Beijing Luzhu Biotechnology Co., Ltd. (Luzhu Biotech, 02480) reported a reduced interim loss for the six months ended 30 June 2026, driven by lower research-and-development (R&D) expenditure and higher other income, although the company remains in a pre-revenue stage.

Financial highlights • Net loss shrank to RMB 61.62 million, down 20.6% from RMB 77.57 million a year earlier. • R&D expenses dropped 39.7% to RMB 30.33 million as most pipeline projects stayed in pre-clinical phases. • Administrative costs rose 9.6% to RMB 28.29 million, reflecting staff expansion. • Other income climbed 39.4% to RMB 6.76 million, bolstered by government grants and rental income. • Finance costs increased 73.8% to RMB 4.74 million following higher bank borrowings. • Basic and diluted loss per share improved to RMB 0.31 from RMB 0.39.

Balance sheet and liquidity • Total assets stood at RMB 995.98 million, with cash and cash equivalents of RMB 126.70 million and term deposits of RMB 1.02 million. • Financial assets at fair value through profit or loss fell to RMB 240.89 million from RMB 323.52 million. • Bank borrowings increased to RMB 299.78 million; gearing ratio rose to 39.9% (31 Dec 2025: 36.5%). • Net cash outflow from operations was RMB 45.61 million, offset by cash inflow from investing and financing, leaving period-end cash up RMB 88.01 million.

Pipeline progress • Core Product LZ901 (recombinant herpes zoster vaccine) completed a 26,000-subject Phase III trial in China with 91.6% overall efficacy and 95.9% efficacy against post-herpetic neuralgia. A Biologics License Application filed in January 2025 remains under National Medical Products Administration (NMPA) review; commercialization is targeted for 1H 2027. • A head-to-head trial showed LZ901 delivered stronger cellular immunity and a better safety profile versus Shingrix. • U.S. Phase I study finished in September 2025, confirming safety and immunogenicity. • K193 (CD19×CD3 bispecific antibody) continues Phase I trials for B-cell malignancies, with completion expected in 2027. • Six additional programs—including recombinant RSV, HSV-1/2 and varicella vaccines, plus two bispecific antibodies—remain pre-clinical; an IND for the RSV vaccine was accepted in July 2026.

Capital deployment • IPO net proceeds totalled HK$241.60 million; HK$103.10 million remains unspent, earmarked mainly for LZ901 trials, RSV vaccine development and working capital. • No interim dividend was declared.

Outlook and strategy Management will focus on securing LZ901 approval and building commercial infrastructure, advancing early-stage assets, and pursuing partnerships to broaden the pipeline while maintaining prudent cost control.