Porton Fine Chemicals Ltd

Leading CRO WuXi AppTec saw its A-shares hit the daily limit on August 4, closing at 141.35 yuan, with total market value rising by approximately 38.3 billion yuan from the previous day to 421.754 billion yuan, a new high since August 2021. Its Hong Kong shares also gained 11.17 percent. The company's earlier semi-annual report showed first-half 2026 revenue of 28.9 billion yuan, up 38.9 percent year-on-year, and net profit attributable to the parent of 11.08 billion yuan, up 29.43 percent year-on-year, marking the first time half-year net profit exceeded 10 billion yuan. It also raised its full-year revenue guidance to 58.5 to 60.5 billion yuan. On the day, the A-share CRO index surged 7.94 percent, with Asymchem and Porton Pharma Solutions among multiple stocks hitting the daily limit or rising over 10 percent, while Hong Kong-listed pharmaceutical outsourcing concept stocks also rallied. WuXi AppTec's chemistry business revenue reached 24.986 billion yuan in the first half, up 53.28 percent year-on-year, with TIDES business revenue at 7.26 billion yuan, up 44.3 percent. However, global capacity expansion in the GLP-1 space is intensifying competition, with Novo Nordisk, Eli Lilly, and domestic player Asymchem all expanding capacity.

Porton Pharma's majority-owned subsidiary Suzhou Porton Biopharmaceuticals has obtained a Drug Manufacturing License issued by the Jiangsu Medical Products Administration for the first time. The license signifies that Suzhou Porton now has the compliance qualifications to undertake commercial contract manufacturing of cell and gene therapy products, which will help facilitate the company's related business development. In the first quarter of 2026, Porton Pharma achieved revenue of 886 million yuan and a net profit attributable to the parent company of 27.87 million yuan.

Porton Pharma plans to use its own funds of 30 million yuan to establish a new wholly owned subsidiary, Chongqing Yaochu Biotechnology Co., Ltd., to explore the health consumer goods business. The new subsidiary has a registered capital of 30 million yuan, with a business scope including the production of food additives and formula foods for special medical purposes. The company also disclosed its performance forecast for the first half of 2026, expecting operating revenue of 1.75 to 1.82 billion yuan, a year-on-year increase of 8% to 12%, but a net loss attributable to the parent company of 210 to 250 million yuan, mainly due to an asset impairment provision of approximately 330 million yuan for terminating the construction of a research and development and production base in Slovenia. Excluding the impact of this impairment, the net profit attributable to the parent company for the first half is expected to be 80 to 120 million yuan, a year-on-year increase of 196% to 343%.

Porton Pharma Solutions disclosed its earnings forecast, expecting a net loss attributable to the parent company of 210 million to 250 million yuan in the first half of 2026, compared with a profit of 27.06 million yuan in the same period last year. The company's operating revenue for the same period is expected to be between 1.75 billion and 1.82 billion yuan, an increase of 8% to 12% year-on-year. The change in performance is mainly due to the termination of the construction of the research and development and production base project in Slovenia, resulting in a total asset impairment provision of approximately 330 million yuan. Excluding this impact, the company expects to achieve a net profit attributable to the parent company of 80 million to 120 million yuan, an increase of 196% to 343% year-on-year. The growth in net profit is attributed to the scale effect brought by the continuous growth of operating revenue, the delivery of some high-margin products, and an overall gross margin increase of about 4 percentage points year-on-year.

The General Office of the National Medical Products Administration has released a draft proposal to include eligible cell and gene therapy drugs in a 30-day review and approval pathway for innovative drug clinical trial applications. Previously, the review cycle was 60 working days, effectively doubling approval efficiency. The policy aligns with the forthcoming regulations on clinical research and translational application of new biomedical technologies, as well as the announcement issued last September on optimizing the review and approval of innovative drug clinical trials. Together, they enhance the industry ecosystem across multiple dimensions, including review efficiency, compliance pathways, and innovation orientation. The draft encourages global simultaneous development and international multi-center clinical trials, and focuses on key areas such as malignant tumors and rare diseases to guide resource concentration. Several A-share listed companies with a presence in the cell and gene therapy sector are expected to benefit, including Obio Technology, Pharmaron, and Porton Pharma Solutions. The Wind Innovative Drug Index has rebounded by more than 20 percent since mid-June.