Zhenghai Bio 2026Q3: Revenue 71.3918 million yuan, down 18.76% year-on-year; Net Profit Attributable to Shareholders of the Parent Company down 27.67% year-on-year

Source: Zhenghai Biology 2026 Third Quarter Report

Operating revenue decreased 18.76% year-on-year / Net Profit Attributable to Shareholders of the Parent Company RMB 15.1281 million / Cumulative revenue for the first three quarters RMB 231 million

DentalGoodNews｜On October 26, 2026, Zhenghai Bio-Tech (300653.SZ) released its unaudited third-quarter 2026 report. In the third quarter, the company's operating revenue was RMB 71.3918 million, down 18.76% year-on-year; net profit attributable to shareholders of the listed company (hereinafter referred to as Net Profit Attributable to Shareholders of the Parent Company) was RMB 15.1281 million, down 27.67% year-on-year. Operating revenue for the first three quarters decreased 16.16% year-on-year, expanding by 1.22 percentage points from the 14.94% decline in the first half.

For the first three quarters cumulatively, the company's operating revenue was RMB 231 million, compared with RMB 276 million in the same period last year; Net Profit Attributable to Shareholders of the Parent Company was RMB 48.4342 million, down 27.80% year-on-year; net profit attributable to shareholders of the listed company after deducting Non-recurring Gains and Losses (hereinafter referred to as non-recurring net profit attributable to the parent company) was RMB 40.0012 million, down 32.04% year-on-year. Basic Earnings Per Share was RMB 0.2691, compared with RMB 0.3727 in the same period last year; Weighted Average Return on Equity (ROE) was 5.43%, down 2.14 percentage points year-on-year.

In the first three quarters, the decline in non-recurring net profit attributable to the parent company (32.04%) was greater than the decline in Net Profit Attributable to Shareholders of the Parent Company (27.80%). Non-recurring Gains and Losses during the same period totaled RMB 8.4330 million, of which gains and losses from changes in fair value and gains and losses from disposal of financial assets and financial liabilities held by non-financial enterprises amounted to RMB 10.0001 million, with RMB 3.1291 million in the third quarter alone. This item exceeded total Non-recurring Gains and Losses because net non-operating income and expenses (-RMB 575,600) and the income tax impact (-RMB 1.4882 million) together reduced the total by RMB 2.0638 million, while government subsidies and gains and losses on asset disposal together increased it by RMB 496,700.

Source: Zhenghai Biology 2026 Third Quarter Report

In terms of costs and expenses, operating costs for the first three quarters were RMB 40.8181 million, down 1.11% year-on-year, a smaller decline than the 16.16% decrease in operating revenue. Calculated as operating revenue minus operating costs, Gross Margin was 82.34%, compared with 85.03% in the same period last year, down 2.69 percentage points. Selling expenses were RMB 82.1603 million, down 21.67% year-on-year; R&D expenses were RMB 35.5064 million, down 6.05% year-on-year, with their proportion of operating revenue rising from 13.71% to 15.36%.

In terms of cash flow, Net Cash Flow from Operating Activities for the first three quarters was RMB 45.9529 million, down 38.06% year-on-year, compared with RMB 74.1939 million in the same period last year; cash received from sales of goods and provision of services was RMB 258 million, down 12.72% year-on-year. Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets was RMB 12.7739 million, up 103.70% year-on-year, which the report stated was mainly due to a year-on-year increase in production workshop renovation fees paid during the period. As of September 30, 2026, inventory was RMB 39.3769 million, up 33.25% from the beginning of the year, which the report stated was mainly driven by the launch and sales of new products and an increase in contract performance costs.

According to previous reports by DGN, the company achieved operating revenue of RMB 160 million in the first half of 2026, 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; sales revenue of its core product Dental Barrier Membrane was RMB 57.7757 million, down 25.08% year-on-year, while operating costs rose 12.60% year-on-year, and the product's Gross Margin fell to 78.93%.