Huisheng Biotech reported stronger first-half 2026 earnings despite weak conditions in China's livestock farming sector, with net profit attributable to shareholders rising 75.59% year on year to 206 million yuan ($30.6 million). Revenue increased 5.20% to 865 million yuan ($128.3 million), non-GAAP net profit climbed 43.26% to 142 million yuan ($21.1 million), operating cash flow rose 3.57% to 128 million yuan ($19.0 million), and basic earnings per share reached 1.0169 yuan. Performance diverged across business lines as chemical drug formulations fell 2.28% while veterinary APIs (active pharmaceutical ingredients, drug-making raw materials) grew 13.56%. The company said veterinary API gross margin expanded by 14.91 percentage points from a year earlier, supported by cost optimization and higher product prices, with a green equipment upgrade project for veterinary API production helping improve the cost structure. Overseas markets emerged as the strongest growth driver, with sales revenue surging 72.79% year on year as domestic demand stayed soft. Huisheng Biotech said it will continue to focus on technological innovation, business transformation and industrial footprint expansion, while pushing overseas growth and developing its pet health business to reduce reliance on any single market. R&D spending rose 70.54% from a year earlier, underscoring its push to deepen its "API-formulation integration" strategy. The results suggest the company's strategic shift during an industry downturn is beginning to show through, though risks remain around the recovery pace of China's livestock sector and whether overseas growth can be sustained through channel expansion and product registrations.