketing channels and teams. Strategic investments and reforms have yet to translate into incremental revenue, leading to a revenue shortfall during the reporting period.

KPC is responding by accelerating channel inventory digestion, refining shipment management, strengthening consumer sell-through monitoring, and intensifying clinical and academic work on core products such as the Xuesaitong series. Concurrently, the company is targeting systematic cost reduction and efficiency gains to stabilise operations.

The figures are prepared under PRC GAAP and remain subject to audit; final results will be released in KPC’s 2026 interim report on the Shanghai Stock Exchange website. The data relate solely to KPC and do not represent the consolidated performance of CHINARES PHARMA. Investors are advised to exercise caution when interpreting the information.

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