Zhejiang Orient Gene Biotech Co Ltd

First-half 2026 reports from in vitro diagnostics companies listed on the STAR Market show sharp divergence, with Autobio Diagnostics, Biotest Biotech and Orient Gene posting lower net profit while Rendu Biotechnology saw a surge. Autobio Diagnostics' first-half revenue and net profit fell 8.77% and 61.48% respectively, to 392 million yuan and 51 million yuan. Second-quarter revenue and net profit dropped 11.11% and 55.58% year on year, which the company attributed to intensifying industry competition, foreign exchange losses and higher research and development expenses. Orient Gene and Biotest Biotech grew revenue but not profit. Orient Gene's net loss widened to 222 million yuan, down 36.26% year on year, while Biotest Biotech swung from profit to a loss of 16.55 million yuan, plunging 233.46% year on year. Both cited US dollar exchange losses. Rendu Biotechnology's revenue edged down 2.22% to 79.44 million yuan, but net profit attributable to the parent surged 369.86% year on year to 9.58 million yuan, and non-recurring net profit turned positive, mainly thanks to cost reduction and efficiency gains. Selling, administrative and research and development expenses fell 11.86%, 10.10% and 21.98% respectively. In addition, companies such as YHLO Biotech, HOB Biotech and Dian Diagnostics also achieved net profit growth, with Dian Diagnostics' net profit soaring 2,160% to 232 million yuan. However, for some companies the improvement in profit was driven mainly by cost reduction and efficiency gains and a narrowing of credit impairment losses. The industry remains in a deep adjustment cycle, with centralised procurement, medical insurance cost controls and exchange rate fluctuations continuing to affect corporate performance.

Orient Bio released its 2026 interim report. First-half operating revenue was 464 million yuan, up 15.2% year on year, but net loss attributable to the parent widened to 222 million yuan, compared with a loss of 163 million yuan in the same period last year. Net loss attributable to the parent after deducting non-recurring items was 238 million yuan, versus a loss of 184 million yuan a year earlier. Net operating cash flow was negative 43.17 million yuan, an improvement of 65% year on year. Second-quarter revenue was 208 million yuan, down 1.5% year on year, and net loss attributable to the parent was 128 million yuan, compared with a loss of 47.65 million yuan a year earlier. As of the end of the second quarter, total assets stood at 6.893 billion yuan, down 3.4% from the end of the previous year, and net assets attributable to the parent were 5.755 billion yuan, down 4%. The company said its main business was driven by routine human medical testing, with overseas sales growth in infectious disease testing reagents boosting overall business growth, while the animal health business is still in the promotion stage.

Orient Biotech disclosed its 2026 semi-annual report on the evening of August 28. In the first half of the year, it achieved operating revenue of 464 million yuan, up 15.15 percent year on year, but net profit attributable to shareholders of the listed company was negative 222 million yuan, with the loss widening 36.26 percent year on year. The company said the revenue growth mainly came from large-scale sales of infectious disease testing reagents in overseas markets, and the routine testing business showed a stabilizing and recovering trend. Profit pressure mainly stemmed from US dollar exchange losses and the continued release of strategic investment costs. Net cash flow from operating activities was negative 43.1661 million yuan, narrowing sharply by 64.98 percent compared with the same period last year. The company's R&D investment accounted for 17.27 percent of revenue, with 177 new product certifications and 26 authorized patents added, and it is advancing global production capacity layout in the United States, the United Kingdom, Canada and other places. The company is transforming from a single human medical testing business to a dual-track model of human medicine plus animal health, but it cautioned that overall operating results for 2026 may still face loss risks, and the contract dispute involving US Hengjian is still under trial.