RemeGen Co. Ltd. A

RemeGen disclosed its half-year results for 2026, achieving a net profit attributable to shareholders of the listed company of 4.662 billion yuan, swinging from a loss to a profit year on year. During the reporting period, the company achieved operating revenue of 5.853 billion yuan, up 433.11 percent year on year.

Rongchang Bio released its 2026 interim report, with net profit attributable to the parent turning from a loss of 450 million yuan in the same period last year to a profit of 4.66 billion yuan. The company's first-half operating revenue was 5.85 billion yuan, up 433.1 percent year-on-year; non-GAAP net profit attributable to the parent was 4.34 billion yuan, compared with a loss of 446 million yuan in the same period last year; net operating cash flow was 4.214 billion yuan, up 1,816.2 percent year-on-year. Second-quarter operating revenue was 5.2 billion yuan, up 808.6 percent year-on-year, and net profit attributable to the parent was 4.33 billion yuan. The company said sales revenue from its core products telitacicept and disitamab vedotin continued to grow, while the exclusive license agreement for RC148 signed with AbbVie brought substantial technology licensing revenue.

On August 13, China's A-share pharmaceutical sector strengthened, with Boji Medical and Longshen Rongfa up by the 20 percent daily limit, Fangsheng Pharmaceutical and Jiuzhou Pharmaceutical up by the 10 percent daily limit, and innovative drug companies such as Yahong Meditech, Junshi Biosciences, Dizal Pharmaceutical, and Zhongsheng Pharmaceutical rising more than 3 percent. Since WuXi AppTec released its better-than-expected 2026 interim report on August 3, the pharmaceutical sector has kept climbing, with Wanbang Pharmaceutical posting three boards in two days, Yatai Group three consecutive daily limits, and Yuyuan Pharmaceutical four boards in five days. Southwest Securities research argues that WuXi AppTec's interim net profit attributable to the parent exceeded 10 billion yuan for the first time and raised its guidance, while BeiGene, RemeGen, and Innovent Biologics released positive results at the same time, creating a sector-wide resonance effect. WuXi AppTec's first-half revenue was 28.9 billion yuan, up 38.93 percent year on year, with net profit attributable to the parent of 11.08 billion yuan, up 29.43 percent. BeiGene's first-half total revenue was 22.22 billion yuan, up 26.8 percent year on year, with net profit attributable to the parent of 3.271 billion yuan, up 627.1 percent, and it raised its full-year revenue guidance to between 44.9 billion and 46.2 billion yuan. Innovent Biologics' first-half product revenue exceeded 8.2 billion yuan, up more than 55 percent year on year. In addition, Akeso's ivonescimab injection combined with chemotherapy was approved for first-line treatment of advanced squamous non-small cell lung cancer, marking the drug's third indication in lung cancer. On August 10, China's pharmaceutical industry announced three deals, including a collaboration between BeiGene and Revolution Medicines, a partnership between Innovent Biologics and Daiichi Sankyo, and a collaboration between Gan & Lee Pharmaceuticals and Menarini, with a potential total transaction value of 726 million euros. On August 12, CSPC Pharmaceutical Group received a 30 million US dollar upfront payment from AstraZeneca. Xiangcai Securities research argues that this round of the pharmaceutical sector's rally will be significantly more durable than previous ones, based on three judgments: the pharmaceutical sector absorbing capital outflows from the technology sector, improving interim results from CXO companies, and the initial emergence of Chinese pharmaceutical companies' global expansion.

RemeGen has disclosed its 2026 interim results forecast, expecting first-half operating revenue of approximately 5.85 billion yuan, an increase of about 4.75205 billion yuan compared with the same period in 2025, representing year-on-year growth of roughly 433 percent. The company expects net profit attributable to owners of the parent of about 4.7 billion yuan for the first half, swinging to a profit; net profit after deducting non-recurring items is expected to be about 4.3 billion yuan, also swinging to a profit. The significant change in performance is mainly due to continued growth in domestic sales revenue of its core products telitacicept and disitamab vedotin, as well as substantial technology licensing revenue from an exclusive license agreement for RC148 signed with a holding company of AbbVie. The financial data in this forecast are only preliminary estimates and have not yet been audited by certified public accountants.

