On October 29, Biocytogen (02315, 688796.SH) released its 2026 third-quarter report.
In the first three quarters, the company achieved operating revenue of 1.403 billion yuan, up 49.09% year on year; gross profit of 1.095 billion yuan, up 55.35%; and net profit attributable to shareholders of 3.12 billion yuan, up 173.77%.
Alongside the simultaneous surge in revenue and profit, the company's net cash flow from operating activities in the single third quarter reached 160 million yuan, up 170.13% year on year — the "quality" of profit and the business's "self-sustaining capability" have been validated at the same time.
Meanwhile, the company's new facility in Haimen, Jiangsu, has successively commenced production, adding further production capacity to support continued volume growth in the preclinical business.
In the first three quarters, the company achieved operating revenue of 1.403 billion yuan, up 49.09% year on year; gross profit of 1.095 billion yuan, up 55.35%, with an overall gross margin of 78.06%, up 3.14 percentage points year on year; net profit attributable to shareholders of 3.12 billion yuan, up 173.77%; and non-recurring net profit attributable to shareholders of 235 million yuan, up 307.62%.
The company has moved from "achieving profitability" into a phase of "large-scale profitability."
What deserves more attention than the growth rate itself is the composition of that growth.
Gross profit growth of 55.35% outpaced revenue growth of 49.09%, while operating costs rose only 30.40% year on year, significantly below the revenue growth rate.
This means the company is not trading price for scale — fixed costs are being diluted by revenue, and the scale effect is clearly visible in the financial statements.
Scale effect emerges, product mix upgrades
In the first three quarters, the gross margin was 78.06%, up 3.14 percentage points from 74.91% in the same period last year.
In other words, every additional yuan of revenue earned this year retained more gross profit.
This result stems from two aspects: first, the rising share of innovative animal models required for complex drug modalities such as bispecific antibodies, multi-specific antibodies and nucleic acid drugs, with the product mix continuing to move upward; second, preclinical CRO (pharmacological efficacy, PK/PD (pharmacokinetics/pharmacodynamics), pathology and toxicology) services extending toward high-value-added segments, deepening the service chain.
If the focus shifts from cumulative figures to the single quarter, a more noteworthy signal appears on the cash flow statement: net operating cash flow in the third quarter alone was 160 million yuan, up 170.13% year on year and up 37% quarter on quarter, with single-quarter operating cash flow reaching 2.25 times the net profit attributable to shareholders for the same period.
In the biopharmaceutical industry, a long-term divergence between book profit and real cash flow is the norm — revenue is recognized first and collections come later, making it easy for contract assets and accounts receivable to pile up.
Biocytogen's cumulative net operating cash flow in the first three quarters was 422 million yuan, higher than the 3.12 billion yuan of net profit attributable to shareholders for the same period, and has already exceeded the full-year level of 2025.
This shows that the company's revenue is genuinely converting into collections, rather than remaining in receivable accounts on the statements.
The prosperity of demand must ultimately be met by the supply side.
During the reporting period, the new animal facility in Haimen successively commenced production.
After the new facility was put into use, the company's supply capacity for animal models and pharmacological efficacy services was further enhanced, and the total scale of animal housing was further expanded.
The tiered capacity layout across Beijing, Haimen and Boston continues to materialize, and the company's previously proposed plan of "fully guaranteeing supply capacity in the next 2-3 years" is turning from blueprints into deliverable reality.
The RenSuper Workstation released in May 2026 integrates the company's accumulated million-level real fully human antibody sequence data, AI (artificial intelligence) intelligent molecule screening and an automated high-throughput intelligent manufacturing system into a closed loop: the AI model is trained on real immune data, the automated system completes wet-lab validation, and the validation results in turn feed back into model iteration.
Antibody discovery has thus shifted from a "project-based manual workshop" to an "industrialized platform paradigm," and the R&D investment continuously increased in the third quarter is precisely the direct input for this paradigm iteration.
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