Tide Pharmaceuticals (03880)'s profit for the first half of the year is expected to decrease by about 44% to 51.6% year on year

Zhitong Finance App News, Ted Pharmaceuticals (03880) issued an announcement. Compared with the data for the six months ended June 30, 2025, the board of directors expects the six months ending June 30, 2026:1. Revenue will be between approximately RMB 229.8 million to RMB 239.2 million, a year-on-year decrease of about 5.7% to 9.4%; 2. Profit will be between approximately RMB 49.4 million to RMB 57.1 million, a year-on-year decrease of about 44.0% to 51.6%; 3. Adjusted net profit (measured in non-IFRS) will be approximately RMB 51.4 million to RMB 51.4 million 59.3 million yuan, a year-on-year decrease of about 43.1% to 50.6%.

These changes in performance are mainly due to the impact of the following combination of factors: 1. The timing difference in revenue recognition: Delivery of some customer orders and revenue recognition are expected to be delayed until the second half of 2026, leading to a phased decline in mid-term revenue. 2. The main reasons for the decline in profits: (i) Certain Group cash and cash equivalents and trade receivables are denominated in US dollars. The appreciation of RMB during the period led to loss of foreign exchange on the books, which had a negative impact on profits; (ii) Non-recurrent income disappeared: The mid-term profit in 2025 includes a non-recurring income generated by changes in the fair value of financial liabilities recorded as profit and loss at fair value due to redemption of liabilities converted into equity when the company went public. This is a one-time project and will no longer occur in mid-2026; (iii) Sales revenue declined year over year, leading to a decrease in gross profit.

The Board wishes to emphasize that the above fluctuations in interim results have not affected the Group's core business strength and long-term development prospects. As cooperation with customers continues to deepen and its pipeline progresses, the Group successfully obtained a large order from overseas customers in July 2026. The order strengthened the Group's order reserves.