The Board of Edding Genor announced that preliminary unaudited figures for the six months ended 30 June 2026 point to a sharp deterioration in earnings. Revenue is expected to fall to approximately RMB850 million–RMB900 million, a decline of about 20.80%–25.11% from RMB1,135.50 million in the prior-year period. The bottom line is projected to reverse from a RMB114.60 million profit in 1H 2025 to a net loss of roughly RMB60 million–RMB70 million.

Management attributes the downturn primarily to the anticipated inclusion of vancomycin injection in the Twelfth Batch of the National Centralised Volume-based Drug Procurement. Although the new procurement terms take effect in 2H 2026, market expectations have already suppressed sales in the reporting period.

Partially offsetting this pressure, sales of the company’s innovative drugs—led by Vascepa and Rujianing—are expected to rise about 50% year-on-year. Edding Genor also reported continued increases in research and development expenditure as it prioritises innovation following the recent strategic merger. The pipeline includes projects in breast cancer therapy, large-molecule antibodies and chronic cardiovascular and metabolic diseases. Further validation of this strategy came in July 2026, when a GB261 out-licensing deal generated USD48.42 million in cash.

The interim results are still subject to review by auditors and the audit committee and are scheduled for release at the end of August 2026. Shareholders and potential investors are advised to exercise caution when trading the company’s shares.