China National Pharmaceutical Group Corporation: It is expected that the net profit in the first quarter of 2026 will decrease by 65.03% to 58.94% year-on-year.

Guoyao Modern announced that it is expected that the net profit attributable to shareholders of the listed company in the first quarter of 2026 will be between 126 million yuan and 148 million yuan, a year-on-year decrease of 65.03% to 58.94%. The main reason for the decrease in performance in this period is the impact of factors such as the acceleration of localization and return flow of the global raw material pharmaceutical industry, the intensification of trade protectionism in India and the United States, overcapacity in domestic antibiotic production, the continuous transmission of centralized procurement policies, and a decrease in demand from some core customers, resulting in overall pressure on the antibiotic pharmaceutical intermediate and raw material pharmaceutical industry. Faced with a severe situation, the company took initiative to compete for market share by trading price for volume, leading to a substantial decrease in gross profit margin in the pharmaceutical intermediate and raw material pharmaceutical sector, from 32.65% in the same period of the previous year to 15.35%, which led to a decrease in net profit attributable to shareholders of the listed company in this period by more than 50% compared to the same period of the previous year.