Shandong Sinobioway Biomedicine Co Ltd

The core subsidiary of *ST Weiming, Tianjin Weiming, has suspended production for more than 15 months, far exceeding the previously promised three-month resumption deadline. This has widened the company's main business losses and heightened delisting risks. The company expects a first-half 2026 loss of 90 million to 120 million yuan, with the loss expanding by 33.72% to 78.30% year-on-year, while its core net profit also recorded a substantial loss. Tianjin Weiming's key product is interferon, which generated revenue of 217 million yuan in 2024, accounting for 60.09% of the company's total revenue. Since April 2025, it has been ordered to halt production for failing to comply with Good Manufacturing Practice standards and has yet to resume operations. The company previously used the gross method to recognize revenue from its intermediary trading of Chinese herbal medicine pieces to avoid a delisting risk warning. After correcting an accounting error, it reduced revenue by 79.021 million yuan, causing its 2025 revenue after deduction to fall to 272 million yuan. Combined with dual losses, this led to a delisting risk warning being imposed in April 2026. For this information disclosure violation, the Shandong Securities Regulatory Bureau issued a warning letter, and the Shenzhen Stock Exchange concurrently issued a public reprimand to the company and its then-serving senior executives. Although the company holds a 26.91% stake in Beijing Kexing and receives annual dividends of approximately 135 million yuan, this income is classified as non-recurring and cannot offset the main business losses. If the 2026 annual report again shows dual losses in net profit and core net profit, with revenue below 300 million yuan, the company will be delisted.

ST Weiming disclosed its earnings forecast, expecting a net loss attributable to the parent company of 90 million to 120 million yuan in the first half of 2026, compared with a loss of 67.3027 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 89 million to 119 million yuan, compared with a loss of 67.1924 million yuan a year earlier. Basic earnings per share are projected to be between negative 0.1364 yuan and negative 0.1819 yuan. The company stated that the loss is mainly due to the suspension of production and sales at its subsidiary Tianjin Weiming and the impact of pharmaceutical industry policies.