On the evening of August 28th, Watson Biosciences disclosed its 2026 semi annual report. The report shows that the company's main business has developed steadily, achieving a revenue of 834 million yuan and a net profit attributable to the parent company of 54.192 million yuan in the first half of the year, a year-on-year increase of 25.56%; The non recurring net profit increased by 2.3 times, reaching 94.9448 million yuan. The operating performance continued to maintain a good growth trend, the operating cash flow continued to improve, the period expenses significantly decreased, and the operating quality indicators such as return on net assets continued to improve. In the first half of the year, the company accelerated the construction of its synthetic biology innovation platform, concentrated resources to promote the landing of new business projects, and completed the production of synthetic biology products, achieving a revenue of over 10 million yuan.

Double valent HPV continues to win the bid for national centralized procurement

In the first half of 2026, Watson Biological's vaccine products achieved a total sales revenue of 816 million yuan, accounting for 97.84% of the total operating revenue, and the batch issuance volume of vaccine products increased by 46.66% year-on-year. With the deep adjustment of market structure, the competition in the domestic vaccine market remains fierce, and the market presents a diversified competitive trend. The age structure and consumption habits of the vaccinated population in the domestic market are also continuously changing. The company assessed the situation, actively responded, and concentrated its advantageous resources to promote the development of its core business. The 13 valent pneumococcal conjugate vaccine continued to maintain good market competitiveness, and the bivalent HPV vaccine continued to win the bid and be shortlisted in the 2026 National Immunization Program Vaccine Centralized Procurement Project. Shanghai Zerun Biotechnology, a holding subsidiary mainly engaged in bivalent HPV vaccines, doubled its revenue in the first half of the year and significantly increased its net operating cash flow.

In the research and development of vaccine products, Watson Biotech has invested over 150 million yuan in R&D, with a R&D investment intensity of over 18%. The company's novel coronavirus variant mRNA vaccine (Omicron JN. 1), developed iteratively based on the constructed mRNA technology platform, is actively promoting the drug registration related work of applying for marketing license; The adsorption tetanus vaccine developed by the company has completed the main research work of the Phase III clinical trial site. The attenuated live varicella vaccine has obtained the "Drug Clinical Trial Approval Notice" and is approved to carry out clinical trials.

Breakthrough of zero new business revenue

Watson Biotech has laid out a series of pharmaceutical and health products based on market demand and business relevance. As a platform for the company's photobiosynthetic technology and industrialization, its controlling subsidiary, Aisenze Biotechnology, continues to focus on precise photobiosynthetic production of nutritious and healthy natural products, committed to using biotechnology to obtain natural extracts and create a healthy and beautiful life. During the reporting period, Aisenze Biotechnology has achieved production and sales, with a revenue of over 10 million yuan from synthetic biology products in the first half of the year.

The company will fully leverage its existing R&D and industrialization capabilities and advantages, accelerate the construction of a synthetic biology innovation platform, concentrate resources to promote the landing of new business projects, promote the transformation of R&D achievements into products and applications, expand the company's business areas and product pipelines, strive to open up new business growth curves, and contribute to the long-term sustainable development of the company.

Overseas markets achieve double-digit growth year-on-year

From January to June 2026, Watson Biosciences achieved overseas business revenue of approximately 243 million yuan, a year-on-year increase of 13.64%. Two new countries were added to its product exports, namely Jordan and Pakistan. The first batch of 23 valent pneumonia vaccines was delivered in the Philippines. As of now, the company's products have been exported to 28 countries and regions.

The overseas Phase III clinical research phase of Watson Bio's 13 valent pneumococcal conjugate vaccine in Indonesia has been successfully completed, which will further enhance the vaccine's flexibility in overseas markets and improve market competitiveness. The company continues to promote technology transfer projects in multiple countries and regions such as Egypt and Malaysia, which will effectively help enhance the independent vaccine manufacturing capabilities in Africa, Southeast Asia, and other regions, and benefit more people with innovative vaccines produced locally using "Chinese technology".

Watson Biotech will continue to rely on a differentiated product matrix to accurately connect with the health needs of emerging markets, achieving synchronous growth and expansion of international business revenue and market territory. High quality Chinese vaccine products are rapidly becoming an important carrier and starting point for the joint construction of the "the Belt and Road" initiative, striving to break the existing pattern of industries monopolized by international giants for a long time, and contributing China's strength to public health in the world, especially in low - and middle-income countries.

Planned fundraising of 2.2 billion yuan for private placement steadily advancing

In the first half of 2026, Watson Biotech's net cash flow from operating activities was approximately 174 million yuan, a year-on-year increase of 49%, thanks to the company's optimized arrangements for operating activities such as project research and development, raw material procurement, and promotion expense payments. With the expansion of product research and operation, the company is also seeking financing support through channels such as private placements, interbank markets, and commercial bank credit. This will further broaden financing channels, optimize financing structures, and reduce financing costs.

Recently, the shareholders' meeting of Watson Biotech voted to approve a new private placement plan, which is expected to introduce about 2.2 billion yuan in working capital for the company, an increase of about 10% compared to the previous plan. This private placement is precisely in line with the high investment and long cycle characteristics of the vaccine industry, and will focus on the industrialization of mRNA technology platform, overseas market expansion, and consolidation of core vaccine business, providing sufficient financial support for innovative research and development and industrial upgrading. The application for private placement has been accepted by the Shenzhen Stock Exchange, and the issuance is currently progressing steadily according to plan.