Zhaoke Ophthalmology (6622) H1 2026 earnings summary

Executive summary

• H1 revenue increased to RMB18.8m from RMB15.8m YoY; reported loss widened to RMB122.6m from RMB116.6m, while adjusted loss was RMB116.1m versus RMB115.3m.

• Cyclosporine Ophthalmic Gel, Atropine Sulfate Eye Drops and bevacizumab intravitreal injection (TAB014) remained under China regulatory review; launch preparations continued.

• Cash, cash equivalents and time deposits over three months totaled RMB715.8m at June 30, 2026, excluding pledged balances.

Financial highlights

• Revenue was RMB18.8m versus RMB15.8m YoY; gross profit was RMB9.7m versus RMB8.5m, and drug and product sales were RMB17.6m versus RMB15.1m.

• Net loss was RMB122.6m versus RMB116.6m; adjusted loss excluding equity-settled share-based payment expenses was RMB116.1m versus RMB115.3m.

• Other income fell to RMB14.7m from RMB26.3m, mainly due to lower bank interest income; other net gain rose to RMB21.7m from RMB20.0m, mainly from FX gains.

• R&D expense decreased to RMB105.8m from RMB113.1m; G&A rose to RMB33.2m from RMB30.6m, and selling and distribution expense to RMB24.8m from RMB23.4m.

• Operating cash use was RMB88.8m versus RMB149.0m; period-end cash and equivalents were RMB497.6m versus RMB959.3m at 2025 year-end.

Outlook and guidance

• Potential China approvals for the three lead drugs remained targeted during 2026; launch preparations include nationwide distribution, hospital coverage, digital channels and in-house manufacturing.

• Target is 12 commercialized drugs by end-2026, supported by nationwide sales, digital channels and in-house manufacturing.

• Overseas revenue is expected to begin in H2 2027, subject to marketing authorizations and commercialization progress; partnered YUVEZZI markets are also expected to contribute from H2 2027, subject to approvals.

• Cyclosporine gel’s GCC application remained under review, Australian generic registrations were at an advanced stage, and the first CDMO product application was planned for U.S. FDA submission in 2026.