SIHUAN PHARM (00460) releases annual performance, with shareholders' net profit of approximately 180 million yuan, turning losses into gains year-on-year.

SIHUAN PHARM (00460) released its annual performance for the year ending December 31, 2025, with total revenue of approximately RMB 2.618 billion (unit follows), representing a year-on-year increase of about 37.7%. Gross profit is around RMB 1.802 billion, up approximately 45.1% year-on-year, while overall research and development expenses are approximately RMB 0.291 billion, down 38.5% year-on-year. The company's attributable profit is about RMB 0.18 billion, turning from a loss to profit; basic earnings per share is 1.97 cents. It is proposed to distribute a final dividend of 0.96 cents per share. The change in revenue is mainly driven by the medical beauty business. During the year, the revenue from the medical beauty business was approximately RMB 1.485 billion (2024: RMB 0.744 billion), representing a year-on-year increase of about 99.6%. The core flagship product, Leitebao, achieved steady revenue growth by expanding sales channels and coverage to over 8,000 medical beauty institutions, covering 1,500 key medical beauty institutions. New approved products such as Tongyan Needle (Rejuvenate and Sfuyen) and Girls Needle (Research) have performed well after their market launch, with L-Peptide Power Essence Freezing Young, filling a gap in the segmented market, contributing important incremental revenue to the medical beauty business. At the same time, relying on a full range of compliant product portfolio, the company has implemented a multi-species combination marketing strategy, vigorously promoting combination solutions such as LeBo+, Magic Youth, etc., further driving rapid growth of the overall sales scale, becoming the first drive of revenue growth for the group. Revenue from innovative drugs and other pharmaceuticals is approximately RMB 0.176 billion (2024: RMB 57.6 million), up about 206.3% year-on-year, mainly due to the continuous increase in sales of diabetes drugs by Huisheng BioPharmaceutical Co., Ltd. (Huisheng Bio), and the commercialization of three products by Xuanzhu Biotechnology Co., Ltd. (Xuanzhu Bio) that have been approved, leading to a slight increase in income and gradually opening up long-term profit opportunities. 2026 is a crucial year for SIHUAN PHARM to fully implement its strategic transformation, move towards high-quality development and release value. It is also the beginning of the group's implementation of a three-year strategic plan and the advancement towards becoming a benchmark enterprise in China's medical beauty industry. Based on the core trends of the medical beauty industrydeepening compliance, high-speed growth in regenerative materials and collagen peptide tracks, and the upgrade of consumer demand towards personalized comprehensive anti-aging the group will focus on "deepening dual-drive, unlocking synergistic value, accelerating global deployment, and improving capital efficiency" as its core strategies. By linking compliance, products, technology, globalization, and industry chain integration, the group will promote the leapfrog development of various business sectors, leading the group into a new cycle of profit and growth.