huahaipharm(SH:600521) Ge Long Hui·2026-01-26 10:02Core Viewpoint - Huahai Pharmaceutical (600521.SH) expects a significant decline in net profit for the fiscal year 2025, projecting a range of 224 million to 335 million yuan, representing a year-on-year decrease of approximately 70% to 80% [1]. Financial Performance - The company's net profit attributable to shareholders is expected to drop sharply, with a forecasted range of 113 million to 226 million yuan for net profit excluding non-recurring gains and losses, indicating a year-on-year decline of about 80% to 90% [1]. - The report highlights a substantial decrease in both net profit and net profit excluding non-recurring gains and losses compared to the same period last year [1]. Business Challenges - Domestic formulation business is facing pressure due to the expansion and deepening of domestic centralized procurement policies, leading to continuous price pressure and intensified competition. Additionally, the sales revenue from existing products is declining, while new products are taking time to ramp up, negatively impacting profits [1]. - The raw material pharmaceutical industry is experiencing fierce competition characterized by overcapacity and price pressure. New product development is hindered by long development cycles and significant impacts from changing internal and external business environments, resulting in decreased sales revenue and profits [1]. - The company is accelerating the progress of its biopharmaceutical innovation projects, leading to a substantial year-on-year increase in R&D expenditures [1]. Non-Operating Gains - Non-operating gains have increased by approximately 100 million to 130 million yuan year-on-year, primarily due to increased fair value changes of financial assets measured at fair value and gains from the sale of certain equity interests [1].