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[News]Hua Medicine Released Positive Profit Alert for 2025 1H
July 29, 2025,Shanghai, China
Hua Medicine (the "Company", Hong Kong Stock Exchange Stock Code: 2552) announced yesterday a positive profit alert for the first half of the year for the Company together with its subsidiaries. (the "Group").
Based on a preliminary assessment of the unaudited management accounts of the Group for the six months ended June 30, 2025 (the “Current Reporting Period”) and information currently available to the Group, the Group expects to record a profit of approximately RMB1,184.1 million for the Current Reporting Period.
The expected growth in profit for the first half of the year is mainly attributed to the following factors:
| ● | On January 1, 2025, the Company terminated the exclusive promotion service agreement with Bayer. The unamortized contract liabilities amounting to RMB1,243.5 million were released to profit or loss, and recognized as a gain by the Group. | |
| ● | For the six months ended June 30, 2025, Hua Medicine sold approximately 1,764,000 packs of HuaTangNing(华堂宁®), representing approximately RMB217.4 million in net sales. During the same period in 2024, approximately 846,000 packs of HuaTangNing were sold, representing approximately RMB102.7 million in net sales. The difference represents a 111.8% increase in sales over a period during which the price per pack remained the same, which demonstrates that the transition of commercialization responsibility has been smooth and reinvigorated. | |
| ● | Gross profit for the six months ended June 30, 2025 is expected to amount to approximately RMB117.8 million, while a gross profit of RMB47.8 million was reported in the same period in 2024. The expected significant increase in gross profit was attributable to increase in sales and improvement in gross margin. The Company will report an increase in gross margin to approximately 54.2% for the six months ended June 30, 2025 from 46.5% for the corresponding period in 2024. This was mainly due to increase in manufacturing efficiency and production volume that lead to corresponding reduction in unit production costs. | |
Dr. Li Chen, Founder and CEO of Hua Medicine, said, "In the first half of 2025, the Company achieved profitability for the first time. HuaTangNing has shown a strong growth momentum. The establishment of the Company's pharmaceutical marketing team has accelerated the market promotion of HuaTangNing and injected confidence into the Company's sustained profitability in the future. We will continue to explore the market potential of HuaTangNing in personalized treatment of diabetes and diabetic complications through R&D innovation and capacity improvement, so as to benefit more patients."
Forward-Looking Statements
This document contains statements regarding Hua Medicine’s future expectations, plans, and prospects for the Company and its products. These forward-looking statements pertain only to events or information as of the date they are made and may change due to future developments. Unless required by law, we are not obligated to update or publicly revise any forward-looking statements or unexpected events after the date of such statements, regardless of new information, future events, or other circumstances. Please read this document carefully and understand that our actual future performance or results may differ materially from expectations due to various risks, uncertainties, or other legal requirements.
About Hua Medicine
Hua Medicine (The "Company") is an innovative drug development and commercialization company based in Shanghai, China, with companies in the United States and Hong Kong. Hua Medicine focuses on developing novel therapies for patients with unmet medical needs worldwide. Based on global resources, Hua Medicine teams up with global high-calibre people to develop breakthrough technologies and products, which contribute to innovation in diabetes care. Hua Medicine's cornerstone product HuaTangNing (华堂宁®) (dorzagliatin tablets), targets the glucose sensor glucokinase, restores glucose sensitivity in T2D patients, and stabilizes imbalances in blood glucose levels in patients. HuaTangNing (华堂宁®) was approved by the National Medical Products Administration (NMPA) of China on September 30th, 2022. It can be used alone or in combination with metformin for adult T2D patients. For patients with chronic kidney disease (CKD), no dose adjustment is required. It is an oral hypoglycemic drug that can be used for patients with Type 2 diabetes with renal function impairment.
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Website: www.huamedicine.com
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Additionally, such information should not be interpreted as a recommendation or promotion of any drug or treatment, nor should it replace medical advice from healthcare professionals. For medical-related matters, please consult a healthcare professional.
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