Economic Observation Network Jiankai Technology (688356) experienced a significant decrease in net profit in the first half of the year due to the termination of clinical project provision for impairment, and also lowered its revenue expectations for international clients in the second half of the year.

Performance and business situation:
The company terminated the Phase III clinical project for small cell lung cancer (due to changes in market competition and a significant decrease in commercial value), and provided a full impairment of 70.64 million yuan for the capitalized amount of research and development This directly led to a year-on-year decline of 86.76% in net profit for the first half of the year, with only 2.9198 million yuan On the surface, it appears to be 'increasing revenue without increasing profits' - revenue increased by 42.65%, but profits were eaten up by a one-time impairment.

Company fundamentals:
The company has lowered its revenue expectations for two international clients who are close to commercialization in the second half of the year One client withdrew their listing application (due to a small indication market), while another needs to submit additional materials and postpone the listing. This is a signal that is more important than impairment - it affects the certainty of future cash flows, and impairment is just a 'buy' of past decisions.

The above content is based on publicly available information and does not constitute investment advice.