Essex Bio-Technology (1061) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2026 was HK$784.7 million, down 10.5% year-over-year, mainly due to regulatory changes and increased VAT in the PRC that could not be passed to customers.

• Net profit declined 32.2% to HK$110.7 million, impacted by lower gross margins and reduced exchange gains.

• The Group’s core business remains in ophthalmology and surgical biologics, with flagship products accounting for 78.2% of turnover.

• Significant investments continue in R&D, particularly in late-stage ophthalmic products and biologics.

Financial highlights

• Gross profit margin decreased to 83.6% from 88.8% year-over-year.

• Net profit margin fell to 14.1% from 18.6% year-over-year.

• Basic and diluted EPS were HK19.53 cents, down from HK28.82 cents.

• Interim dividend declared at HK$0.05 per share (2025: HK$0.07).

• Cash and cash equivalents stood at HK$806.6 million as of 30 June 2026.

Outlook and guidance

• The Group is adapting to regulatory headwinds in the PRC by focusing on compliance, digital engagement, and innovation.

• Continued investment in R&D and expansion into new therapeutic areas such as oncology and neurology.

• Construction of a second factory in Zhuhai is nearing completion to support future growth.