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On April 22, HENGRUI PHARMA released its first-quarter report. During the reporting period, the company achieved operating revenue of 8.141 billion yuan, an increase of 12.98% year-over-year; net profit attributable to shareholders of the listed company was 2.282 billion yuan, up 21.78% year-over-year, with profit growth outpacing revenue growth. Net cash flow from operating activities was 786 million yuan, representing a 41.66% year-over-year increase.
Innovative drug business becomes the core growth engine. First-quarter innovative drug sales revenue reached 4.526 billion yuan, up 25.75% year-over-year, accounting for more than 60% of pharmaceutical sales revenue for the first time, rising to 61.69%. The company stated its aim to achieve over 30% growth in innovative drug sales revenue for the full year. Meanwhile, milestone income from external licensing agreements with GSK continued to materialize, with 787 million yuan recognized in a single quarter, further solidifying the revenue base.
Regarding R&amp;D, cumulative investment in the first quarter totaled 2.224 billion yuan, of which 1.651 billion yuan was expensed as R&amp;D investment. During the period, 3 innovative achievements were approved for market launch or gained additional indications, 8 new drug marketing applications were accepted, and 6 products received breakthrough therapy designations from the CDE, significantly accelerating the pace of pipeline advancement.
Cash flow and balance sheet structure remain robust. Net cash flow from operating activities increased by 41.66% year-over-year, while cash and cash equivalents at the end of the period exceeded 40.5 billion yuan, providing ample financial flexibility for the company's R&amp;D investment and commercial expansion.
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<h2>Innovative Drugs Drive Volume Growth, Non-Oncology Products Show Impressive Speed</h2>
Within the innovative drug revenue structure, anti-tumor products remain the core pillar, generating 3.313 billion yuan in revenue during the first quarter, a 11.63% year-over-year increase, accounting for 73.20% of total innovative drug sales revenue. Non-oncology products performed exceptionally well, with revenue reaching 1.213 billion yuan, a significant 92.13% year-over-year surge, raising their share to 26.80%. This rapid growth indicates that the company's innovation pipeline outside oncology is gradually entering the harvest phase, making the trend of product diversification increasingly clear.
Regarding external licensing business, revenue of 787 million yuan was recognized during the reporting period, primarily based on revenue recognition by GSK according to the progress of performance obligations, providing additional support for overall revenue.
Generic drug revenue declined somewhat due to factors such as national and local centralized procurement and the company's strategic resource contraction. The company stated that as innovative drug revenue continues to grow, the proportion of generic drugs in total sales revenue will gradually decline, and the revenue structure is expected to further optimize.
<h2>Dense Pipeline Realization, Multiple Innovative Achievements Reach Key Milestones</h2>
In terms of R&amp;D progress, HENGRUI PHARMA achieved several important breakthroughs in the first quarter.
At the level of approvals for market launch and additional indications, the company had 3 innovative achievements approved. Among them, the self-developed Class 1 innovative drug Relifuprep Alpha Injection was approved for market launch. It is the world's first bispecific antibody fusion protein targeting PD-L1/TGF-βRII, approved for first-line treatment of PD-L1-positive locally advanced unresectable, recurrent, or metastatic gastric and gastroesophageal junction adenocarcinoma.
The HER2 ADC product Rui Kang Trastuzumab for Injection gained approval for an additional breast cancer indication and was included in the 2026 version of the Chinese Clinical Oncology Society Breast Cancer Diagnosis and Treatment Guidelines within one month of approval. Haituopipa Ethanolamine Tablets gained approval for an additional first-line indication for severe aplastic anemia, becoming the first and only thrombopoietin receptor agonist approved for this indication in China.
Regarding marketing applications, 8 new drug marketing applications were accepted during the reporting period, covering multiple therapeutic areas including HER2-positive colorectal cancer, homozygous familial hypercholesterolemia, and type 2 diabetes. In clinical R&amp;D, a total of 26 Clinical Trial Approval Notices were obtained; since the beginning of 2026, 6 products have received CDE breakthrough therapy designations, including HRS-4642 Injection targeting KRAS G12D and HRS-5346 Tablets targeting Lp(a), among others.
<h2>Solid Financial Fundamentals, Dual Increase in R&amp;D and Sales Investment</h2>
Regarding the balance sheet, as of March 31, 2026, HENGRUI PHARMA's total assets amounted to 71.294 billion yuan, an increase of 2.04% from the end of the previous year; owners' equity attributable to shareholders of the listed company was 63.626 billion yuan, up 3.84% from the end of the previous year. Cash and cash equivalents on the company's books reached 40.527 billion yuan, reflecting a stable overall financial position.
On the expense side, sales expenses for the first quarter were 2.197 billion yuan, and R&amp;D expenses were 1.651 billion yuan, both increasing year-over-year, reflecting the company's active stance in both commercial promotion and R&amp;D investment.

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HENGRUI PHARMA's Q1 report shows revenue of 8.141 billion yuan, up 12.98% year-over-year; net profit attributable to parent company shareholders reached 2.282 billion yuan, a 21.78% increase. The share of innovative drug sales revenue exceeded 60% for the first time, reaching 61.69%, with non-oncology product revenue surging 92.13% year-over-year, highlighting a clear diversification trend. During the reporting period, cumulative R&D investment stood at 2.224 billion yuan, with 3 innovative achievements approved and 8 new drug marketing applications accepted, accelerating the pipeline progression

- On April 22, 2026, Heng Rui Medicine released its Q1 report, showing a revenue of 81.41 billion yuan, a 12.98% year-on-year increase.  
- The innovative drug business emerged as the core growth engine, with sales reaching 45.26 billion yuan, representing 61.69% of total revenues, and the company aims for over 30% growth in annual innovative drug sales.  
- Despite a decline in generic drug revenues due to strategic adjustments, the robust growth in non-tumor products reflects the successful diversification of the company's innovative pipeline.

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Innovative Drug Revenue Share Surpasses 60% for First Time, HENGRUI PHARMA Q1 Revenue Hits 8.14 Billion Yuan, Net Profit Up 22% | Earnings Report