Boan Biotech released unaudited results for the six months ended 30 June 2026, reporting a sharp swing to a net loss of RMB 83.00 million compared with a profit of RMB 20.51 million a year earlier.
Revenue declined 40.8% year-on-year to RMB 233.00 million, mainly reflecting expectations of forthcoming government-led volume-based procurement that weighed on domestic product sales. Cost of sales fell 21.5% to RMB 87.00 million, but the gross margin narrowed to 62.7% from 71.8%, leaving gross profit at RMB 146.00 million, down 48.3%.
Operating expenses showed a mixed picture. Selling and distribution costs dropped 33.0% to RMB 107.11 million and administrative expenses contracted 33.3% to RMB 15.46 million, thanks to tighter cost controls. In contrast, research and development spending rose 57.0% to RMB 92.01 million as the company accelerated its innovation pipeline, pushing total operating costs higher and contributing to the interim loss.
Finance costs increased 11.3% to RMB 21.69 million, in line with higher borrowings. Interest-bearing bank and other loans grew to RMB 843.59 million, lifting the gearing ratio to 31.7% from 28.6% at end-2025.
Liquidity remained solid with cash and cash equivalents of RMB 1.11 billion, only 2.2% lower than at 31 December 2025. Net current assets stood at RMB 817.68 million, giving a current ratio of 1.74.
Operationally, the company secured new approvals for key biosimilars and advanced several innovative candidates. Notable milestones included: • Approval of 60 mg denosumab (Boyoubei) in Bolivia and dulaglutide (Boyouping) in Macau. • NMPA clearance for additional indications of 120 mg denosumab (Boluojia) to treat skeletal-related events. • FDA acceptance of U.S. BLAs for two denosumab biosimilars and Brazilian filing for aflibercept. • Progression of pipeline assets BA1106, BA1301, BA1302, BA1203 and BA2201 into later-stage trials or IND acceptance.
No interim dividend was declared. Management reiterated its strategy to leverage cash-generating biosimilars, pursue overseas launches and invest in next-generation biologics while monitoring policy headwinds in China.