Hualan Biological Engineering (002007) investor relations material

Executive summary

• Revenue for H1 2026 was ¥1.57 billion, down 12.88% year-over-year; net profit attributable to shareholders was ¥383 million, down 25.69%.

• Main business includes plasma-derived products, vaccines, and biopharmaceuticals, maintaining industry leadership in China.

• The company faced industry-wide headwinds: lower demand due to healthcare reforms, increased competition, and higher VAT rates.

• Cash flow from operations increased 48.68% year-over-year, reflecting improved collections and cost control.

Financial highlights

• Operating income: ¥1.57 billion, -12.88% year-over-year; net profit: ¥383 million, -25.69%.

• Gross margin for plasma products declined due to price pressure and higher costs.

• R&D expenses were ¥125 million, down 22.40% year-over-year.

• Total assets at period end: ¥14.55 billion, down 4.68% from year-end 2025.

• Non-recurring gains totaled ¥41.4 million, mainly from investment returns and government subsidies.

Outlook and guidance

• The company will focus on expanding plasma collection, optimizing product mix, and accelerating R&D for new drugs and vaccines.

• Plans to further internationalize sales and strengthen digital transformation.

• Management expects continued industry challenges but aims for stable growth through innovation and efficiency.