---
title: "Essex Bio-Technology Reports Profit Decline but Strong Balance Sheet in First-Half 2026"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294969769.md"
description: "Essex Bio-Technology (HK:1061) reported a weaker first half of 2026, with turnover falling 10.5% to HK$784.7 million and profit dropping 32.2% to HK$110.7 million. Despite margin pressure and a dividend cut to HK5.0 cents, the company maintained a solid balance sheet with total assets up 3.6%, a stable gearing ratio of 0.30, and strong liquidity. This financial resilience aims to support operations amid short-term profitability challenges in the competitive biopharmaceutical sector."
datetime: "2026-08-05T11:39:32.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294969769.md)
  - [en](https://longbridge.com/en/news/294969769.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294969769.md)
generator: "portal-rs"
---

# Essex Bio-Technology Reports Profit Decline but Strong Balance Sheet in First-Half 2026

Essex Bio-Technology ( (HK:1061) ) just unveiled an update.

Essex Bio-Technology reported a weaker first half for 2026, with turnover falling 10.5% to HK$784.7 million and profit for the period dropping 32.2% to HK$110.7 million, reflecting pressure on margins as gross profit margin slipped to 83.6% and net profit margin to 14.1%. Earnings per share declined to HK19.53 cents and the interim dividend was cut to HK5.0 cents, but the group maintained a solid balance sheet, with total assets up 3.6%, net assets rising 5.6% and a stable gearing ratio of 0.30, suggesting continued financial resilience despite short-term profitability challenges.

The company’s cash and cash equivalents edged higher to HK$806.6 million and its current ratio improved to 2.15, underscoring strong liquidity to support ongoing operations and potential investment needs. While return on equity fell to 4.3% from 7.2% amid lower earnings, the strengthened equity base and modest reduction in liabilities indicate Essex Bio-Technology remains conservatively financed, which may help it navigate market headwinds and preserve its position in the competitive biopharmaceutical industry.

**More about Essex Bio-Technology**

Essex Bio-Technology Limited is a Cayman Islands-incorporated biopharmaceutical company listed in Hong Kong that focuses on ophthalmic and other pharmaceutical products. The group generates revenue primarily from the sale of its drug portfolio in mainland China and other markets, positioning itself within the broader healthcare and life-sciences sector.

**Average Trading Volume:** 561,487

**Technical Sentiment Signal:** Strong Sell

**Current Market Cap:** HK$1.38B

Find detailed analytics on 1061 stock on TipRanks’ Stock Analysis page.

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**