Sihuan Pharmaceutical (00460) has announced a positive profit alert. Based on a preliminary assessment of the company's unaudited consolidated management accounts and current information available to the Board for the year ending December 31, 2025, the Group expects to achieve revenue of not less than RMB 25 billion, representing a growth rate of over 30% compared to the same period last year. It also anticipates a net profit of not less than RMB 1.5 billion. Key factors influencing the Group's financial performance for the year include the following: (1) The medical aesthetics business achieved rapid growth, generating revenue exceeding RMB 14 billion and segment profit over RMB 700 million during the year. Both revenue and segment profit grew by over 90% year-on-year, establishing it as the Group's primary pillar for both revenue and profit and driving a significant overall performance improvement. (2) The innovative drug business entered a harvest phase. The combined revenue from Xuanzhu Biotech and Huisheng Biotech increased substantially compared to the previous year. R&D expenses for innovative drugs were gradually optimized, new approved products continued to emerge, and the commercialization of new products progressed smoothly. This segment is transitioning from an investment phase to a revenue-generating phase, significantly improving the Group's profit structure. (3) The company maintained a robust financial position with ample cash on hand. During the year, it implemented multiple share repurchases and completed the spin-off and listing of Xuanzhu Biotech, resulting in significant equity value appreciation gains. This not only alleviated funding pressure for R&D but also optimized the Group's financial structure, leading to a breakthrough in profitability.

The year 2025 marked a critical turning point for Sihuan Pharmaceutical's performance. During the year, several new medical aesthetics and pharmaceutical products from the Group were approved and launched, leading to a significant enhancement in its business structure and market competitiveness. In the medical aesthetics sector, multiple core self-developed products successfully gained approval, including self-developed bio-rejuvenation fillers and self-developed youth-enhancing fillers. With the successive launch of various self-developed regenerative and hydrating products, Sihuan Pharmaceutical has become the first company in the industry to offer a complete portfolio encompassing botulinum toxin, youth-enhancing fillers, bio-rejuvenation fillers, hydrating injections, hyaluronic acid, and energy-based devices. The market share of its core product, Letybo (botulinum toxin), increased to nearly 20%, and its network of partnered medical aesthetics institutions surpassed 8,000. Leveraging its established channels and the traffic generated by core major products, the company's newly launched medical aesthetics products achieved rapid sales volume growth and gained high recognition from medical aesthetics institutions, becoming a crucial engine for performance growth.

Concurrently, the company accelerated its global expansion strategy. It formally signed an investment subscription agreement with Swiss medical aesthetics company Suisselle. Utilizing Suisselle's sales network covering 43 countries, Sihuan Pharmaceutical will introduce its self-developed medical aesthetics products to the EU market, initially forming a closed-loop presence in European and American markets and laying a foundation for long-term sustainable growth. In 2025, the company remained committed to deepening its primary medical aesthetics strategy, with R&D efforts continuously accelerating. Currently, seven products are in the registration application stage, and several products have entered late-stage clinical trials, ensuring a strong pipeline of future products. Looking ahead, Sihuan Pharmaceutical will fully leverage the advantages of its comprehensive medical aesthetics product portfolio. On the sales front, it will build a high-efficiency service system centered on consultative marketing and supported by a multi-dimensional product range, driving the company's upgrade from a medical aesthetics product seller to a professional medical aesthetics solutions provider, thereby solidifying the foundation for long-term, stable growth.

Progress in the pharmaceutical business R&D was rapid, with achievements from Xuanzhu Biotech and Huisheng Biotech materializing intensively. Xuanzhu Biotech's ALK inhibitor and CDK4/6 inhibitor were approved and launched during the year, with the CDK4/6 inhibitor successfully included in the National Reimbursement Drug List. Furthermore, NG-350A received Fast Track designation from the US FDA. Huisheng Biotech's New Drug Application for the glucose-lowering indication of its semaglutide injection was accepted, and patient enrollment for the Phase III clinical trial of its weight-loss indication was completed. Most notably, the company successfully completed the spin-off and listing of Xuanzhu Biotech on the Main Board of The Stock Exchange of Hong Kong Limited in October 2025. This not only brought significant equity value appreciation gains to Sihuan Pharmaceutical but also alleviated R&D investment pressure through capital market financing. This allows the company to concentrate resources on developing high-growth segments like medical aesthetics, providing crucial support for significant performance improvement and the mitigation of financial risks, and propelling the company into a new phase of high-quality development.