Livzon Pharmaceutical Group (Livzon Pharma, 01513) released its 2026 interim report for the six months ended 30 June 2026.

Financial Performance • Operating income fell 20.28 % year-on-year to RMB 5.00 billion, reflecting price pressure on core chemical preparations and lower TCM sales. • Net profit attributable to shareholders declined 27.23 % to RMB 932.20 million; net profit after extraordinary gains/losses dropped 29.26 % to RMB 890.20 million. • Operating cash inflow edged up 4.50 % to RMB 1.76 billion, illustrating solid cash-generation despite profit contraction. • Basic and diluted EPS both stood at RMB 1.05 (vs. RMB 1.43 a year earlier). • The gearing ratio increased to 38.12 % (31 Dec 2025: 35.18 %) after higher short-term borrowing.

Segment Highlights • Chemical drug preparations revenue fell 29.39 % to RMB 954.02 million, pressured by national volume-based procurement and price cuts. • APIs and intermediates slid 3.04 % to RMB 1.61 billion; export share exceeded 60 %. • TCM preparations dropped 34.83 % to RMB 520.99 million, mainly due to lower demand for anti-viral products. • Diagnostic reagents and equipment revenue decreased 27.78 % to RMB 270.21 million. • Overseas sales rose 12.43 % to RMB 1.13 billion, representing 22.58 % of total revenue.

R&D and Pipeline • R&D spending reached RMB 381.50 million; 38 formulation projects are under development, 12 of which are at the marketing application stage. • Key milestones: approval of Recombinant Human Follitropin Alfa Injection and Banxia Baizhu Tianma Decoction Granules; NDA submissions for JP-1366 tablets (P-CAB) and Lecankitug (IL-17A/F bispecific antibody); initiation of Phase III trials for LPM7100328 (oral GnRH antagonist). • AI-driven platforms accelerated compound discovery and process optimisation, reducing screening cycles from months to days.

Strategic Moves • Completed public tender offer for Vietnam-listed Imexpharm, acquiring 67.88 % for approximately RMB 1.55 billion; goodwill of RMB 969.62 million recognised. • Established two single-asset management plans (CITIC Securities Zhuyao Linghang No.1 and CICC Tianying No.1) with total investment of RMB 1.81 billion. • Overseas expansion advanced, with the Jakarta API plant under construction and integration of Imexpharm underway.

Risk Management • Management highlights pressures from volume-based procurement, price cuts and intensified domestic competition; prioritises compliance, cost control and overseas diversification. • Net current assets stood at RMB 4.65 billion; unrestricted cash and bank balances totalled RMB 7.44 billion.

Dividend • A final cash dividend of RMB 1.43 per 10 shares for FY 2025 (total payout RMB 1.27 billion) was paid in June 2026; no interim dividend was declared for H1 2026.

Management Changes • Liu Daping appointed President and Executive Director; Kang Li joined the Board as Independent Non-executive Director; several senior executives resigned or changed roles during the period.

Outlook Livzon Pharma plans to accelerate commercialisation of new products, deepen overseas presence and continue AI-enabled R&D efficiency measures to navigate pricing pressures and support long-term growth.