Shanghai-based Haohai Biotech reported unaudited first-quarter 2026 revenue of RMB 571.44 million, a 7.62% year-on-year decline. Management attributed the contraction to subdued domestic demand and intensified price competition in its high-margin hyaluronic-acid (HA) dermal filler portfolio.

Net profit attributable to shareholders fell 18.55% to RMB 73.56 million, while net profit after excluding non-recurring gains declined 34.30% to RMB 58.13 million. The non-recurring items primarily comprised RMB 17.96 million in government grants.

Margins compressed across the period. Gross margin (revenue minus operating costs) slipped to 66.3% from 69.5% a year earlier, and the net margin attributable to shareholders eased to 12.87% from 14.61%.

Operating cash generation weakened sharply: net cash from operating activities dropped 78.37% to RMB 18.57 million, reflecting lower sales and higher payments for materials and prepayments on new agency products. Combined with a RMB 529.68 million outflow for investment activities—mostly directed to fixed-asset construction and financial investments—cash and equivalents fell to RMB 698.27 million at quarter-end, down from RMB 1.23 billion three months earlier.

Haohai Biotech continued to prioritise research and development, lifting R&D spending by 7.37% to RMB 51.99 million, equal to 9.10% of revenue versus 7.83% a year ago.

The balance sheet remained lightly leveraged. Total assets stood at RMB 6.67 billion, with equity attributable to shareholders of RMB 5.44 billion; the equity ratio improved marginally to 81.63%. Short-term borrowings rose to RMB 281.29 million, while long-term borrowings fell to zero following repayment of RMB 33.10 million.

The weighted average return on equity registered 1.35%, down 0.26 percentage points year on year.

Shareholding remained concentrated, with founders Jiang Wei and You Jie jointly controlling 46.46% of issued shares. The company held 1.67% of its own shares in a repurchase account at quarter-end.