Key takeaway

The company released its 2025 annual report and 1Q26 report. In 2025, revenue from the blood products business remained stable, while the profit side faced pressure due to price adjustments. The 1Q26 performance was mainly affected by blood product price adjustments and the change in the valueadded tax rate. In 2025, the company’s plasma collection volume maintained steady growth, with a growth rate exceeding the industry average. Together with continued strengthening of sales promotion, the adverse impact is expected to be partially offset in 2026. The company continues to advance new product R&D. A new intravenous human immunoglobulin is currently under marketing review, and the development of other new products is progressing in an orderly manner. The company is actively expanding into cutting edge biopharmaceutical fields, strengthening the operation of the Life Science Park, and leading the establishment of a CGT industry public service platform. Further progress is expected.

Event

The company released its 2025 annual report, with performance meeting expectations

On April 27, the company released its 2025 annual report, achieving: 1) operating revenue of RMB1.267bn, up 5.28% YoY; 2) net profit attributable to shareholders of the parent company of RMB246mn, down 2.84% YoY; 3) net profit attributable to shareholders of the parent company after excluding non recurring items of RMB239mn, down 9.44% YoY; 4) basic EPS of RMB1.09. Results were in line with expectations. Profit distribution plan: A cash dividend of RMB2 (tax included) for every 10 shares to all shareholders, totaling RMB45mn in cash dividends.

The company releases 1Q26 report: Performance below expectations

On April 27, the company released its 2026 first quarter report, achieving: 1) operating revenue of RMB222mn, down 1.39% YoY; 2) net profit attributable of RMB0.14. The performance was below previous expectations. to shareholders of the parent company of RMB31mn, down 29.21% YoY; 3) net profit attributable to shareholders of the parent company after excluding non recurring items of RMB31mn, down 28.10% YoY; 4) basic EPS of RMB0.14. The performance was below previous expectations.

Risks

1. Risk of insufficient raw plasma supply. The raw material for blood products is plasma from healthy individuals, which has a special source and is scarce. As laws, regulations, and policies on the establishment of new plasma collection stations tighten, there is significant uncertainty regarding the establishment of new stations, and the company may face the risk of insufficient raw plasma supply.

2. Risk related to new product R&D. Drug development has a long cycle, and the R&D process is affected by multiple factors such as existing technology levels, product design, clinical outcomes, budget investment, national policies, market demand, and approvals from relevant authorities, which may lead to risks such as slower-than-expected R&D progress or R&D failure.

3. Potential product safety risk. During plasma collection and production, the company strictly follows relevant national regulations and adopts comprehensive and stringent measures such as screening for relevant pathogens and removing and inactivating viruses, but theoretically the products may still carry potential risks from certain unknown pathogens.

4. Risk of product sales falling short of expectations: Currently, the blood products industry is affected by multiple factors such as intensified market competition and the implementation of centralized procurement policies. Product prices and sales face certain pressure. If the company's product sales fall short of expectations and prices continue to face pressure, subsequent performance may fall short of expectations.