Performance Turns Around: Boya Bio Faces "Aftereffects" of the Merger

Translated from: China Business News

Cheng Jing reporter Chen Ting, Zhao Yi, Shenzhen report

“The past year has been anything but ordinary for the blood products industry. Whether it’s the macroeconomic environment or industry tracks, everything has gone through a ‘stress test.’” Recently, the management of Boya Bio (300294.SZ) admitted at an earnings call.

In 2025, listed blood products companies collectively turned in a set of results showing a decline in performance. Among them, Boya Bio (300294.SZ) increased revenue but not profits; net profit fell 71.61% year over year, and net operating cash flow decreased by nearly 80% year over year. The larger factor affecting the company’s profitability was an acquisition: Anhui Greenke Pharmaceutical Sales Co., Ltd. (hereinafter referred to as “Greenke”). Due to a downturn in the product market, it led to increased impairment losses on intangible assets and goodwill. In addition, amortization of appraisal increment generated by Guangzhou? (China) Biological Products Co., Ltd. (hereinafter referred to as “Green Cross”) increased.

In November 2024, Boya Bio completed a premium acquisition of 100% of the equity interests of Green Cross Hong Kong Holdings Co., Ltd. (hereinafter referred to as “Green Cross Hong Kong”). At that time, Green Cross Hong Kong was in a loss-making position. The acquisition price was as high as 1.82 billion yuan, forming goodwill of 728 million yuan (allocated to two asset groups: Green Cross and the plasma stations, as well as Greenke). The transaction did not include performance earn-out conditions.

The announcement shows that Greenke mainly engages in pharmaceutical distribution. In 2025, Boya Bio made provisions for impairment of intangible assets and goodwill related to Greenke totaling approximately 308 million yuan. Among them, the exclusive distribution rights for Greenke’s franchise (medical aesthetic products—hyaluronic acid) were fully impaired, amounting to 198 million yuan.

After making the impairment provisions, will Greenke spin off the medical aesthetic business? Will there be further impairment possibilities for the asset group in the future? In response, a reporter from China Business News telephoned and sent a letter to Boya Bio. A staff member in the company’s securities department said the interview request letter had been received. But as of the time of publication, the other party had not replied.

Net profit fell by more than 70%

The annual report shows that in 2025, Boya Bio’s revenue was approximately 2.06B yuan, up 18.69% year over year; net profit was approximately 113 million yuan, down 71.61% year over year; and non-recurring profit or loss adjusted net profit was approximately -7.7575 million yuan, down 102.57% year over year.

Among them, due to the market downturn for medical aesthetic products hyaluronic acid that Greenke distributes, the products no longer generated economic benefits. Boya Bio fully provided impairment for the intangible asset of the franchise distribution rights for such products. This was combined with a provision for goodwill impairment of 110 million yuan, totaling roughly the equivalent of eroding nearly 80% of the company’s net profit for 2024.

The announcement shows that in 2025, Greenke’s revenue was approximately 198 million yuan and it incurred a loss of approximately 8.1885 million yuan. In fact, in the year Greenke was acquired by Boya Bio, Greenke was already in a loss-making state.

In July 2024, Boya Bio announced its plan to acquire Green Cross Hong Kong. Green Cross is its blood products company established within China. Green Cross focuses on research and development, production, and sales of blood products. At the same time, through Greenke, it代理imports albumin, recombinant ◆ factors, and medical aesthetic products for sale in China. According to the then announcement, Green Cross Hong Kong continued to incur losses in the first three quarters of 2022 and 2023. As of the end of September 2023, net profit was -12.1204 million yuan, yet the estimated value of all equity interests was approximately 1.6777 billion yuan, with an appreciation rate of 159.97%. On this basis, Boya Bio ultimately set the acquisition price for Green Cross Hong Kong at 1.82 billion yuan, which was a 61.1k yuan premium over the target’s valuation.

In 2024, Greenke’s net profit was approximately -1.8317 million yuan, and Green Cross’s net profit was approximately 611,000 yuan. By the end of 2024, the book value of goodwill in Boya Bio’s consolidated financial statements was approximately 1.1B yuan.

In 2025, when Boya Bio conducted goodwill impairment testing, it allocated the 728 million yuan goodwill formed from acquiring Green Cross Hong Kong to two asset groups—Green Cross and the plasma stations, and Greenke—namely 613 million yuan and 115 million yuan, respectively. Based on the assessment results, Green Cross did not recognize goodwill impairment provisions, while the recoverable amount of Greenke’s asset group was lower than its carrying value, leading to an estimated goodwill impairment provision of approximately 110 million yuan.

In fact, Boya Bio’s performance over the past two years has fluctuated significantly due to goodwill impairment.

The annual report shows that in 2023, Boya Bio’s net profit fell 45.06% year over year to approximately 237 million yuan, mainly due to provisions for goodwill impairment of about 298 million yuan formed by the acquisition of Newbai Pharmaceutical. In 2024, the company’s net profit increased 67.18% year over year to approximately 396 million yuan, mainly because the base in the same period of 2023 was lower, as goodwill impairment and other asset impairment provisions were recognized in 2023. However, in 2024, Boya Bio still recognized an additional goodwill impairment provision of 73 million yuan for Newbai Pharmaceutical. By this point, all goodwill of 371 million yuan formed from Boya Bio’s acquisition of Newbai Pharmaceutical had been fully provided for.

