Hangzhou-based biopharma developer Jiuyuan Gene (02566) reported stable interim earnings for the six months to 30 June 2026, booking net profit of RMB91.27 million, up 1.2% year on year, despite a 1.2% decline in revenue to RMB630.95 million.

Revenue drivers • Sales of goods fell 5.04% to RMB590.41 million, weighed down by lower average prices for the bone-repair product Guyoudao. • Pharmaceutical services more than doubled to RMB40.54 million, supported by higher commissioned-manufacturing volumes. • Key products Jiouting® and Yinuojia® secured renewed positions in national volume-based procurement, while newly launched Jixinfen® and Jilixin® maintained rapid volume growth.

Profitability and cost structure • Gross profit slipped 2.54% to RMB511.94 million; gross margin narrowed to 81.1% (H1 2025: 82.2%) due to the larger share of lower-margin commissioned manufacturing. • Selling and marketing expenses fell 8.9% to RMB314.82 million and administrative costs dropped 17.5% to RMB24.89 million following cost-control efforts. • R&D spending jumped 39.7% to RMB69.29 million as multiple innovative programs advanced. • Finance costs were largely stable at RMB2.84 million.

Balance-sheet highlights • Cash and time deposits totalled RMB631.60 million at end-June (31 Dec 2025: RMB650.94 million). • Interest-bearing bank borrowings rose to RMB132.39 million (31 Dec 2025: RMB102.60 million); gearing ratio eased to 21.7% from 22.2%. • No significant investments, acquisitions or disposals were recorded; contingent liabilities remained nil.

Operational updates • Pipeline: First-in-class amylin analogue JY54 entered Phase I, while JY57 (FGF21 agonist) and JY54-2 progressed toward IND submissions. Biosimilar Jikeqin® (semaglutide) and device JY23 (rhBMP-2 bone graft) are awaiting marketing approvals. • Internationalisation: Initial export of bone-morphogenetic protein product Guyoudao to Indonesia; exclusive semaglutide distribution deals signed across Southeast Asia; collaborations underway in Latin America and North America. • Quality & capacity: Semaglutide and biologics production lines underwent intelligent upgrades; GMP systems aligned with EU, FDA and PIC/S standards.

Capital management • During H1, the company repurchased 4.76 million H shares for HK$45.52 million; a further 0.35 million shares were bought post-period for HK$2.19 million, all held as treasury shares.

Outlook Management targets “innovation upgrading, channel penetration, and cost reduction” in H2 2026, with priorities including continued clinical progression of core assets, broader hospital coverage in lower-tier cities, and deeper penetration of emerging overseas markets. No interim dividend was declared.