Shares of LIVZON PHARMA (01513) continued their downward spiral, falling more than 3% in Hong Kong trading on Wednesday, a day after a nearly 16% slump. The stock touched HK$20.18 intraday, marking a fresh two-year low, with turnover reaching HK$72.05 million.
The persistent selling pressure follows the company's recently released interim results for 2026. For the first half, revenue came in at approximately RMB 5 billion, down 20.28% year-on-year, while net profit attributable to shareholders fell 27.23% to RMB 932 million.
Looking at the second quarter in isolation, the figures were even more stark. Revenue declined 31.1% year-on-year to RMB 2.13 billion, while attributable net profit tumbled 44.9% to RMB 355 million.
The sharp underperformance in the chemical preparations and traditional Chinese medicine (TCM) segments was the primary drag on overall revenue. During the reporting period, sales from the chemical preparations business dropped 25.33%, weighed down by medical insurance price cuts and national centralized procurement. Meanwhile, revenue from the TCM preparations and other segments slid 34.83%.
The decline in TCM-related product demand is largely attributed to a notable retreat in the incidence of influenza and respiratory diseases in China during the first quarter, which reduced the need for related treatments.
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