Essex Bio-Technology Limited reported unaudited interim results for the six months ended 30 June 2026 with turnover at HK$784.69 million, a 10.5% year-on-year decline. Gross profit fell to HK$656.26 million (-15.7%), lowering gross margin to 83.6% from 88.9% a year earlier.
Net profit attributable to shareholders dropped 32.2% to HK$110.72 million, pressured by weaker sales, higher VAT on biologics and increased compliance costs. Basic earnings per share decreased to HK19.53 cents from HK28.82 cents.
Segment performance • Ophthalmology: HK$367.21 million, ‑12.0% • Surgical (wound-care): HK$341.23 million, ‑24.0% • Healthcare & Partner Services: HK$76.25 million, +648.0%
The flagship bFGF biologics (Beifushu® and Beifuji® series) contributed 78.2% of total revenue.
Cost structure • Distribution & selling expenses: HK$396.52 million, ‑15.9% • Administrative expenses: HK$126.88 million, +27.1% (exchange-gain reversal, expanded overseas operations, higher R&D) • Finance costs: HK$4.63 million, +65.5%
R&D investment totalled HK$51.0 million (capitalised and expensed), equivalent to 6.5% of turnover. Key late-stage assets include the SkQ1 dry-eye candidate (investment to date: HK$356.80 million) and anti-VEGF HLX04-O for wet-AMD (investment to date: HK$485.20 million).
Balance sheet and cash flow • Cash and cash equivalents: HK$806.63 million (31 Dec 2025: HK$782.73 million) • Bank borrowings: HK$324.48 million; 29.3% due within one year • Gearing ratio: 29.5% (31 Dec 2025: 30.9%) • Net cash from operations: HK$98.68 million (2025 interim: HK$122.49 million) • Capital commitments outstanding: HK$170.03 million
Shareholder returns The board declared an interim dividend of HK$0.05 per share (2025 interim: HK$0.07), payable on 2 September 2026 to shareholders on record as of 24 August 2026. During the period, the company repurchased 1.006 million shares for HK$2.66 million; these shares are held in treasury.
Operational update Management cited the January 2026 VAT hike on biologics, tightened medical-representative regulations and intensified anti-corruption scrutiny as headwinds to sales and margins. Mitigation measures include expanding digital engagement, pursuing differentiated product innovation and strict compliance.
The Zhuhai second manufacturing facility (GFA ~58,000 m²) is substantially complete, with final delivery targeted in 2026/2027.