Sihuan Pharmaceutical (00460) announced its annual results for the period ended December 31, 2025. Total revenue reached approximately RMB 2.618 billion, representing an increase of about 37.7% year-on-year. Gross profit was approximately RMB 1.802 billion, up about 45.1% compared to the previous year. Overall research and development expenses were approximately RMB 291 million, a decrease of 38.5% year-on-year. Profit attributable to owners of the company was approximately RMB 180 million, marking a turnaround from a loss to a profit compared to the same period last year. Basic earnings per share were 1.97 fen. The board proposed a final dividend of 0.96 fen per share.

The change in revenue was primarily driven by the medical aesthetics business. During the year, revenue from the medical aesthetics segment amounted to approximately RMB 1.485 billion (2024: RMB 744 million), a surge of about 99.6% year-on-year. The core product, Letybo®, achieved coverage of over 8,000 medical aesthetic institutions, including 1,500 key establishments, through continuous expansion and penetration of sales channels, supporting steady revenue growth. Newly approved products such as the "Youthful Needle" (Huiyan Zhen® and Sifuyan®) and the "Maiden Needle" (Qingyan®) performed strongly post-launch. The L-carnosine-based aesthetic solution, Dongyan®, filled a gap in the niche market, contributing significant incremental momentum to the medical aesthetics revenue. Furthermore, leveraging its comprehensive portfolio of compliant products, the company implemented multi-product combination marketing strategies, vigorously promoting combination solutions such as Letybo+ and Magic Youthful Face, which further accelerated the overall sales scale. The medical aesthetics business has become the primary growth driver for the group's revenue.

Revenue from innovative drugs and other pharmaceuticals was approximately RMB 176 million (2024: RMB 57.6 million), an increase of about 206.3% year-on-year. This growth was mainly due to sustained sales increases in diabetes treatments from Huisheng Biopharmaceutical Co., Ltd. (Huisheng Bio), and the gradual commercialization of three approved products from Xuanzhu Biotech Co., Ltd. (Xuanzhu Biotech), leading to modest revenue growth and the gradual opening of long-term profit potential.

The year 2026 is pivotal for Sihuan Pharmaceutical as it fully implements its strategic transformation and moves towards high-quality development and value realization. It also marks the beginning of the group's execution of its three-year strategic plan, aiming to become a benchmark enterprise in China's medical aesthetics industry. Anchored in core industry trends—including the deepening of compliance, rapid growth in regenerative materials and collagen segments, and the upgrade of consumer demand towards personalized, comprehensive anti-aging solutions—the group will adopt a core strategy focused on "deepening the dual-engine drive, releasing synergistic value, accelerating global layout, and enhancing capital efficiency." By integrating five key development directions—compliance, products, technology, globalization, and industrial chain integration—the group will propel leapfrog development across its business segments, leading the company into a new cycle of profitability and growth.