Shineway Pharma (02877) has released its interim results for the 2026 fiscal year, reporting a turnover of RMB 1.181 billion for the period, a year-on-year decrease of 28.5%. Net profit for the period came in at RMB 469 million, down 23.7% compared to the previous year, with basic earnings per share of RMB 0.62. The board has proposed a second interim dividend of RMB 0.80 per share.

The group's overall gross margin narrowed from 72.2% in the same period last year to 69.9%, impacted by a decline in sales scale, price reductions resulting from centralized procurement policies, and persistently elevated production costs. During the period, the group actively implemented cost-control and efficiency-enhancement measures, with selling and distribution costs and administrative expenses falling sharply by 51.8% and 15.5% year-on-year, respectively. However, due to lower sales revenue and gross margin, reduced investment income, and increased research and development spending, net profit for the period dropped 23.7% year-on-year to RMB 469 million. Earnings per share also decreased from RMB 0.81 in the prior-year period to RMB 0.62.

The group continues to prioritize the expansion of oral formulations as its core growth strategy. In the first six months of 2026, oral products accounted for 72.9% of total sales, while injection products represented 27.1%. The nation's ongoing push for centralized drug procurement has led multiple provinces to include traditional Chinese medicine injections in procurement schemes or secondary price negotiations, resulting in significant price cuts. At the same time, hospital procurement volumes have been tightly constrained, and under total medical insurance budget management, hospitals have adopted a cautious approach to using TCM injections. Key products such as Qingkailing injection, Shenmai injection, and Shuxuening injection all experienced notable declines.

Combined with stricter medical insurance payment standards and destocking at the terminal level, the group's injection product sales fell from RMB 566 million in the same period last year to RMB 320 million, a drop of 43.4%. Qingkailing injection and Shenmai injection sales decreased by 49.0% and 51.3% year-on-year, respectively. Additionally, sales of other injection products including Shuxuening injection, Guanxinning injection, and Danshen injection declined by 39.1%, 23.7%, and 34.5%, respectively.