Zhejiang Zhenyuan Share Co Ltd

Zhejiang Zhenyuan released its 2026 interim report, with net profit attributable to the parent company at negative 13.3979 million yuan, swinging from profit to loss year-on-year. The company's total operating revenue was 872 million yuan, down 32.06 percent from the same period last year. Net cash inflow from operating activities was 79.9282 million yuan, up 1163.18 percent year-on-year. The company's latest asset-liability ratio was 32.61 percent, gross margin was 22.84 percent, return on equity was negative 0.69 percent, and diluted earnings per share was negative 0.04 yuan.

Zhejiang Zhenyuan disclosed an earnings forecast, projecting a net loss attributable to the parent of 11 million to 16 million yuan in the first half of 2026, compared with a profit of 56.2637 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 18 million to 23 million yuan, versus a profit of 30.1173 million yuan a year earlier. Basic earnings per share are estimated at negative 0.03 yuan to negative 0.05 yuan. The company attributed the performance change mainly to increased production and operating costs due to the high investment intensity of the Zhenyuan Biotechnology project, a decline in sales revenue and gross margin in traditional segments affected by pharmaceutical centralized procurement and intensifying industry competition, back taxes and late payment surcharges from a tax self-inspection, and higher financial expenses resulting from continued investment in project construction.