The United Laboratories International Holdings Limited Issues Profit Warning for FY2025

Key Points from the Announcement

• The United Laboratories International Holdings Limited (“TUL” or “the Company”, Stock Code: 3933) expects its profit for the fiscal year ended 31 December 2025 to be approximately RMB2,000,000,000, a significant decrease compared to the profit of RMB2,658,000,000 reported for FY2024.
• The primary reason for the profit drop is a decline in market prices for Intermediate Products and Bulk Medicine during FY2025.
• Segment profit for Intermediate Products fell by about RMB1,600,000,000, and Bulk Medicine dropped by approximately RMB400,000,000 compared to the prior year.
• Segment profit of Finished Products saw a substantial increase of RMB1,400,000,000, primarily driven by a license fee income from Novo Nordisk A/S of about RMB1,300,000,000.
• The license fee income partially offset the losses in Intermediate Products and Bulk Medicine segments.

Potentially Price Sensitive Information

• Profit Warning: The Company explicitly warns of a profit decline, which is typically regarded as a price-sensitive event and may impact investor sentiment and share valuation.
• Segment Volatility: Investors should note the sharp decline in profits from Intermediate Products and Bulk Medicine, sectors historically significant to TUL’s earnings. This signals possible ongoing challenges in these segments or shifts in market demand and pricing.
• License Fee from Novo Nordisk A/S: The substantial one-off license fee income from Novo Nordisk A/S contributed about RMB1,300,000,000 to Finished Products segment profit. While this boosted results, it may not be recurring, so investors should assess sustainability of future profits.
• Unfinalized Results: The figures presented are based on unaudited management accounts and have not been reviewed by the audit committee or audited by external auditors. Final results may differ, introducing additional uncertainty.
• Cautionary Advice: The Board advises shareholders and potential investors to exercise caution when dealing in the Company’s shares until the final annual results are published.

Detailed Insights for Investors

The Company’s Board attributes the profit decrease mainly to unfavorable market dynamics impacting both Intermediate Products and Bulk Medicine. The combined segment profit drop of RMB2,000,000,000 was only partially offset by robust growth in Finished Products, which benefited from a significant license fee income from a major pharmaceutical partner, Novo Nordisk A/S.

This development points to increased reliance on licensing deals rather than core manufacturing operations for earnings expansion. Investors should closely monitor future announcements to determine if this marks a strategic pivot or is merely an exceptional event.

The announcement underscores that the reported figures are preliminary and may change upon completion of the audit process. Detailed annual results will be disclosed in the Company’s forthcoming annual results announcement and annual report for 2025.

The Board composition was also noted, with a mix of executive and independent non-executive directors, ensuring governance oversight.

What Shareholders Should Watch

• Potential volatility in share price due to the profit warning and segment losses.
• Possible change in dividend policy or capital allocation, depending on sustained profitability.
• Future updates from the Company regarding audited results and any strategic shifts.
• Market response to reliance on licensing income and implications for future growth.

Disclaimer

The information provided in this article is based on the unaudited management accounts and public disclosures from The United Laboratories International Holdings Limited as of 12 March 2026. Final audited figures may differ. Investors are advised to exercise caution and not rely solely on this information for investment decisions.

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