Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. (Fudan-Zhangjiang) released unaudited results for the three months ended 31 March 2026.

Revenue and Profitability • Revenue slipped 17.15% year-on-year to RMB 149.05 million, reflecting softer product sales. • Total profit surged 195.79% to RMB 7.64 million, driven mainly by RMB 7.29 million in government grants and RMB 3.63 million in gains from bank-structured deposits and wealth-management products. • Net profit attributable to shareholders rose 189.36% to RMB 7.71 million, translating into basic and diluted EPS of RMB 0.01. • Excluding non-recurring items, the company recorded a net loss of RMB 3.20 million versus a loss of RMB 3.30 million a year earlier.

Cost Structure and R&D • Total costs eased 23.4% to RMB 150.95 million, in line with lower revenue and reduced R&D outlays. • R&D investment fell 36.94% to RMB 53.01 million, representing 35.57% of revenue (down 11.16 percentage points year-on-year). • Selling expenses decreased 13.7% to RMB 72.93 million, while G&A expenses declined 9.9% to RMB 10.32 million.

Cash Flow and Balance Sheet • Operating cash flow reversed to an outflow of RMB 6.66 million from an inflow of RMB 6.88 million in Q1 2025, mainly due to lower cash receipts from customers. • Cash and cash equivalents stood at RMB 1.13 billion at period-end, down RMB 12.20 million quarter-on-quarter. • Total assets edged down 1.86% to RMB 2.35 billion; the equity attributable to shareholders rose 0.35% to RMB 2.12 billion, supported by retained earnings. • The group remains debt-light with total liabilities of RMB 222.16 million, equating to a 9.5% debt-to-asset ratio.

Shareholder Structure As of 31 March 2026, Fudan-Zhangjiang had 21,086 shareholders. The largest shareholders were HKSCC Nominees (24.58% stake) and Shanghai Pharmaceuticals Holding (20.27%). No material changes in share pledges or refinancing activities were reported.

Key Takeaways 1. Profit rebound was largely subsidy-driven rather than operational, as core earnings remain negative after excluding non-recurring items. 2. The sharp reduction in R&D spend contributed to lower costs but may influence future pipeline progress. 3. Deterioration in operating cash flow warrants monitoring despite the company’s sizeable cash reserves.

The board approved the release of these unaudited figures on 29 April 2026; the audit committee has yet to review them.