GenScript Biotech (01548, “GenScript”) reported strong operational growth for the six months ended 30 June 2026, but a substantial equity accounting charge linked to associate Legend Biotech led to a headline net loss.
Financial Highlights (Underlying Basis) • Revenue rose 27.3% year on year to US$404.22 million. • Gross profit climbed 48.0% to US$206.71 million; gross margin improved to 51.2% (H1 2025: 44.0%). • Adjusted net profit surged 203.3% to US$62.52 million. • Core business (excluding Legend) delivered net profit of US$25.56 million, up 116.7%. • Reported loss after tax totalled US$129.34 million, mainly due to a US$154.96 million non-cash equity accounting impact from Legend (share of loss: US$9.95 million; fair-value and dilution effects: US$145.01 million).
Segment Performance 1. GenScript Life Science Group – Revenue: US$318.98 million, +28.8%. – Adjusted gross profit: US$184.51 million, +46.1%; margin widened to 57.8%. – Adjusted operating profit doubled to US$94.02 million, driven by demand for gene-to-protein solutions, efficiency gains from automation and digital manufacturing, and stronger engagement with pharmaceutical and AI-driven drug-discovery customers.
2. ProBio (CRDMO) – Revenue: US$61.11 million, +34.2%. – Adjusted gross profit: US$8.32 million; margin rose to 13.6% (H1 2025: 1.5%). – Adjusted operating loss narrowed to US$24.26 million on higher capacity utilisation and recovering industry demand.
3. Bestzyme (Industrial Synthetic Biology) – Revenue: US$30.39 million, +7.4%. – Adjusted gross profit: US$13.03 million; margin improved to 42.9% (H1 2025: 40.4%). – Adjusted operating loss widened to US$1.29 million owing to increased R&D spending and expansion into new synbio products.
Cost Structure and Expenses • Selling & distribution expenses grew 13.7% to US$54.01 million, reflecting continued investment in global commercial capabilities. • Administrative expenses remained stable at US$63.09 million. • R&D expenditure increased 25.9% to US$39.44 million, supporting process optimisation and technology expansion.
Balance Sheet and Liquidity • Cash and cash equivalents, time deposits and wealth-management products totalled US$810.20 million as at 30 June 2026 (31 Dec 2025: US$812.00 million). • Current ratio stood at 1.5; gearing ratio at 18.7%. • Capital expenditure reached US$47.70 million, mainly for manufacturing expansion and facility upgrades.
Capital and Other Developments • Fair-value loss of US$7.21 million recognised on ProBio Series C preferred shares. • No interim dividend declared. • No material acquisitions or disposals during the period; no significant post-balance-sheet events reported.
Strategic Outlook GenScript plans to deepen integration of its gene-to-protein platform, scale manufacturing in the U.S. and China, and invest in automation and AI-enabled workflows. ProBio will add GMP lentiviral vector capacity in New Jersey and expand biologics production in Zhenjiang, while Bestzyme targets capacity upgrades and new synbio products such as sweet proteins.