Stock Track | HUA MEDICINE-B Soars 5.88% Following Impressive Interim Results and First-Time Profitability

Stock Track
Sep 02

HUA MEDICINE-B (02552) saw its stock price soaring by 5.88% during the Tuesday trading session, continuing its recent upward trend. The significant surge comes on the heels of the company's release of its interim results, which revealed remarkable growth and the achievement of first-time profitability.

According to the interim report, HUA MEDICINE-B demonstrated strong commercial performance, with Huatangning sales reaching 1.764 million boxes, a substantial 108% year-over-year increase. The company's net sales totaled 217.4 million yuan, marking a 112% rise compared to the same period last year. Notably, the company recognized a one-time deferred revenue of 1.2435 billion yuan following the termination of its exclusive promotion service agreement with Bayer, contributing to a first-half profit of 1.1839 billion yuan. This milestone marks HUA MEDICINE-B's first profitable reporting period, underscoring the success of its commercialization transformation.

Investors were particularly encouraged by the company's improved operational efficiency and expanded production scale, which drove the gross margin up to 54.2%, an increase of 7.7 percentage points from the previous year. Furthermore, HUA MEDICINE-B's independent sales team has achieved remarkable growth since taking full control of Huatangning's commercial operations in January 2025. The company's future prospects look promising, with ongoing expansion of medical insurance coverage leading to increased prescription volumes in secondary and tertiary hospitals. Additionally, HUA MEDICINE-B is actively pursuing overseas business opportunities and maintaining substantial investments in R&D, signaling strong potential for continued growth and global expansion.

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