MEDTIDE (03880) has released its interim results for 2026, reporting revenue of approximately RMB 235 million, a year-on-year decrease of 7.6%. Gross profit stood at around RMB 136 million, down 12.3%, while net profit reached approximately RMB 53.677 million, reflecting a substantial 47.4% decline compared to the prior-year period.
The company attributed the revenue dip primarily to timing differences in the delivery and revenue recognition of certain customer orders, a portion of which is expected to be recognized in the second half of 2026. This caused the interim revenue to fall, although continued growth from other clients partially offset the decline, highlighting the resilience and diversification of the group's customer base. The board believes these interim fluctuations do not affect the group's core business strength or long-term development prospects. As collaboration with clients deepens and the client pipeline progresses, the group successfully secured a significant order from an overseas customer in July 2026, further strengthening its order backlog.
The decrease in net profit is mainly due to: (i) exchange losses incurred during the period resulting from the appreciation of the Renminbi; (ii) the non-recurrence of the one-off gain recognized in the six months ended June 30, 2025, arising from fair value changes of financial liabilities measured at fair value through profit or loss, which was recorded upon the conversion of redeemable liabilities to equity at the time of listing, and did not repeat in the 2026 interim period; and (iii) a reduction in gross profit attributable to the year-on-year decline in revenue.
During the first half of the year, the group continued to actively expand its peptide production capacity at the Qiantang and Rocklin campuses. Newly added large-scale equipment, including a 3,000-liter SPPS reactor and a 50-inch purification column, is currently undergoing commissioning. This is expected to significantly boost the group's commercial-scale manufacturing capacity for peptide active pharmaceutical ingredients (APIs) to multiple metric tons, enabling a maximum production capacity of up to 100 kilograms per batch. This will allow the group to undertake multiple peptide orders at the 100-kilogram scale. Meanwhile, renovation and equipment installation at the Rocklin campus are progressing as planned. For the six months ended June 30, 2026, capital expenditure increased to RMB 98.9 million, reflecting the group's ongoing capacity expansion initiatives.
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