JOINN Laboratories (China) Co., Ltd. (JOINN) reported a sharp earnings rebound for the six months ended 30 June 2026, driven primarily by a surge in fair-value gains from biological assets.
Revenue and Margins • Revenue rose 5.3% year on year to RMB 703.82 million, with non-clinical studies contributing 96.0% of the total. • Gross profit increased 38.0% to RMB 144.89 million, lifting the gross margin to 20.6% from 15.7% a year earlier. • Gains from changes in fair value of biological assets jumped to RMB 795.12 million (1H25: RMB 94.98 million), underpinning overall profitability.
Earnings Performance • Profit for the period soared 1,126.8% to RMB 747.52 million (1H25: RMB 60.93 million). • Net profit margin expanded to 106.2%, largely reflecting the sizable fair-value gain. • Basic and diluted EPS rose to RMB 1.00 from RMB 0.08.
Cost Structure and Expenses • Cost of services slipped 0.8% to RMB 558.93 million, keeping overall costs broadly stable. • Selling and marketing expenses edged up 10.8% to RMB 16.19 million, while general and administrative expenses held flat at RMB 144.65 million. • R&D spending reduced slightly to RMB 42.45 million. Finance costs declined 20.9% to RMB 0.61 million.
Balance-Sheet Highlights • Net assets attributable to equity shareholders grew 10.7% to RMB 8.97 billion. • Net current assets stood at RMB 4.90 billion, while the gearing ratio increased to 17.1% from 14.0% at end-2025. • Cash at bank and on hand totaled RMB 823.94 million (31 Dec 2025: RMB 911.85 million).
Order Book and Operations • Orders on hand reached approximately RMB 3.70 billion, up 60.9% year on year; newly signed orders nearly doubled to RMB 2.02 billion. • Revenue mix remained consistent: non-clinical studies RMB 675.90 million; clinical trial-related services RMB 27.74 million; research model sales RMB 0.18 million. • JOINN’s Suzhou site passed an unannounced U.S. FDA GLP inspection in May 2026, and the Suzhou facility also cleared China NMPA’s new-standard GLP review in June.
Capital Expenditure and Cash Use • First-half capex reached RMB 72.50 million, focused on facility expansion in Beijing and Guangzhou. • As of 30 June 2026, JOINN had deployed RMB 2.99 billion of its Hong Kong IPO proceeds, with RMB 2.29 billion remaining earmarked for U.S. expansion, China facility build-outs, acquisitions, and working capital. • The company held RMB 630.00 million in wealth-management products issued by CITIC Securities and subsidiaries.
Dividend and Subsequent Events • The Board declared no interim dividend. • Management reported no material post-period events up to the announcement date.
Strategic Priorities JOINN plans to: 1. Enhance GLP compliance, project management efficiency, and AI-driven workflows. 2. Expand capacity via new Guangzhou and Chongqing facilities and further equip U.S. subsidiary Biomere. 3. Broaden service scope into early-stage drug discovery, medical-device safety testing, and organoid-based models. 4. Strengthen clinical CRO and testing capabilities, aiming for seamless non-clinical-to-clinical integration. 5. Continue exploring domestic and overseas M&A to deepen integrated CRO offerings.
No significant acquisitions or disposals were recorded during the period, and the company reported no contingent liabilities or asset pledges. JOINN maintains that its liquidity position is solid, supported by strong operating cash flow and a sizeable cash balance.