Zhenghai Biotech 2026 H1: Revenue of RMB 160 million, down 15% YoY; Dental Barrier Membrane revenue down 25% YoY.

Source: Zhenghai Bio 2026 Interim Report

Net Profit Attributable to Shareholders of the Parent Company -27.85% YoY / Dental Barrier Membrane Revenue -25.08% YoY / R&D Investment -4.55% YoY

DentalGoodNews｜On August 25, 2026, Zhenghai Biotech released its 2026 semi-annual report. During the reporting period, the company achieved operating revenue of RMB 160 million, down 14.94% year-on-year; net profit attributable to shareholders of the parent company was RMB 33.3061 million, down 27.85% year-on-year; net profit attributable to shareholders of the parent company excluding non-recurring gains and losses was RMB 27.1570 million, down 31.74% year-on-year.

Source: Zhenghai Bio 2026 Interim Report

In terms of revenue structure, the core product Dental Barrier Membrane generated sales revenue of RMB 57.7757 million, down 25.08% year-on-year, with operating costs up 12.60% year-on-year. The product's gross margin fell to 78.93%, down 7.05 percentage points year-on-year. According to previous reports by DGN, Zhenghai Biotech's Dental Barrier Membrane product saw a 15.82% revenue decline and a 0.55 percentage point gross margin decline in 2025. By comparison, during this reporting period, the product's revenue decline widened to 25.08%, and the gross margin decline further expanded to 7.05 percentage points.

The company stated that the slowdown in growth of the private dental implant market and intensifying homogeneous competition in the industry are the main reasons. It is currently stabilizing product market share through precision marketing strategies and market-oriented dynamic pricing mechanisms. During the reporting period, the company's Dental Barrier Membrane product obtained a Class D registration certificate approved by the Indonesian Ministry of Health for overseas registration. The calcium silicate bioceramic oral bone repair material, which received its Medical Device Registration Certificate in January 2026, has completed production line conversion and achieved industrial implementation. As of the end of the reporting period, it had achieved provincial listing in 25 provinces nationwide. In addition, to hedge against the decline in core business, the company is advancing the volume ramp-up of new products. The promotion of active biological bone hospital admissions is progressing in an orderly manner, with nearly 60 new hospitals added cumulatively in the first half of the year.

Source: Zhenghai Bio 2026 Interim Report

On the expense side, the company's selling expenses in the first half of the year were RMB 59.5640 million, down 16.32% year-on-year; administrative expenses were RMB 14.5910 million, down 8.68% year-on-year; R&D investment was RMB 23.9981 million, down 4.55% year-on-year. As the revenue decline exceeded the R&D investment decline, the R&D investment as a percentage of operating revenue was passively raised to 15.02%. The Absorbable Dental Membrane product under development has completed enrollment of all subjects.

In terms of cash flow, during the reporting period, Net Cash Flow from Operating Activities was RMB 28.2916 million, down 40.65% year-on-year, mainly due to reduced cash received from sales of goods. Net cash flow from investing activities was RMB 26.2386 million (compared to RMB -29.0385 million in the same period last year), turning from negative to positive, mainly due to increased matured wealth management products. Net cash flow from financing activities was RMB -49.7392 million (compared to RMB -81.7144 million in the same period last year), narrowing by 39.13% year-on-year, mainly due to reduced dividend distributions.