Chongqing Zhifei Biological Products Co (300122) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 4.02 billion, down 18.36% year-over-year, with net loss attributable to shareholders of RMB 808.5 million, a 33.35% wider loss than H1 2025.

• The company faced industry policy adjustments, lower vaccination willingness, and shifting market demand, but maintains confidence in long-term growth driven by innovation and policy support.

• R&D investment reached RMB 566 million (14.07% of revenue), with over ten pipeline projects achieving key milestones.

• Strategic partnerships were deepened, notably with Merck, and the first metabolic disease biologic (liraglutide injection) was approved for market.

Financial highlights

• Operating cash flow increased 21.64% year-over-year to RMB 1.97 billion.

• Gross margin on self-developed products was 72.8%, while agent products saw a margin of 11.95%.

• R&D expenses decreased 21.8% year-over-year; sales expenses fell 28.79%.

• Total assets at period-end were RMB 27.82 billion, down 12.3% from year-end 2025.

• Asset-liability ratio was 45.05%, with a current ratio of 2.98.

Outlook and guidance

• The company expects industry recovery as vaccination willingness rebounds and innovative products launch.

• Focus remains on expanding adult and international vaccine markets, and accelerating commercialization of metabolic disease drugs.

• No interim dividend or bonus shares planned for H1 2026.