What happened
In the first half of 2026, Xingqi Pharmaceutical reported revenue of 1.401 billion yuan, up 20.48% year on year, and attributable net profit of 430 million yuan, up 28.55%. Excluding non-recurring items, net profit rose 30.4% to 432 million yuan.
Eye drops were the main growth engine, with segment revenue up 24.2% to 1.122 billion yuan and category share of total revenue climbing to 80.06%. Cyclosporine eye drops (II) and atropine sulfate eye drops were the only products each contributing more than 10% of main-business revenue.
Competitive pressure is building. Hengrui and Kanghong dry-eye products were approved in 2025, and Hengrui's cyclosporine eye drops (IV) launched in mid-August 2026. In myopia control, atropine sulfate eye drops from Hengrui, Zhaoke and Qilu are in late-stage regulatory review.
Why it matters
Xingqi's recent performance has been driven by two first-mover blockbusters, but the exclusive window is closing as multiple rivals enter both dry-eye and myopia prevention markets. Analysts cited in the report say sustaining the current growth rate will be the real challenge once competitors take share.
The company had planned to raise up to 850 million yuan through a private placement to expand R&D, but it ultimately terminated the plan, citing market conditions and company circumstances. That leaves Xingqi to defend its core products and build new pipeline with existing resources.
Key facts
H1 2026 revenue was 14.01 billion yuan (up 20.48%), attributable net profit was 4.3 billion yuan (up 28.55%), and adjusted net profit was 4.32 billion yuan (up 30.4%).
Eye drop revenue grew 24.2% to 11.22 billion yuan, lifting the category's share of total revenue to 80.06% from 78.87% in 2025.
Cyclosporine eye drops (II) sales expanded from 1.72 billion yuan in 2022 to 7.21 billion yuan in 2025, about 4.2 times, with a three-year compound growth rate of roughly 61.2%.
Hengrui's cyclosporine (IV) was launched in August 2026, and atropine candidates from Hengrui, Zhaoke and Qilu have each had listing applications accepted.
What to watch next
How quickly rivals' products take share in dry-eye and myopia markets, particularly Hengrui's cyclosporine (IV) and atropine candidates from Zhaoke and Qilu.
Whether Xingqi can maintain revenue and profit growth above 20% while advancing its three-concentration atropine lineup and building fundus-disease pipeline without the planned capital raise.