Pacific Shuanglin Bio pharmacy Co Ltd

Pailin Bio released its 2026 interim report. First-half net profit attributable to the parent was 84.3 million yuan, down 64.2% year on year. Operating revenue was 830 million yuan, down 15.9% year on year. Net profit attributable to the parent after deducting non-recurring items was 64.81 million yuan, down 69.8% year on year. Net operating cash flow was negative 83.87 million yuan, up 56.5% year on year. Second-quarter net profit attributable to the parent was 61.33 million yuan, down 58.2% year on year. The company said the blood products industry has been affected by policies such as expanded centralized procurement and medical insurance cost control, leading to fewer clinical prescriptions and a year-on-year decline in gross margin for the blood products business. However, plasma collection volume reached 845 tonnes, up 9.4% year on year, and the company expects second-half performance to show a low-then-high trend.

Pailin Bio disclosed its 2026 interim report. In the first half, it achieved operating revenue of 830 million yuan, down 15.88% year on year. Net profit attributable to shareholders of the listed company was 84.301 million yuan, down 64.25% year on year. Basic earnings per share were 0.09 yuan. The company also plans to distribute a cash dividend of 1.5 yuan per 10 shares, tax included. The company said the blood products industry has been affected by factors such as the expansion of centralized procurement, DRG and DIP reforms, medical insurance cost control, and key monitoring of rational drug use. Clinical prescription volumes have declined, and demand-side prosperity in the market has weakened, causing the gross margin of the blood products business to fall year on year. In addition, starting from January 1, 2026, blood products are no longer included in the 3 percent simplified VAT levy scope and are instead subject to the 13 percent general taxation method, which further lowered the reporting period's gross margin. The company expects product supply in the second half of 2026 to be more ample than in the first half, and the short-term impact of the VAT collection method change to diminish. Full-year performance is expected to show a trend of being lower in the first half and higher in the second half.

Weiguang Biological's net profit attributable to shareholders in the first half of 2026 fell 58.77 percent year on year to 44.39 million yuan, while the company is simultaneously advancing a 1.5 billion yuan private placement to expand production, triggering market concerns about absorbing the new capacity. The semi-annual report shows the company achieved operating revenue of 449 million yuan, down 13.33 percent year on year; non-GAAP net profit was 43.35 million yuan, down 59.22 percent year on year; and net cash flow from operating activities turned from positive to negative at minus 115 million yuan, plunging 389.76 percent year on year. The company explained that the performance fluctuation was mainly affected by multiple factors including industry cyclical fluctuations, intensifying market competition, and value-added tax rate adjustments. Starting from January 1, 2026, the 3 percent simplified tax policy for ordinary biological products was officially abolished, and the general tax method at a uniform 13 percent rate was implemented, directly pushing up the actual tax burden on enterprises. Industry leader Tiantan Biological expects its first-half net profit attributable to shareholders to fall by about 51.75 percent year on year, and Pailin Biological forecasts a net profit decline of 53.35 percent to 66.07 percent year on year, with both citing the tax policy adjustment as one of the main reasons for the decline in performance. At the same time, Weiguang Biological's inventory balance rose from 883 million yuan at the beginning of the period to 1.01 billion yuan at the end of the period, accounting for 28.05 percent of total assets, and finished goods increased by 118 million yuan from the same period last year to 442 million yuan. Against the backdrop of high inventory, the company's 1.5 billion yuan private placement project received registration approval from the China Securities Regulatory Commission on May 18, 2026, of which 1.2 billion yuan will be invested in an intelligent industrial base project that will form an annual plasma processing capacity of 1,200 tons after completion. Industry insiders pointed out that the blood products industry has bid farewell to its dividend period, and companies need to shift from scale orientation to value orientation, proactively reduce inventory, control shipments, and improve comprehensive plasma utilization in order to weather the cycle.

Pailin Bio has issued its 2026 half-year performance forecast, expecting attributable net profit of 80 million to 110 million yuan, a year-on-year decline of 53.35% to 66.07%. The company said the profit drop was mainly due to the blood products industry being affected by factors such as the expansion of centralized procurement, DRG/DIP reforms, medical insurance cost controls, and key drug monitoring, leading to reduced clinical prescriptions and a downturn in market demand, which caused the gross margin of the blood products business to fall year-on-year. In addition, a change in the value-added tax collection model, with blood products no longer eligible for the 3% simplified levy and switching to the 13% general taxation model from January 1, 2026, further dragged down the gross margin.