China's A-share market opened higher across the three major indices, with Baihua Pharmaceutical locking in its fifth consecutive daily limit-up. The Shanghai Composite Index opened 0.10% higher, the Shenzhen Component Index rose 0.27%, and the ChiNext Index edged up 0.11%, as over 2,700 stocks advanced. Baihua Pharmaceutical had previously announced that its stock price deviation over three consecutive trading days from August 3 to August 5 exceeded 20%, triggering abnormal trading volatility, but a self-inspection revealed no undisclosed material information and normal operations. On the news front, total out-licensing deal value for Chinese innovative drugs in the first half of 2026 reached approximately 99.7 billion US dollars, roughly double the full-year figure for 2024. BeiGene raised its full-year performance forecast, while RemeGen and Innovent Biologics reported significantly improved results. A research note from Sinolink Securities pointed out that as of July 10, 2026, external capital expenditure by the top 15 global pharmaceutical companies this year had reached 200.3 billion US dollars, approaching 73.5% of the full-year total for 2025, largely confirming a high-activity M&A cycle in the global pharmaceutical industry.

Penghua STAR 100 ETF surged over 2% in morning trading, with semiconductor and pharmaceutical sectors rallying strongly. On the news front, DeepSeek plans to raise API service pricing soon, with a significant increase expected. Goldman Sachs noted that demand for Chinese AI models is robust and computing power is tightening, with industry competition shifting from price wars back to rational pricing. In pharmaceuticals, the total out-licensing deal value for Chinese innovative drugs in the first half of 2026 reached approximately 99.7 billion US dollars, roughly double the full-year figure for 2024. BeiGene raised its full-year operating performance forecast, while RemeGen and Innovent Biologics reported substantially improved results. BOC International analysis indicates that since 2026, global semiconductor materials have seen a wave of price hikes, covering core categories such as silicon wafers, electronic specialty gases, and sputtering targets. This is driven by a combination of surging AI computing demand, rising costs from Middle East geopolitical conflicts, and supply constraints on certain metal raw materials, opening an accelerated substitution window for domestic material companies. As of 10:13 AM on August 7, 2026, the SSE STAR 100 Index rose strongly by 2.23%, with constituent ChipMOS Technologies up 12.22%, InventisBio up 8.15%, and Fortrend Precision up 6.87%. Penghua STAR 100 ETF closely tracks this index, with the latest price at 1.75 yuan, aiming for a fourth consecutive gain.

On the evening of August 5, several listed companies on the Shanghai and Shenzhen exchanges released important announcements. China Merchants Energy Shipping plans to build five Aframax oil tankers, with a total price of approximately 2.485 billion yuan. Kaiwei Technology intends to purchase 100% of Jingyi Semiconductor for 1.65 billion yuan. RemeGen is expected to report a net profit of about 4.7 billion yuan for the first half of the year, turning a loss into a profit year-on-year. BeiGene's global revenue for the second quarter reached 1.7 billion US dollars, a year-on-year increase of 30%, and it has raised its full-year revenue guidance to between 6.6 billion and 6.8 billion US dollars. Muyuan Foods' revenue from commercial pigs in July was 8.897 billion yuan, a year-on-year decrease of 23.56%. Zhaori Technology is planning to issue shares to purchase assets, and its stock will be suspended from trading starting August 6. Lida Optoelectronics will resume trading on August 7 and will have its delisting risk warning and other risk warnings removed. In addition, several companies disclosed their semi-annual performance, shareholding increase or decrease plans, and major contracts.

Rongchang Bio has released its 2026 half-year performance forecast, expecting to achieve a net profit attributable to shareholders of about 4.7 billion yuan for the first half, turning around from a loss in the same period last year. The company expects revenue for the period to be about 5.85 billion yuan, a year-on-year increase of 433 percent, mainly driven by continued growth in domestic sales revenue of its core products telitacicept and disitamab vedotin, as well as a significant increase in technology licensing revenue from an exclusive license agreement signed with AbbVie for RC148. On August 5, Rongchang Bio's closing price was 117.8 yuan per share, up 5.79 percent, with a total market value of about 66.5 billion yuan.

