Core Viewpoint - Huahai Pharmaceutical reported a significant decline in both revenue and net profit for H1 2025, primarily due to falling product prices and increased R&D investments [1][2] Financial Performance - H1 revenue reached 4.516 billion yuan, a year-on-year decrease of 11.93% [1] - Net profit attributable to shareholders was 409 million yuan, down 45.30% year-on-year [1] - Non-recurring net profit was 363 million yuan, a decline of 52.48% compared to the previous year [1] - Operating cash flow for H1 was 370 million yuan, a drop of 71.52% year-on-year [2] Reasons for Decline - The decline in net profit is attributed to three main factors: 1. Continuous price drops due to intensified competition and domestic procurement policies, despite an increase in market share [1] 2. Accelerated R&D investments in biological innovation drugs [1] 3. Decreased foreign exchange gains due to currency fluctuations [1] R&D Progress - The product HB0034 (Ruxolitinib injection) has been prioritized for review by the National Medical Products Administration (NMPA) and is expected to be approved for market in Q2 2026 [3] - The key III phase clinical trial for HB0017 for moderate to severe plaque psoriasis is nearing completion, while the trial for ankylosing spondylitis is ongoing [3] - In the oncology pipeline, HB0025 for advanced or recurrent endometrial cancer has submitted a meeting request for confirmatory III phase clinical trials, and significant efficacy data for non-small cell lung cancer will be presented in early September [3]