Hong Kong-listed Luye Pharma Group Ltd. (Luye Pharma) reported mixed interim results for the six months ended 30 June 2026.

Revenue and Profitability • Revenue slipped 5.6 % year on year to RMB 3.00 billion, reflecting lower contributions from product know-how sales. • Gross profit fell 11.8 % to RMB 1.90 billion; gross margin narrowed to 63.4 % from 67.8 %. • Net profit rose 6.5 % to RMB 380.80 million, while profit attributable to shareholders grew 24.8 % to RMB 390.50 million, supported by reduced selling expenses and lower finance costs. • EBITDA increased 3.9 % to RMB 1.25 billion. • Basic earnings per share improved to RMB 9.78 cents (1H 2025: RMB 8.32 cents). • The board did not propose an interim dividend.

Cost Structure • Selling and distribution expenses fell 21.5 % to RMB 800.15 million, equivalent to 26.7 % of revenue (1H 2025: 32.0 %). • Administrative expenses edged up 3.0 % to RMB 325.01 million. • Finance costs declined 10.1 % to RMB 304.28 million, helped by lower convertible-bond interest. • R&D and other expenses increased, lifting total “other expenses” 86.8 % to RMB 397.88 million, partly due to higher research spending and a loss on bond redemption.

Segment Performance • Central Nervous System (CNS) medicines delivered the strongest growth, with revenue up 22.2 % to RMB 1.06 billion, driven by products such as Seroquel, Rykindo and Ruoxinlin. • Cardiovascular sales rose 5.9 % to RMB 734.22 million. • Alimentary tract & metabolism drugs gained 6.7 % to RMB 192.17 million. • Other therapeutic products expanded 24.0 % to RMB 179.97 million. • Oncology revenue dropped 35.5 % to RMB 835.93 million, reflecting lower sales of key products and reduced product-know-how income.

Balance Sheet and Liquidity • Cash and cash equivalents stood at RMB 8.22 billion (31 Dec 2025: RMB 4.49 billion). • Total interest-bearing loans and borrowings rose to RMB 10.30 billion (31 Dec 2025: RMB 8.35 billion); RMB 9.16 billion is due within 12 months. • Net current assets improved to RMB 5.71 billion, while the gearing ratio increased to 58.6 % (31 Dec 2025: 45.5 %) on higher borrowings. • No interim dividend was declared.

Operational Highlights During the period, Luye Pharma launched new products, advanced multiple clinical programmes and strengthened international expansion. Notable events included FDA acceptance of BLAs for denosumab biosimilars BA6101 and BA1102, and continued roll-out of CNS therapies in overseas markets. Management expects further product approvals, key clinical read-outs and additional licensing milestones over the next 12 months.