Shandong Boan Biotechnology Co., Ltd. (Boan Biotech) released its interim report for the six months ended 30 June 2026, detailing a sharp revenue contraction and a swing into loss driven by strategic increases in research spending and softer domestic sales.

Revenue fell 40.8% year on year to RMB233.00 million, primarily reflecting anticipation of government-led volume-based procurement in mainland China. Cost of sales declined at a slower pace, lifting the cost-of-sales ratio to 37.3% from 28.2%. Gross profit consequently shrank 48.3% to RMB146.00 million.

The bottom line reversed from a RMB20.51 million profit in the prior-year period to an RMB83.00 million loss. The deterioration was mainly due to a 57.0% surge in recognised R&D expenses to RMB92.00 million, supporting progress across multiple biologics and innovative drug programmes. Selling and distribution expenses fell 33.0% to RMB107.10 million, while administrative costs dropped 33.2% to RMB15.46 million, partially offsetting the heavier R&D burden.

Boan Biotech closed the half-year with cash and cash equivalents of RMB1.11 billion and net current assets of RMB817.68 million. Interest-bearing borrowings increased to RMB843.55 million, pushing the gearing ratio up to 31.7% from 28.6% at end-2025. No interim dividend was declared.

Operationally, five commercial products generated sales across oncology, metabolic and ophthalmology segments, with market reach extending to more than 3,210 hospitals in China. During the period, Boluojia (120 mg denosumab) gained new indications for skeletal-related events, Boyoubei (60 mg denosumab) secured approval in Bolivia, and Boyouping (dulaglutide) obtained clearance in Macau SAR.

The company advanced its pipeline of innovative biologics and biosimilars. Highlights include FDA acceptance of Biologics License Applications for BA6101 and BA1102 (denosumab biosimilars), IND clearance for BA1203 (masked PD-1/IL-2 fusion protein), and presentation of encouraging Phase 1 data for CLDN18.2 ADC BA1301 at ASCO 2026. Manufacturing capacity at the Yantai site reached 13,500 L for commercial drug substance, with an additional 8,000 L line under construction.

Management signalled a three-phase growth strategy: maintain domestic biosimilar cash flows, accelerate overseas launches—starting with denosumab biosimilars in the UK later in 2026—and prioritise global development of lead innovative assets including BA1203, BA1302 (CD228 ADC) and BA2201 (TL1A/IL-23 bispecific antibody).