United Laboratories International Holdings (United Laboratories) reported a sharp contraction in earnings for the six months to 30 June 2026, as the absence of last year’s large licensing milestone cut into revenue and profitability.
Revenue fell 18.00% year on year to RMB 6.17 billion. Gross profit retreated 46.02% to RMB 2.12 billion, while EBITDA dropped 66.53% to RMB 0.92 billion. Profit before tax collapsed 80.80% to RMB 0.47 billion, and profit attributable to shareholders plunged 81.64% to RMB 0.35 billion. Basic EPS slumped to RMB 17.62 cents from RMB 104.26 cents.
Management cited the normalisation of licensing income as the primary drag: the finished-products segment recorded licence fee revenue of only RMB 0.10 billion this period versus RMB 1.43 billion a year earlier. Contributing factors also included a RMB 177.87 million net foreign-exchange loss versus a RMB 61.18 million gain in 2025, and a 116.10% rise in finance costs to RMB 44.95 million following higher project borrowings.
Segment breakdown • Intermediate products: revenue down 14.19% to RMB 1.98 billion; segment profit down 69.85% to RMB 191.41 million. • Bulk medicine: revenue up 4.98% to RMB 3.15 billion, yet segment profit slid 68.20% to RMB 79.65 million as margins tightened. • Finished products: revenue (including licence fees) fell 27.93% to RMB 2.87 billion; segment profit declined 73.56% to RMB 398.02 million.
R&D and pipeline United Laboratories invested RMB 0.47 billion in research and development, down 14.8% year on year but still equal to 7.6% of revenue. The group reported 40 human drug candidates—23 of them Class 1 new drugs—and 67 animal-health projects in development. Key milestones included FDA and NMPA approvals for IND filings on several pipeline assets and continued progress with UBT251, which secured a US$15 million milestone payment from licensee Novo Nordisk.
Balance sheet and liquidity Cash and cash equivalents plus pledged deposits rose to RMB 11.73 billion, while total borrowings increased to RMB 5.92 billion, all denominated in renminbi. Net cash and bank balances after deducting borrowings and supplier-finance trade payables stood at RMB 3.42 billion. The current ratio improved to 2.05 from 1.83 at year-end 2025.
Dividend policy The board declared no interim dividend, compared with an RMB 16.0 cents-per-share payout a year earlier, after distributing a RMB 0.26 final dividend (total RMB 0.51 billion) in July 2026.
Capital expenditure and funding First-half capex reached RMB 0.43 billion, focused on expanding production facilities. Of the HK$2.17 billion (RMB 1.99 billion) raised via a July 2025 share placing, RMB 890.70 million has been deployed for manufacturing expansion and overseas initiatives, and RMB 678.70 million for R&D; the balance is slated for use by end-2028.
Outlook Management expects China’s “15th Five-Year Plan” policies to accelerate drug innovation and international expansion. United Laboratories aims to leverage its integrated supply chain, advance late-stage clinical assets, and pursue further global collaborations while maintaining financial discipline.
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