MEDTIDE (03880) announced its interim results, with a net profit of approximately 53.67 million yuan, a year-on-year decrease of 47.4%.

MEDTIDE (03880) announced its interim results for 2026, with revenue of approximately 235 million yuan, a year-on-year decrease of 7.6%; gross profit of about 136 million yuan, down 12.3% year-on-year; and net profit of around 53.68 million yuan, a decline of 47.4% year-on-year. The announcement stated that the drop in revenue was mainly attributed to the timing differences in the delivery and revenue recognition of several customer orders, which are expected to be partially recognized in the second half of 2026, resulting in a decrease in interim revenue. Revenue from other customers continued to grow and partially offset this decline, demonstrating the resilience and diversification of the groups customer base. The board believes that these interim fluctuations do not affect the group's core business strength and long-term development prospects. As cooperation with customers deepens and progress is made in the customer pipeline, the group successfully secured a significant order from an overseas client in July 2026, further enhancing its order backlog. The decrease in net profit was mainly due to (i) foreign exchange losses arising during the period due to the appreciation of the renminbi; (ii) a one-time gain previously recognized as fair value changes in financial liabilities recorded at fair value through profit or loss upon the conversion of redeemable liabilities into equity at the time of the IPO, which did not recur for the six months ended June 30, 2025; and (iii) the year-on-year decrease in revenue, leading to reduced gross profit. In the first half of the year, the group actively continued to expand its peptide production capacity at the Qiantang and Rocklin parks. New large-scale equipment (including 3,000-liter SPPS reactors and 50-inch purification columns) is currently undergoing commissioning and is expected to significantly enhance the group's manufacturing capacity for peptide active pharmaceutical ingredients (APIs) to several tons, enabling production batches of up to 100 kilograms, thereby allowing the group to undertake multiple peptide orders of 100 kilograms each. Meanwhile, renovation and installation projects at the Rocklin park are progressing as planned. For the six months ended June 30, 2026, capital expenditures increased to 98.9 million yuan, reflecting the groups ongoing capacity expansion efforts.