Profit Collapse Offset by Drug Approvals and Pipeline Progress
Interim Profit Plunges 90% First-half 2026 net profit fell 89.97% to 3.72 million yuan on revenue of 320 million yuan, down 7.72%. This weak result is the main drag on the stock, showing core earnings are under heavy pressure despite better cash flow.
The profit collapse is the single biggest negative force on the stock this period.
New Drug Approvals Expand Product Line The subsidiary won registration certificates for labetalol hydrochloride tablets (hypertension) and diquafosol sodium eye drops (dry eye). These add approved products to sell, supporting future revenue, though both face competition and are not immediate profit drivers.
Two regulatory approvals are concrete new products that can generate future sales.
Procurement Win and Pipeline Milestones Baricitinib tablets were selected in the 12th national centralized procurement, guaranteeing hospital sales volume. Separately, cisplatin polymeric micelle won clinical trial approval and CKBA cream showed strong Phase IIa rosacea results, advancing the innovative pipeline.
These are the main growth catalysts: guaranteed procurement volume plus clinical progress.
Buybacks and Cell Therapy Deal Support Sentiment The company repurchased 2.43 million shares for 48.44 million yuan, signaling confidence. It also secured exclusive China promotion rights for an ocular surface cell therapy product, though that deal is a framework arrangement with no near-term earnings impact.
Buybacks and a strategic partnership are supporting forces, but both are modest in effect.