Beijing Tiantan Biological Products Corp Ltd

Tiantan Biological released its 2026 semi-annual report on the evening of August 28, reporting first-half attributable net profit of about 299 million yuan, down 52.75% year on year. In the same period, the company achieved operating revenue of about 2.595 billion yuan, down 16.56% year on year. Tiantan Biological is mainly engaged in the research, development, production and sales of blood products. The company said the change in operating revenue was mainly due to lower sales prices.

Tiantan Biological released its 2026 interim report, showing first-half net profit attributable to the parent of 299 million yuan, down 52.7% year on year. Operating revenue was 2.595 billion yuan, down 16.6% year on year. Net profit attributable to the parent after deducting non-recurring items was 285 million yuan, down 53.9% year on year. Net operating cash flow was 289 million yuan, and earnings per share were 0.15 yuan. In the second quarter, operating revenue was 1.45 billion yuan, down 18.9% year on year, and net profit attributable to the parent was 173 million yuan, down 55.4% year on year. As of the end of the second quarter, total assets were 17.045 billion yuan, up 2.8% from the end of the previous year, and net assets attributable to the parent were 11.94 billion yuan, up 1.7% from the end of the previous year. The company said in the interim report that the blood products industry faces multiple constraints on clinical demand and will undergo a period of phased adjustment in the short term, but the industry's strategic importance, raw material scarcity, and resource attributes remain, and blood products maintain rigid demand in specific therapeutic areas. The company is actively promoting comprehensive plasma utilization and developing new products, and expanding markets through international cooperation to respond to market changes.

Tiantan Biological released its 2026 half-year report on the evening of August 28. Operating revenue was 2.595 billion yuan, down 16.6% year-on-year; net profit attributable to the parent was 299 million yuan, down 52.7%; and non-GAAP net profit attributable to the parent was 285 million yuan, down 53.9%. The company explained that since the second half of 2024, due to medical insurance cost control, reform of medical insurance payment methods and other factors, competition in the blood products industry has intensified and product sales prices have declined. Combined with the adjustment of value-added tax policy for biological products effective from January 1, 2026, performance has fallen. By product, the gross margins of human serum albumin, intravenous human immunoglobulin including chromatography, and other blood products fell by 11.92%, 8.15% and 9.93% respectively. By region, the domestic gross margin decreased by 9.46%, while the overseas gross margin increased by 9.45%, but domestic revenue accounted for the main portion and fell 16.56% year-on-year. The 2025 annual report showed full-year revenue of 6.168 billion yuan, up 2.26% year-on-year, and net profit attributable to the parent of 1.091 billion yuan, down 29.59%, the only year of profit decline in the past five years. As of the close on August 18, the company's share price had fallen more than 24% during the year.

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.

Tiantan Biological Products issued an announcement, expecting net profit attributable to the parent for the first half of 2026 to be 305 million yuan, a year-on-year decline of about 51.75 percent. It expects net profit attributable to the parent after deducting non-recurring items to be 291 million yuan, a year-on-year decrease of about 52.89 percent. The company said the expected decline in performance is mainly due to factors such as medical insurance cost control and payment method reforms since the second half of 2024, which have intensified competition in the blood products industry and led to a downward trend in product sales prices. At the same time, the adjustment of value-added tax policies for biological products implemented from January 1, 2026, also had a negative impact on operating performance in the first half of the year. In the first quarter of 2026, Tiantan Biological Products achieved revenue of 1.142 billion yuan and net profit attributable to the parent of 126 million yuan.