Tonghua Dongbao Pharmaceutical’s 2025 Half‑Year Performance and Strategic Outlook
Tonghua Dongbao Pharmaceutical Co., Ltd. (600867.HK) announced its 2025 first‑half results on 9 October, revealing a dramatic turnaround that underscores the company’s renewed focus on diabetes‑related products and its ambition to broaden its therapeutic portfolio.
Record‑breaking earnings and revenue growth
- Operating revenue: 1.373 billion CNY, an 85.6 % jump year‑on‑year.
- Net profit attributable to shareholders: 218 million CNY, turning a loss of 230 million CNY in the same period of the previous year into a profit.
- Adjusted net profit (excluding non‑recurring items): 221 million CNY, compared with a loss of 229 million CNY previously.
- Basic earnings per share: 0.11 CNY, a stark improvement that reflects the company’s ability to generate cash flow from its core businesses.
The surge is largely driven by the company’s insulin analog sales, which surpassed 200 % year‑on‑year growth in the first half. The company attributes this to an anticipated new centralized procurement (“集采”) initiative that will open significant channels for insulin analog distribution across the domestic market.
Strategic R&D pipeline and product diversification
Tonghua Dongbao has positioned itself as a diabetes and endocrine solutions provider. Its current product suite includes insulin pens and needles, high‑quality blood‑glucose monitoring systems, and a comprehensive patient‑management platform that spans online and offline services. The company’s ambition is to cement its status as a leading domestic player in the diabetes arena.
The 2025 earnings briefing also highlighted several key R&D initiatives:
| Product | Development Stage | Target Market |
|---|---|---|
| Rapid‑acting insulin analogs | Commercial | Domestic and overseas markets |
| Deutered insulin (Lantus) BLA | FDA review pending | U.S. market |
| Glycated insulin (GLP‑1/GIP dual‑target agonists) | Clinical | New indications (weight loss, gout) |
| Weekly GLP‑1/GIP dual agonist | Clinical | Weight management |
| THDBH120 injection (weight‑loss indication) | Phase II (first patient dose completed) | Weight management |
These initiatives are part of a broader strategy to expand into new therapeutic indications—particularly weight loss and gout—while simultaneously improving cost efficiencies through accelerated translation of research findings into production and by leveraging tax incentives.
International expansion and regulatory milestones
- U.S. FDA BLA for Lantus (human insulin) has been received; subsequent approvals for other insulins (Glycated, Liraglutide) are underway.
- European and large developing‑country registration efforts for insulin analogs are progressing in an orderly fashion, supported by the company’s clinical data and regulatory strategy.
- The company is also building risk‑management frameworks to support its overseas operations, signaling a mature approach to global commercialization.
Market outlook and investor communication
The company’s management emphasized that the domestic insulin market is projected to remain stable for the next three years. They see sustained growth driven by the launch of new products and expansion into additional therapeutic areas. Tonghua Dongbao is committed to transparent investor relations and intends to enhance the market’s understanding of its value proposition and long‑term prospects.
Corporate governance and share‑ownership initiatives
Separately, the company completed the non‑trading transfer of its employee‑stock‑ownership plan in October 2025, underscoring its dedication to aligning employee incentives with shareholder interests. The transition is expected to reinforce the company’s long‑term growth trajectory.
In summary, Tonghua Dongbao Pharmaceutical’s 2025 first‑half results illustrate a company that has successfully pivoted from a struggling past to a robust, innovation‑driven future. Its focus on insulin analogs, coupled with an expanding pipeline and a clear international strategy, positions it as a formidable player in both domestic and global markets. The firm’s financial turnaround, coupled with its strategic R&D and market expansion plans, offers investors a compelling narrative of resilience and growth.
