Zhifei Biological H1 Revenue Falls 18.36%, Net Loss Widens to RMB809 Million

Zhifei Biological released its semi-annual report for 2026. In the first half, the company achieved operating revenue of RMB4.024 billion, down 18.36% year-on-year. The net loss attributable to shareholders was RMB809 million, widening from a loss of RMB606 million in the same period of 2025. The non-GAAP net loss attributable to shareholders was RMB806 million, also expanding year-on-year.

By business segment, agency product revenue was RMB3.595 billion, down 17.99% year-on-year, with a gross margin of 11.95%. Self-developed product revenue was RMB382 million, down nearly 25% year-on-year, while maintaining a gross margin above 70%.

Batch release data showed that in the first half of 2026, the batch release volume for Merck's nine-valent HPV vaccine was zero, compared with 4.2388 million doses in the same period of 2025. GSK's shingles vaccine also had zero batch releases, versus 574,700 doses in H1 2025. In 2026, Zhifei Biological signed a new cooperation agreement with Merck, changing the original "agreed minimum purchase amount" to "dynamically assess and adjust procurement and supply volumes based on market demand." As of the end of the first half, the company's inventory stood at RMB2.403 billion, accounting for 8.64% of total assets, down from over 15% in 2025, which the company attributed mainly to sales of agency products.

For self-developed products, the batch release volume of Hib vaccine in the first half was 1.1213 million doses, up 92% year-on-year. The 23-valent pneumococcal polysaccharide vaccine achieved new batch releases. The ACYW135 polysaccharide vaccine batch release volume was roughly flat compared with 2025. The AC conjugate vaccine had no batch releases in the period, while the AC polysaccharide vaccine batch release volume nearly halved year-on-year.

In the innovative drug sector, subsidiary Chenan Biologics' liraglutide injection was approved for marketing in July 2026, marking the company's first approved therapeutic biological product in the metabolic disease field. Domestic peers such as Huadong Medicine and Tonghua Dongbao have already received approval for similar products and entered the commercialization stage. Other innovative drugs in the same class include semaglutide and tirzepatide. According to the semi-annual report, as of the disclosure date, insulin degludec injection is under marketing review, semaglutide injection (for diabetes and weight loss) and insulin degludec/insulin aspart injection have completed Phase III clinical trials, and the GLP-1/GIP dual-target agonist CA111 injection is undergoing Phase I clinical trials.

At the close on August 28, Zhifei Biological's share price stood at RMB14.2, down 5.33%, with a market capitalization of RMB33.992 billion.