Hua Medicine reported a sharp acceleration in commercial momentum for the six months ended 30 June 2026, driven by surging demand for its core diabetes therapy HuaTangNing.
Sales Performance • Product volume reached 3.06 million packs, up 73 % year-on-year, supported by an unchanged National Reimbursement Drug List price. • Revenue rose to RMB 378.90 million, a 74 % increase versus H1 2025.
Profitability Trends • Gross profit doubled to RMB 234.30 million, lifting gross margin to 61.8 % (H1 2025: 54.2 %), reflecting larger production scale and better cost efficiency. • Selling expenses almost doubled to RMB 126.90 million as the commercial team expanded to 187 product representatives and 75 marketing/medical staff; the selling-expense-to-revenue ratio settled at 33.5 %. • Research and development spend edged up 1 % to RMB 66.82 million. • Excluding a one-off RMB 1.24 billion contract-liability release booked in H1 2025, the pre-tax loss narrowed to RMB 30.20 million (H1 2025 adjusted loss: RMB 59.60 million). Reported comparison shows a swing from a RMB 1.18 billion profit a year earlier to the current loss, due to last year’s non-recurring gain.
Cash Flow and Balance Sheet • Cash and bank balances stood at RMB 1.07 billion at 30 June 2026, down RMB 19.35 million from year-end 2025 after funding commercial build-out and R&D. • Net cash used in operations improved to RMB 62.79 million from RMB 84.41 million a year earlier. • Interest-bearing debt totaled RMB 313.30 million; the gearing ratio increased to 35.7 % (31 Dec 2025: 30.0 %). • Current ratio declined to 3.3 from 6.2 over the six-month period, reflecting a shift toward short-term borrowing.
Strategic and R&D Highlights • China’s patent office granted a five-year extension for dorzagliatin, securing protection to April 2034. • Dorzagliatin (MYHOMSIS) received marketing approvals in Hong Kong and Macao, with first prescriptions in Hong Kong issued in August 2026. • Real-world study HMM0601 involving 2,024 patients confirmed dorzagliatin’s safety and glycaemic efficacy across diverse Type 2 diabetes populations. • Combination-therapy preclinical data presented at the 2026 ADA showed synergistic metabolic benefits when dorzagliatin was paired with oral GLP-1, THR-β or pan-PPAR agonists. • A Phase Ib multiple-ascending-dose trial of second-generation GKA (HM1005) continues in the United States; topline data are expected in H2 2026. • An IND submission for dorzagliatin in MODY-2 is targeted for H2 2026, following pre-IND alignment with China’s CDE. • The Company is integrating AI-driven tools, including its “GK Charger” education platform, to enhance commercialization efficiency.
Outlook Management targets first full-year profitability in 2027, underpinned by expanding domestic sales, regional launches of MYHOMSIS, and advancement of next-generation GKA and new indications such as MCI and frailty.