Jiabei You announced that due to overseas market sentiment and new EU regulatory requirements, the company's production and operations have been severely impacted and are not expected to return to normal within three months. Its stock will be placed under other risk alert. The company estimates first-half revenue of 55 million yuan, down 82.07 percent year-on-year, and a net loss attributable to shareholders of 101 million yuan, swinging from profit to loss. The impact is linked to the Nestlé infant formula recall earlier this year and new EU regulatory measures on arachidonic acid oil originating from China. The new EU rules require a certificate of absence of Bacillus cereus toxins for each shipment and impose a 50 percent inspection frequency, described by outsiders as the strictest controls in history. ARA is Jiabei You's core product, generating sales revenue of 388 million yuan last year, accounting for nearly 70 percent of total revenue. The company said it will respond by optimizing full-chain risk monitoring, strengthening customer communication, and accelerating new business development. It also warned that if full-year revenue in 2026 falls below 100 million yuan, the stock may be subject to delisting risk alert.
Cabio Biotech Wuhan Co LtdNew EU regulations impose strict controls on ARA oil, severely disrupting production and sales, with revenue down 82% and net loss.