EDDING GENOR (06998) issued a profit warning, expecting a mid-term net loss of 60 million to 70 million yuan, a reversal from profit to loss compared to the same period last year.

EDDING GENOR (06998) announced that it expects the Group to achieve revenue of approximately RMB 850 million to RMB 900 million for the six months ending June 30, 2026, compared to revenue of approximately RMB 1.1355 billion for the six months ending June 30, 2025; and a net loss of approximately RMB 60 million to RMB 70 million, compared to a net profit of approximately RMB 115 million for the six months ending June 30, 2025. The announcement states that the transition from net profit to net loss is primarily attributable to: i) Vancomycin injection being included in the twelfth batch of national organized bulk procurement in mid-2026. Although this bulk procurement will only take effect in the second half of 2026, the market's early reaction has adversely affected the Groups sales during the reporting period, with the impact becoming evident sooner than anticipated. This impact has been somewhat alleviated by the growth of the Group's innovative drugs (including Weisi Pei and Rujianing). The revenue of the Group's innovative drugs for the six months ending June 30, 2026, is expected to increase by approximately 50% compared to the same period in 2025. With the continuous improvement and strategic layout of the Group's commercialized products in recent years, along with academic promotion, the Group has efficiently consolidated the market foundation of products with core competitive barriers, setting a solid foundation for sustained growth in its medium to long-term operating performance and providing strong impetus; and ii) Our ongoing increase in R&D investment in the product pipeline has led to an increase in R&D expenses. Innovation is the strategic focus of the Group following its strategic merger. The Group will continue to invest R&D resources, focusing on advancing an integrated macromolecule antibody development platform and a small nucleic acid drug development platform covering various molecular forms. By accelerating the clinical development and commercialization processes in high-growth therapeutic areas such as breast cancer treatment, macromolecule antibody drugs, and chronic cardiovascular metabolic diseases, and leveraging the global collaboration value of the Groups pipeline (which has been initially validated by the GB261 transaction, resulting in cash proceeds of $48,419,599.63 in July 2026), the Group expects to further solidify its market position in innovative differentiated therapies and create sustainable long-term value for shareholders.