China Resources Pharmaceutical (03320): KPC expects net loss to mother for the medium term to be 330 million yuan to 400 million yuan year-on-year profit to loss

Zhitong Finance App News, China Resources Pharmaceutical (03320) issued an announcement. According to preliminary estimates from the financial department of Kunming Pharmaceutical Group, (i) the net loss attributable to shareholders of listed companies for the six months ending June 30, 2026 (reporting period) is expected to be between RMB 330 million and RMB 400 million, a decrease of 302% to 266% over the same period of the previous year, and there will be losses; and the net loss attributable to shareholders of listed companies during the reporting period (after deducting no current income or loss) is expected to be between RMB 350 million and RMB 430 million, a decrease of 383% to 383% from the same period last year %. The above information is based on preliminary calculations by the financial department of KPC Group and has not been reviewed. The financial data contained in the 2026 Interim Report to be released by KPC shall prevail.

The main operating data of KPC Group for the six months ended June 30, 2025 are as follows: (i) total profit: RMB 298.9 million; (ii) net profit attributable to shareholders of listed companies: RMB 198.4 million; (iii) net profit attributable to shareholders of listed companies (after deducting non-recurring income or losses): RMB 151.1 million; and (iv) profit per share: RMB 0.26 per share.

In the first half of 2026, due to the double impact of the continuous tightening of pharmaceutical industry policies and the deep adjustment of the market environment, KPC Group's own channel structure optimization and business model transformation were at a critical stage, and the overall business performance of KMP declined sharply. Looking at the external environment, the collection of proprietary Chinese medicines continues to expand, medical insurance fee control policies continue to be deepened, and the pace and price space for in-hospital terminal products are constrained; structural changes such as the accelerated restructuring of the competitive landscape of out-of-hospital retail terminals, the reshuffle and integration of small and medium-sized stores, and the diversion of online instant retail distribution continue to have an impact on traditional channels. From an internal management perspective, KPC actively optimizes channel inventory and controls the pace of delivery; at the same time, it promotes marketing model changes, integrates and optimizes marketing teams, and focuses on improving pure terminal sales and reshaping the value chain. Faced with the rapidly changing external environment, although KPC has actively adopted countermeasures, there are still certain deviations in the accuracy and intensity of management adjustments. Strategic investment has not yet been fully converted into revenue growth, and the overall progress of business improvement falls short of expectations. Due to the combined influence of multiple internal and external factors mentioned above, the KPC Group lost its performance during the reporting period.

Faced with phased operating pressure, KPMG accelerated the adjustment of the channel operation system, strengthened pure terminal sales management, optimized delivery pace, and digested channel inventory in an orderly manner; at the same time, maintained strategic strength, continued to promote business transformation, focused on the effective transformation of brand operations into pure terminal sales, increased clinical academic research on key products such as the Blood Saetong series, consolidated core product value barriers, and promoted cost reduction and efficiency in a systematic and normalized manner, continuously improving operational efficiency and risk management and control levels to provide a solid guarantee for the steady operation of KMP.