Shenyang Xingqi Pharmaceutical Co Ltd

Shenyang Xingqi Pharmaceutical Co., Ltd. announced on September 11 that it has received a Drug Clinical Trial Approval Notice from the National Medical Products Administration for SQ-23082 eye drops, granting permission to conduct clinical trials. The product is indicated for the treatment of ocular itching associated with allergic conjunctivitis, registered as a Class 2.1 modified new chemical drug, in the form of eye drops. The company stated that it has completed pharmaceutical studies and non-clinical pharmacological and toxicological research on SQ-23082 eye drops, with results demonstrating good safety and clinical development value. Currently, no such ophthalmic preparation is marketed domestically or internationally. The company also cautioned that pharmaceutical product development involves long cycles and multiple stages, and that clinical trial progress and outcomes remain uncertain.

Xingqi Pharmaceutical released its 2026 interim report, with total operating revenue of 1.401 billion yuan and net profit attributable to the parent company of 430 million yuan. Net cash inflow from operating activities was 393 million yuan, the asset-liability ratio was 21.15%, gross margin was 82.29%, return on equity was 19.90%, and diluted earnings per share was 1.20 yuan. Total asset turnover was 0.53 times, and inventory turnover fell 8.08% year on year. The number of shareholders was 48,500, and the top ten shareholders held 33.55% of total share capital.

Xingqi Pharmaceutical disclosed its 2026 semi-annual report on August 28. In the first half, total operating revenue reached 1.401 billion yuan, up 20.48% year on year; net profit attributable to the parent was 430 million yuan, up 28.55%; and non-GAAP net profit was 432 million yuan, up 30.40%. The company plans to distribute a cash dividend of 3 yuan per 10 shares, tax included, to all shareholders. As of the end of the first half, net operating cash flow was 393 million yuan, up 28.77% year on year. The company is a specialized ophthalmic pharmaceutical enterprise with leading domestic R&D capabilities and a broad product portfolio.

Xingqi Pharmaceutical announced on August 27 that it plans to distribute a cash dividend of 3 yuan per 10 shares, including tax, to all shareholders, with an estimated total payout of 106 million yuan. In the first half of 2026, the company achieved revenue of 1.401 billion yuan and net profit attributable to the parent of 430 million yuan.

Xingqi Pharmaceutical released its 2026 interim report, showing first-half net profit attributable to the parent of 430 million yuan, up 28.5% year-on-year. Operating revenue was 1.4 billion yuan, up 20.5% year-on-year; non-GAAP net profit attributable to the parent was 432 million yuan, up 30.4%; net operating cash flow was 393 million yuan, up 28.8%; earnings per share were 1.2127 yuan. In the second quarter, operating revenue was 718 million yuan, up 14.5% year-on-year, and net profit attributable to the parent was 224 million yuan, up 18.6%. As of the end of the second quarter, total assets were 2.743 billion yuan, up 8.0% from the end of the previous year, and net assets attributable to the parent were 2.163 billion yuan, up 9.4%. The company said that during the reporting period it advanced digital transformation, adopted a contract manufacturing model for some products, and made progress in research and development, including clinical trial approvals for new drugs and registration certificates.

The A-share buyback wave is accelerating, with multiple industry leaders intensively disclosing progress. Panel leader BOE Technology had repurchased 500 million yuan of A-shares by July 31, reaching the lower limit of its buyback plan, taking only about half a month since the first repurchase on July 20. The company also simultaneously repurchased B-shares for 393 million Hong Kong dollars, shortly after completing a round of over 4 billion yuan in A-share buybacks at the end of May. Eye drug leader Shenyang Xingqi Pharmaceutical completed its 80 million to 100 million yuan buyback plan in just about a week, with the payment amount reaching 100 million yuan as of August 4. Innovative drug leader Hengrui Medicine had cumulatively paid 853 million yuan for buybacks as of July 31, while dental service leader Topchoice Medical's buyback amount reached 88.75 million yuan in the same period, approaching 90 percent of the 100 million yuan plan cap.

Qilu Pharmaceutical's marketing application for atropine sulfate eye drops, filed under chemical drug registration category 2.2, was accepted by the Center for Drug Evaluation of the National Medical Products Administration on July 24. The indication is to slow the progression of myopia in children. Currently, only Xingqi Pharmaceutical's 0.01% atropine sulfate eye drops have been approved for marketing in this field, in March 2024, with nationwide sales reaching 603.6 million yuan in 2025, a year-on-year increase of 212%. Similar products from companies such as Hengrui Medicine's subsidiary Shengdi Pharmaceutical and Zhaoke Ophthalmology have also entered the marketing application stage, while Ocumension Therapeutics, Shapuaisi, and JMD Biomed are in late-stage clinical trials. Qilu Pharmaceutical stated that it is currently only an application, and the specific launch time is uncertain.

Zhaoke Ophthalmology announced it has acquired the global rights to NVK002 atropine sulfate eye drops, a product designed to slow the progression of myopia in children. Under the agreement, Zhaoke Ophthalmology will obtain global ownership of all intellectual property, trademarks, regulatory filings, clinical data, manufacturing capabilities, and other assets related to NVK002. Previously, the company only held exclusive licenses for Greater China, South Korea, and some Southeast Asian countries. As part of the transaction, Zhaoke Ophthalmology granted the seller a perpetual, royalty-free exclusive license for development and commercialization in the United States. After the acquisition, the company will have full control over the global development, manufacturing, and commercialization of the product. Currently, only Xingqi Ophthalmology has received approval for atropine sulfate eye drops in China. Zhaoke Ophthalmology has submitted marketing applications for two strengths of NVK002 as a modified new drug and a generic drug respectively, with approval expected within the year. Several other pharmaceutical companies, including Hengrui Medicine and Ocumension Therapeutics, are also developing similar products.

The National Health Commission and two other departments have officially released the National Essential Medicines List 2026 Edition, which will take effect on September 1, 2026. This marks the fourth adjustment, coming eight years after the 2018 update. The new list includes a total of 794 medicines, comprising 476 chemical and biological products and 318 traditional Chinese patent medicines, with 116 new additions and two removals. For the first time, the adjustment attempted to include innovative drugs, ultimately adding four domestic Class I new drugs, including three chemical and biological products and one traditional Chinese patent medicine. Products from several A-share companies were selected, including Novo Nordisk's semaglutide injection, Yiling Pharmaceutical's Jieyu Chufan Capsules, Zuoli Pharmaceutical's Bailing Capsules, Xingqi Pharmaceutical's gatifloxacin ophthalmic gel, and Jumpcan Pharmaceutical's Xiaoer Chiqiao Qingre Granules. The new list covers 71 percent of the total variety of medicines used in public medical and health institutions nationwide, with essential medicine usage proportions of 78 percent, 74 percent, and 65 percent at primary, secondary, and tertiary public institutions respectively.

Xingqi Pharmaceutical announced that the Phase II clinical trial of its SQ-22031 eye drops for the treatment of neurotrophic keratitis has yielded a clinical study report. The trial results showed that the high-dose group of SQ-22031 eye drops demonstrated superior efficacy benefits and a favorable safety profile, supporting the high dose as the proposed dose for the Phase III clinical trial. As of the announcement date, no similar drug has been approved for marketing in China, and this drug is a Class 1 therapeutic biological product. This report will not have a significant impact on the company's near-term performance.