Livzon Pharmaceutical Group Inc. (Livzon Pharma) released its unaudited 2026 third-quarter report, revealing a contraction in top- and bottom-line performance but resilient cash generation.
Financial highlights (January–September 2026) • Revenue: RMB 7.32 billion, down 19.71% year on year. • Net profit attributable to shareholders: RMB 1.29 billion, down 26.57%. • Net margin: 17.60%, down c.1.3 ppts versus 9M-2025. • Basic EPS: RMB 1.45 (-26.02%). • Operating cash flow: RMB 2.49 billion, marginally lower (-1.33%).
Quarterly performance (Q3 2026) • Revenue: RMB 2.32 billion, a drop of 18.44% from Q3 2025. • Net profit attributable to shareholders: RMB 355.91 million, down 24.76%. • Basic EPS: RMB 0.40 (-23.08%).
Profitability and expense trends Operating profit for 9M-2026 fell 26.6% to RMB 1.84 billion; the operating margin compressed to 25.18% (9M-2025: 27.54%). • Selling expenses decreased 35.1% to RMB 1.69 billion, reflecting tightened commercial spending. • R&D expenditure declined 17.4% to RMB 563.99 million. • Finance income dropped sharply, turning net finance income of RMB 189.00 million in 9M-2025 into RMB 42.82 million, as interest income fell.
Balance-sheet developments • Total assets slipped 3.08% to RMB 23.25 billion. • Cash and cash equivalents ended the period at RMB 7.15 billion, down from RMB 9.91 billion at end-2025. • Owners’ equity attributable to shareholders declined 6.26% to RMB 13.02 billion. • Short-term borrowings increased to RMB 3.16 billion (+49%), while long-term loans contracted to RMB 185.80 million (-75%).
Cash-flow profile • Operating activities generated RMB 2.49 billion, broadly flat year on year. • Investing activities consumed RMB 0.66 billion, an improvement on the prior-year outflow of RMB 1.63 billion, despite RMB 4.84 billion of new investments and RMB 1.56 billion spent on acquisitions. • Financing outflow widened to RMB 2.00 billion, driven by RMB 2.30 billion in dividends, profit distributions and interest, alongside higher debt repayments.
Extraordinary items Net extraordinary gains contributed RMB 27.73 million during 9M-2026, with government grants of RMB 52.97 million partly offset by fair-value losses on financial instruments.
Shareholder structure As of 30 September 2026, Livzon Pharma had 62,628 ordinary shareholders. HKSCC Nominees Limited held the largest stake at 33.74%, followed by controlling shareholder Joincare Pharmaceutical Group with 24.93%.
Audit status The 2026 third-quarter financial statements have not been audited.
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