Shanghai Bao Pharmaceuticals (2659) H1 2026 earnings summary

Executive summary

• H1 2026 revenue fell 76.5% YoY to RMB9.875m, primarily because RMB40.002m of one-off licensing income did not recur; net loss narrowed to RMB153.685m from RMB183.096m.

• KJ017 received NMPA marketing approval, KJ103’s kidney-transplant desensitization NDA was accepted under priority review, and SJ02 commercialization began in Greater China.

Financial highlights

• Revenue was RMB9.875m vs RMB41.990m; technical services revenue rose to RMB8.705m from RMB1.005m, while sales of materials were RMB1.170m vs RMB0.983m.

• Gross profit was RMB9.338m vs RMB41.725m; basic and diluted loss per share improved to RMB0.47 from RMB0.64.

• R&D expense fell 16.6% YoY to RMB92.6m and administrative expense fell 12.0% to RMB40.6m; lower share-based payments partly offset higher clinical and testing costs.

• Other income and gains rose 107.7% to RMB12.3m, mainly on higher bank interest income and government grants; other expenses fell 36.2% to RMB35.3m as no new litigation loss provision was recorded.

Outlook and guidance

• KJ017 commercial sales are targeted to begin in H2 2026; KJ103 kidney-transplant desensitization NDA approval and potential commercialization are expected in 2027, subject to regulatory approval.

• H2 2026 priorities include KJ103 anti-GBM Phase III initiation, GBS Phase II enrollment, KJ015 Phase I completion and BJ007 pivotal-trial entry in China and overseas.

• SJ02 commercialization with ANKE BIO is underway; core products are expected to grow sales over the next two to five years, subject to regulatory, market and other factors.

• A new Shanghai manufacturing site of ~37,000 sq.m. is expected to be operational in 2026; remaining global-offering proceeds are expected to be fully used by Dec. 31, 2028.