BeiGene has released its key financial data for the first half of 2026. Net profit attributable to parent company shareholders reached 3.271 billion yuan, a year-on-year increase of 627.1 percent. Total operating revenue was 22.22 billion yuan, up 26.8 percent. Product revenue came in at 21.797 billion yuan, a rise of 25.6 percent, driven mainly by sales growth of Brukinsa, Amgen-licensed products, and Tevimbra. The company also raised its 2026 full-year revenue forecast to between 44.9 billion and 46.2 billion yuan, up from the previous range of 43.6 billion to 45.2 billion yuan, reflecting Brukinsa's leading position in the US market and its continued expansion in Europe and other key global markets. In other news, Elegant Home-Tech has completed a trading halt review and will resume trading on August 6. The company expects a net loss for the first half of 2026 and has warned of irrational speculation risks. Midea Group had cumulatively repurchased A-shares worth 6.973 billion yuan as of July 31. China Merchants Energy Shipping plans to build five Aframax tankers for a total price of approximately 2.485 billion yuan. Kiwi Instruments intends to acquire a 100 percent stake in Jingyi Semiconductor for 1.65 billion yuan, constituting a major asset restructuring. Muyuan Foods reported July commercial pig sales revenue of 8.897 billion yuan, down 23.56 percent year-on-year. RemeGen expects a first-half 2026 net profit of around 4.7 billion yuan, swinging from a loss to a profit.

ChinaAMC Health Mix A disclosed its second-quarter 2026 report, with a quarterly profit of 15.3123 million yuan and a net asset value growth rate of 4.48%. As of the end of the second quarter, the fund size stood at 374 million yuan. Fund manager Sun Mingda stated that during the quarter, the fund continued to increase holdings in innovative drug assets and the pharmaceutical outsourcing services sector, where fundamentals are steadily recovering. The portfolio tilted moderately toward innovation, and going forward, asset allocation will continue to center on two core themes: rigid domestic demand and industrial innovation and upgrading. As of July 21, the fund's three-month cumulative NAV growth rate was 8.21%, ranking 20th out of 127 comparable funds. Its one-year growth rate was 2.28%, ranking 30th out of 127, and its three-year growth rate was 27.88%, ranking 27th out of 102. The fund's three-year Sharpe ratio was 0.3133, with a maximum drawdown of 26.62% and an average equity position of 85.01%. At the end of the second quarter, the top ten heavy-weighted holdings included Kelun Pharmaceutical, RemeGen, and Hengrui Medicine.

The STAR Market Healthcare ETF ChinaAMC rose 1.49% intraday, with its latest price at 1.02 yuan. The Shanghai STAR Market Biomedical Index it tracks also gained 1.49%. The ETF has seen net capital inflows for 16 consecutive trading days, totaling 284 million yuan, with an average daily net inflow of 17.72 million yuan. In related news, constituent stock Allist Pharmaceuticals released its 2026 half-year performance forecast, expecting net profit attributable to shareholders to grow 46.49% year-on-year to 1.54 billion yuan. RemeGen announced plans to repurchase shares at a price not exceeding 149 yuan per share, with an amount no less than 25 million yuan and no more than 50 million yuan. Century Securities believes that biomedicine is one of the few industries in China with full supply chain advantages, and suggests focusing on domestic innovative drug companies with validated platform capabilities in ADC and bispecific antibody fields.

Several listed companies convened emergency board meetings over the weekend, waiving meeting notice deadlines to urgently review and approve share buyback plans. The board of Shanghai Smith Adhesive New Material held an ad hoc meeting at 10 a.m. today, unanimously passing a proposal to repurchase shares through centralized bidding. The buyback fund size ranges from 50 million to 100 million yuan, with a maximum repurchase price of 45.98 yuan per share, a buyback period of three months, and funding from its own capital. Olympic Circuit also held an ad hoc board meeting over the weekend, planning to use no less than 200 million yuan and no more than 300 million yuan of its own or self-raised funds to repurchase shares at a price not exceeding 55 yuan per share, for employee stock ownership plans or equity incentives. Meanwhile, a major shareholder holding 20.11% of the company terminated a previously disclosed share reduction plan ahead of schedule without implementing any reductions. The board of RemeGen agreed to use its own or self-raised funds to repurchase shares, with the amount no less than 25 million yuan and no more than 50 million yuan, for employee stock ownership plans or equity incentives. Huaan Securities received a proposal from Chairman Zhang Hongtao, as the company's A-share closing price had fallen by a cumulative 26.46% over 13 consecutive trading days, triggering the buyback condition of being necessary to safeguard company value and shareholder rights. The proposal suggests a buyback fund of no less than 100 million yuan and no more than 200 million yuan, with the repurchase price not exceeding 150% of the average stock price over the 30 trading days before the board approves the buyback resolution, and a buyback period of no more than three months. The board will promptly study and formulate a plan.

