Shandong Sito Bio-technology Co Ltd

Shandong Saituo Biotechnology Co., Ltd. announced that criminal proceedings have advanced in the case of a former employee, Qi, suspected of stealing trade secrets. Qi was detained by the Dingtao branch of the Heze Municipal Public Security Bureau on August 18, 2026, and was approved for arrest by the procuratorate on August 31. Qi previously served as a workshop director at the company. After leaving, he joined a company in Shenyang as its main person in charge and is suspected of using the stolen technology in that company's production. The company has already filed a civil lawsuit with the Shandong Provincial High People's Court against Shenyang Botai Biopharmaceutical Co., Ltd. and related individuals, seeking damages of 320 million yuan. The criminal case and the civil lawsuit stem from the same chain of infringement. The company stated that the case is still under investigation, so it cannot yet assess the impact on its profits and losses, but it does not expect a material adverse effect on normal production and operations.

SaiTuo Bio disclosed its 2026 semi-annual report on August 29. In the first half of the year, it achieved total operating revenue of 613 million yuan, up 20.67 percent year on year, and net profit attributable to the parent company of 30.23 million yuan, turning from a loss to a profit compared with the same period last year. Non-recurring net profit was 29.28 million yuan, also turning profitable. Net cash flow from operating activities was 121 million yuan, up 92.61 percent year on year. Basic earnings per share were 0.16 yuan, and the weighted average return on equity was 1.70 percent, up 4.61 percentage points year on year. The company's main business is manufacturing and selling steroid drug raw materials and intermediates using genetic engineering technology and microbial transformation technology.

Shandong SaiTuo Bio-Tech's controlled subsidiary Shandong Sirui Pharmaceutical recently received the Chemical API Marketing Application Approval Notification for fluticasone furoate from the National Medical Products Administration. Fluticasone furoate is a potent glucocorticoid used in nasal sprays to treat seasonal and perennial allergic rhinitis in patients aged two years and older, and in dry powder inhalers for asthma and chronic obstructive pulmonary disease. The company stated that this approval will further enrich its product pipeline and enhance its market competitiveness in the chemical API sector. However, there are currently no sales of this API, and the timing of production and sales is uncertain due to factors such as the progress of GMP compliance inspections and changes in the market environment. According to IQVIA data, global demand for fluticasone furoate API in 2024 was approximately 500 kilograms.

Two active pharmaceutical ingredient production lines of SaiTuo Bio's controlled subsidiary, Shandong Sirui Pharmaceutical Co., Ltd., have passed the drug GMP compliance inspection. The triamcinolone acetonide API production line met the requirements during the inspection from March 25 to 27, 2026, and the betamethasone API production line also met the requirements during the inspection from May 13 to 15, 2026. Passing this inspection indicates that the relevant workshops and production lines comply with good manufacturing practices for drugs, helping the company maintain stable product quality and production capacity to meet market demand. In the first quarter of 2026, SaiTuo Bio achieved revenue of 328 million yuan and a net profit attributable to the parent company of 3.62 million yuan.