The announcement shows that Newbai Pharmaceutical was acquired by Boya Bio in 2015 and mainly engages in R&D of biochemical drugs. The company’s main products include Compound Bone Peptide Injection, Oxytocin Injection, Heparin Sodium Injection, and Posterior Pituitary Lobe Injection. In 2023, Newbai Pharmaceutical’s net profit fell 19.14% year over year, mainly due to a downturn in performance driven by综合market factors such as the volume-based procurement policy (集采) and adjustments to the National Reimbursement Drug List. In 2024, Newbai Pharmaceutical’s net profit fell 21.29% year over year, mainly due to a downturn in performance driven by comprehensive market factors such as the volume-based procurement of Oxytocin Injection and regional alliance volume-based procurement. In 2025, Newbai Pharmaceutical’s revenue fell 14.25% year over year and its net profit fell 20.11% year over year.

Blood products core business under pressure

Apart from asset impairment, in 2025 Boya Bio’s blood products business also saw a decline in gross margin due to factors such as volume-based procurement (集采), DRG/DIP (payment by diagnosis-related group/disease-type value),医保控费 (reimbursement expenditure controls), and intensifying market competition.

Boya Bio mainly engages in R&D, production, and sales of blood products, including three major categories: albumin, immunoglobulins, and coagulation factors. Among them, albumin is the most abundant protein in plasma and is currently the blood product with the largest domestic usage; it is widely used to treat tumors, liver diseases, and diabetes. The company’s products cover 10 products in 31 specifications, including human albumin, intravenous human immunoglobulin (pH4), and coagulation factors. As of the end of 2025, Boya Bio had 21 single-plasma collection stations, including 20 active plasma collection stations. Its raw plasma collection volume was 662.31 tons, up 5.03% year over year.

At the earnings call, Boya Bio’s management said that in 2025 the company’s total plasma collection was 662.31 tons, up 31.72 tons year over year, an increase of 5.03%. Of that, Boya Bio’s plasma collection stations collected 542.4 tons, up 20.37 tons year over year, an increase of 3.97%; and Green Cross’s plasma collection stations collected 119.91 tons, up 11.35 tons year over year, an increase of 10.46%.

In 2025, Boya Bio’s revenue from its blood products business was approximately 1.67B yuan, accounting for 81.21% of total revenue. Gross margin was 53.63%, down 11.48% year over year. During the reporting period, sales volume of the blood products business was about 4.7375 million bottles, up 22.64% year over year. Production volume increased 38.14% year over year to approximately 5.2911 million bottles, and inventory increased 65.41% year over year to approximately 1.3661 million bottles.

During the reporting period, Boya Bio’s consolidated-level gross margin was 49.9%, down 14.8% year over year. This was mainly because within the consolidation scope, Green Cross has fewer product categories and lower product collection yields, which affected the overall gross margin; and because the blood products industry is influenced by supply-and-demand relationships, product prices faced pressure, leading to a decline in gross margin.

In 2025, Boya Bio’s net operating cash flow decreased steadily from approximately 642 million yuan in 2023 to 61.1627 million yuan, leaving it with almost only small change.

Boya Bio’s management admitted that from 2022 to 2024, the national plasma collection volume grew relatively fast, with a compound annual growth rate of nearly 8%. However, on the demand side, growth was slower due to constraints from medical policy reforms such as DRG/DIP, reimbursement expenditure controls, and consumption downgrades, which increased overall industry inventory. Core products in the blood products industry saw overall prices decline in 2025 compared with 2024. Prices are adjusted overall based on supply-and-demand relations in the market. In 2026, product prices will still be affected by supply-and-demand relations, so there is still some pressure. “Inventories for various product types are relatively reasonable. Specifically, inventories for intravenous immunoglobulin (静丙) are under more pressure; coagulation factor products are tight due to the impact of production scheduling; while supply and demand for albumin are fairly balanced.”

A research report published by Huachuang Securities noted that a mismatch between supply and demand is the essence behind the performance pressure on blood products companies. “Benefiting from the recovery of plasma collection activities after the pandemic and an increase in industry willingness to collect plasma, domestic plasma collection volumes maintained high-speed growth in 2023—2024. Since blood products have a production cycle of 9 to 12 months, the high plasma collection growth in 2023 and the first half of 2024 collectively translated into blood products supply from the second half of 2024 to the present. As post-pandemic demand is absorbed and channel replenishment work is completed, the industry’s clear oversupply becomes evident. Product price cuts have caused companies’ performance to start facing pressure; fundamentally, it is still a mismatch in supply and demand,” Huachuang Securities’ analysis said. The research firm expects that starting in 2026, adjustments as supply tightens will gradually transmit to the market. On the demand side, albumin demand shows a clear rigid characteristic, and sales of intravenous immunoglobulin are expected to gradually stabilize.

A massive amount of information and precise analysis—available on the Sina Finance app