Asymchem Laboratories (Tianjin) (002821) Q2 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 reached RMB3,607 million, up 13.13% year-over-year, with gross profit margin at 41.99%.

• Adjusted net profit rose 12.90% to RMB753 million, while reported net profit attributable to shareholders declined 15.71% to RMB520 million, mainly due to exchange rate fluctuations.

• Domestic revenue surged 68.95% year-over-year, while overseas revenue grew 1.00% at constant exchange rates.

• The company expects full-year 2026 revenue growth of 19%-22% and reported a 53.77% increase in order backlog year-over-year.

Financial highlights

• Gross profit increased 16.91% year-over-year at constant exchange rates, with a margin of 41.99%.

• Net profit margin attributable to shareholders was 14.43%, down 4.94 percentage points year-over-year.

• Basic and diluted EPS both decreased to RMB1.45 from RMB1.68 in the prior year period.

• Cash and bank balances decreased by 12.63% to RMB6,320.95 million due to capital expenditures and dividend payments.

• Gearing ratio increased to 14.81% from 12.98% at year-end 2025.

Outlook and guidance

• Full-year 2026 revenue is projected to grow by 19%-22%.

• The company will focus on expanding emerging businesses (chemical and biological macromolecule CDMO) and maintain steady growth in small molecule CDMO.

• Emphasis will shift from cost reduction to cost control and efficiency improvement to enhance profit margins.