Profit Halved, but Drug Pipeline and Global Deal Advance
Interim Profit Halved First-half 2026 net profit fell 51.64% to 475 million yuan as revenue dropped 16.06%. This is the single biggest drag on the stock because it shows the core business is shrinking, even though operating cash flow rose 40.92%.
The profit decline is the main negative force on the stock this period.
Pipeline Wins Keep Coming The company's GeneScience unit won Chinese regulatory acceptance or approval for four new drug candidates: Jintuoximab for gastric cancer, GenSci136 for lupus, GenSci144 for chronic kidney disease, and GenSci133 for osteoporosis. These add future revenue sources, though trials can still fail.
These pipeline advances are the main positive driver and show where future growth may come from.
Osteoporosis Drug Trial Approved GenSci133 injection received clinical trial approval for osteoporosis. It is a long-acting biologic that may be injected only every three to six months, which could make it easier for patients to use and strengthen the company's endocrine and metabolic product line.
This is a concrete regulatory step forward for a key pipeline asset.
Global Rights Deal and New Approval The company is paying $30 million plus up to $70 million in milestones for worldwide rights to Megace, a drug already on China's insurance list. Separately, its leuprorelin injection for prostate cancer received a registration certificate, expanding the marketed product portfolio.
These two events add global reach and a new approved product, supporting future sales.