On the evening of July 19, central enterprises including China Reform Holdings and China Chengtong Holdings, along with several multi-billion-yuan private equity firms and listed brokerages, intensively announced share buyback and increased holding plans, demonstrating their firm confidence in the A-share market through concrete actions. China Reform Holdings' subsidiary, China Reform Investment, has already utilized over 50 billion yuan from special re-lending facilities and supporting funds for share buybacks and increased holdings, and will continue to increase its holdings in central enterprise stocks in the future. China Chengtong Holdings and its affiliated entities have cumulatively purchased nearly 10 billion yuan of state-owned central enterprise stocks, and plan to further significantly increase their holdings in state-owned central enterprise and technology company stocks as well as ETFs. Multi-billion-yuan quantitative private equity firms Lingjun Investment and Pingfanghe Investment respectively announced they will use 200 million yuan and 100 million yuan of their own funds to subscribe to their own private equity products. Guolian Minsheng Securities and Huaan Securities each plan to repurchase shares worth 100 million to 200 million yuan. In addition, over ten listed companies including Midea Group and Olympic Circuit Technology also disclosed buyback or increased holding plans, with Olympic Circuit Technology planning to repurchase 200 million to 300 million yuan worth of shares, and RemeGen planning to repurchase 25 million to 50 million yuan worth of shares.

On the evening of July 19, a number of A-share listed companies disclosed buyback announcements, spanning electronics, pharmaceuticals, new materials, and other industries. Crystal New Materials plans to use its own funds to repurchase shares, with a total amount of no less than 50 million yuan and no more than 100 million yuan, at a price not exceeding 45.98 yuan per share. The repurchased shares will be used for sale or cancellation. Olympic Circuit Technology intends to use 200 million to 300 million yuan of its own or self-raised funds to repurchase shares, with a price cap of 55 yuan per share, for employee stock ownership plans or equity incentives, and the buyback period will not exceed six months. RemeGen plans to repurchase shares with 25 million to 50 million yuan, for employee stock ownership plans or equity incentives, at a price not exceeding 149 yuan per share, with a buyback period of no more than 12 months. Jianlong Micro-Nano New Materials intends to use 20 million to 40 million yuan of its own or self-raised funds to repurchase shares, at a price not exceeding 40 yuan per share, also for employee stock ownership plans or equity incentives, with a buyback period of no more than 12 months. Huaan Securities Chairman Zhang Hongtao proposed that the company use 100 million to 200 million yuan of its own funds to repurchase shares, based on maintaining company value and shareholder equity. The plan is to sell them through centralized competitive trading 12 months after the announcement of the buyback results and share changes report. If not fully sold within three years, the remaining shares will be cancelled.

The 2026 National Essential Medicines List has been officially released. The number of proprietary Chinese medicines has expanded significantly to 318 varieties, with 65 newly added varieties achieving combined terminal sales of over 16 billion yuan at public medical institutions in 2025. For the first time, the new essential medicines list includes 16 clinically high-value innovative drugs in a batch, among which are four domestically developed Class I original new drugs. This marks a step forward for innovative drugs from medical insurance access to hospital deployment and grassroots availability. China Post Securities believes that the 986 deployment principle is expected to drive rapid volume growth for listed varieties, particularly benefiting traditional Chinese medicine enterprises that have already established channel advantages in grassroots markets. At the same time, innovative drug companies such as RemeGen, whose products have entered the basic medication list, are poised to open up broad space for long-term standardized treatment. Founder Securities pointed out that this round of adjustments has strengthened the investment themes of policy implementation, channel volume growth, and financial report penetration.