Recently, Hengrui Pharmaceutical disclosed the "Announcement on the First Repurchase of Company's A-shares", announcing the repurchase of 335000 A-shares through centralized bidding trading on the same day, at a cost of 14.5036 million yuan (excluding transaction costs).
According to the announcement, Hengrui Pharmaceutical held the fourth meeting of the tenth board of directors on August 19, 2026, and approved the repurchase plan. We plan to use 1 billion to 2 billion of our own funds to repurchase shares, with a maximum repurchase price set at 81.78 yuan per share. The expected number of shares to be repurchased is between 12.2279 million and 24.4559 million, accounting for 0.18% to 0.37% of the total share capital. The entire repurchase cycle will last for one year and end on August 18, 2027.
It is worth noting that before the launch of this repurchase, Hengrui Pharmaceutical had just completed the previous round of share repurchase. On September 4, 2025, the company implemented its first share repurchase through centralized bidding trading. The repurchase period will expire on August 19, 2026, and the share repurchase will be completed. The average repurchase price is about 60.51 yuan per share, and the total transaction amount is 1.004 billion yuan (excluding transaction costs).
Industry analysis believes that Hengrui Pharmaceutical immediately launched a new round of 1-2 billion yuan buybacks at the end of the previous round of 1 billion yuan buybacks. The direct cause may be the stock price decline after the release of the 2026 semi annual report, and the company needs to use real money to convey confidence to the market. At the same time, it is also to further strengthen the employee incentive mechanism and bind core talents.
It is reported that on August 19, 2026, Hengrui Pharmaceutical released its semi annual report, which showed that during the reporting period, the company's revenue was 15.456 billion yuan, a year-on-year decrease of 1.94%, and the net profit attributable to the parent company was 4.465 billion yuan, a slight increase of 0.34% year-on-year; The product sales revenue was 13.948 billion yuan, a year-on-year increase of 1.87%.
Overall, the performance is stable with some growth, but when broken down, Q2 revenue decreased by 14.5% year-on-year; Deducting non recurring net profit decreased by 12.71% year-on-year, and after excluding non recurring gains such as changes in fair value of financial assets, the real operating profit is shrinking; After excluding external licensing revenue, the growth rate of regular business is only 1.87%.
In addition, the shares repurchased in both rounds are clearly intended for employee stock ownership plans or equity incentives. During periods of performance pressure, repurchasing low-priced shares as incentives can not only reduce incentive costs, but also deeply link the interests of the core team with the long-term value of the company. It is reported that Hengrui's R&D investment in the first half of 2026 reached 4.605 billion yuan, a year-on-year increase of 18.96%, accounting for 29.8% of its revenue. High intensity research and development requires stable core team support.
Overall, the purpose of Hengrui's two consecutive repurchases is to use capital means to gain a time window for strategic transformation. The revenue decline and non recurring profit contraction exposed in the semi annual report are the "pains" of the transition period, while buybacks are a signal from management to the market that "long-term value remains unchanged". But whether we can truly reverse market expectations and achieve new performance in the future will still depend on the timing of BMS down payment confirmation, the sustainability of innovative drug volume, and whether global cooperation can continuously generate new milestone revenue for the company.