Porton swings to loss on Slovenia writedown, but core profit and CGT license advance
Slovenia project termination triggers 330 million yuan impairment and first-half loss Porton expects a first-half 2026 net loss of 210-250 million yuan, versus a profit last year, after scrapping its Slovenia R&D and production base and taking a roughly 330 million yuan writedown. The final interim report confirmed a 224 million yuan loss. This one-time hit is the main reason the stock looks weak on headline numbers.
The impairment is the single biggest swing factor behind the reported loss and the market's negative reaction.
Core profit surges 196-343% excluding impairment on higher revenue and margins Strip out the Slovenia writedown and Porton's underlying profit was 80-120 million yuan, up 196-343% from a year earlier. Revenue rose 8-12% to 1.75-1.82 billion yuan, and gross margin improved about 4 percentage points on higher-margin product deliveries. This shows the operating business is actually getting healthier.
It separates the one-time loss from the real operating performance, which is what long-term investors care about.
Suzhou subsidiary wins first drug manufacturing license for cell and gene therapy Porton's majority-owned Suzhou unit obtained a drug manufacturing license, allowing it to commercially make cell and gene therapy products for clients. This opens a new, higher-value contract manufacturing business and supports future revenue growth beyond its traditional small-molecule work.
It is a concrete regulatory milestone that expands Porton's addressable market into a fast-growing area.
CRO sector rally lifts peers and Porton shares WuXi AppTec's blowout first-half results and raised guidance sent CRO stocks soaring, with the sector index up nearly 8% and Porton hitting its daily limit. Strong demand for outsourced drug development is lifting the whole group, though global GLP-1 capacity expansion is raising competition.
Sector momentum is a major short-term price driver for Porton, even if it is not company-specific.