Yao Ming Kangde (02359) announced interim results. Net profit attributable to parent company holders was about 11.08 billion yuan, up 33.7% year-on-year, with a year-on-year increase of 5.1 yuan for every 10 shares

According to Zhitong Finance App News, Yao Ming Kangde (02359) announced the 2026 interim results, with revenue of about 28.8975 billion yuan, up 38.9% year on year; gross profit of about 15.382 billion yuan, up 68.8% year on year; net profit attributable to parent company holders was about 11.08 billion yuan, up 33.7% year on year; adjusted net profit attributable to parent company holders was about 11.57 billion yuan, up 83.2% year on year; basic profit of 3.8 yuan per share, with a cash dividend of 5.1 yuan per 10 shares.

Among them, the chemical business achieved revenue of 24.99 billion yuan, an increase of 53.3% over the previous year, mainly due to the steady progress of pipeline molecules in the later stages, compounded by the quarterly release of additional production capacity last year. The testing business achieved revenue of 2.48 billion yuan, an increase of 31.5% over the previous year. The biology business achieved revenue of 1.39 billion yuan, an increase of 11.2% over the previous year. It mainly benefited from internal and external business linkages in drug discovery, cross-regional cooperation, and integrated services in hot fields to efficiently empower global customers. As of the end of June 2026, the company's ongoing business orders amounted to 66.43 billion yuan, an increase of 25.2% over the previous year.

According to the announcement, the company continues to focus on the unique integrated CRDMO core business to accelerate global layout, production capacity and capacity building; grasp the certainty of customer empowerment needs, efficiently serve customers and help global patients, and drive the company's long-term development; deepen refined management and operation, and continue to improve production and operation efficiency and enhance resilience to cope with the complex and changing business environment.

Thanks to the greater success of multiple customer products, as well as the company's unique CRDMO model and excellent management and execution, the company comprehensively raised its 2026 full-year performance guidelines. It is estimated that in 2026, the company's overall revenue will increase from 513.53 billion yuan to 58.5 billion yuan, and the year-on-year growth rate of continuing business revenue will increase from 18% to 22% to 35% to 39%. The company will continue to promote high-quality growth, steadily release economies of scale, refine operation and management capabilities, and efficiently manage challenges such as rising production capacity and exchange rate fluctuations. The company is confident of maintaining a stable and resilient net profit margin level attributable to non-IFRS parent company holders in 2026. In order to better meet growing customer needs, the company further accelerated the global production capacity layout and initiated the construction of a new base in Changzhou ahead of schedule. It is estimated that capital expenditure will increase from 6.5 to 7.5 billion yuan to 7.5 billion yuan in 2026. With business growth and efficiency improvements, adjusted free cash flow is expected to increase from $10.5-11.5 billion to $13.5-14.5 billion in 2026.