Hangzhou Jiuyuan Genetic Biopharmaceutical (2566) H1 2026 earnings summary

Executive summary

• H1 2026 revenue fell 1.2% YoY to RMB631.0m, while net profit rose 1.2% to RMB91.3m.

• Lower Guyoudao average selling prices and receivables-focused order management weighed on goods sales; pharmaceutical services growth and lower selling and administrative expenses provided offsets.

• R&D and overseas commercialization advanced, including JY54 entering clinical development and the first Guyoudao export to Indonesia.

Financial highlights

• Revenue was RMB631.0m versus RMB638.8m; gross profit was RMB511.9m versus RMB525.2m.

• Profit for the period increased to RMB91.3m from RMB90.2m; profit before tax was RMB104.1m versus RMB104.3m.

• Goods sales fell 5.0% to RMB590.4m, while pharmaceutical services rose 138.2% to RMB40.5m, driven by commissioned manufacturing.

• Selling and marketing expenses declined to RMB314.8m from RMB345.4m; R&D costs rose to RMB69.3m from RMB49.6m as projects progressed.

• Income tax expense decreased to RMB12.8m from RMB14.1m, with higher deductible R&D allowances contributing to the reduction.

Outlook and guidance

• H2 priorities include pipeline advancement, channel penetration, cost and expense control, and export growth; management expects steady operations as pharmaceutical policy impacts gradually subside.

• Planned milestones include JY54 Phase I, JY54-2 clinical trial initiation, JY57 and JY43-2 IND applications, and JY23 marketing approval.

• Plans target deeper penetration of secondary, tertiary and county-level markets, expanded Southeast Asian exports, and gradual entry into Europe and the U.S.