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

Jingjing News reporter Chen Ting, Zhao Yi, Shenzhen

“Past year has been an extraordinary one for the blood products industry. Whether in the macroeconomic environment or industry tracks, it has gone through a ‘stress test.’” Recently, the management of Bio-Thera Solutions (300294.SZ) admitted this at a performance briefing.

In 2025, blood-plasma product listed companies collectively turned in a set of results marked by declining performance. Among them, Bio-Thera Solutions (300294.SZ) saw revenue increase without profit growth; net profit fell 71.61% year on year, and net operating cash flow fell by nearly 80% year on year. What significantly affected the company’s profitability was Green Cross (Anhui) Pharmaceutical Sales Co., Ltd. acquired through M&A (hereinafter referred to as “Green-Cross”), as product-market demand weakened, leading to increased impairment losses for intangible assets and goodwill, as well as an increase in amortization of appraisal increment arising from Green Cross (China) Biopharmaceutical Co., Ltd. (hereinafter referred to as “Green-Cross”).

In November 2024, Bio-Thera Solutions completed a premium acquisition of 100% of the equity interests in 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, and Green-Cross). The deal did not include performance-related earn-out or guarantees.

The announcement shows that Green-Cross is mainly engaged in pharmaceutical distribution. In 2025, Bio-Thera Solutions accrued impairment provisions totaling about 308 million yuan for intangible assets and goodwill related to Green-Cross. Among this, the concessionary distribution right for Green-Cross (aesthetic medicine products, hyaluronic acid) was fully impaired, amounting to 198 million yuan.

After recording the impairment, will Green-Cross divest its aesthetic-medicine business? Is there potential for further impairment in the asset group in the future? In this regard, reporters from the China Business Journal contacted and sent a letter to Bio-Thera Solutions. Personnel from the company’s securities department said they had received the interview letter. However, as of the time of publication, the other party had not provided a response.

Net profit down more than 70%

According to the annual report, in 2025 Bio-Thera Solutions’ revenue was about 2.059 billion yuan, up 18.69% year on year; net profit was about 113 million yuan, down 71.61% year on year; and non-recurring profit and loss adjusted net profit was about -7.7575 million yuan, down 102.57% year on year.

Among them, due to the market downturn of hyaluronic acid used in aesthetic-medicine products distributed by Green-Cross, resulting in no economic benefit, Bio-Thera Solutions fully accrued impairment for the intangible asset of the concessionary distribution right for such products. In addition, it accrued goodwill impairment provisions of 110 million yuan for it. In total, this is roughly equivalent to eroding nearly 80% of the company’s net profit for 2024.

The announcement shows that in 2025 Green-Cross had revenue of about 198 million yuan and a loss of about 81.885 million yuan. In fact, in the year it was acquired by Bio-Thera Solutions, Green-Cross was already loss-making.

In July 2024, Bio-Thera Solutions announced its plan to acquire Green Cross Hong Kong, with Green Cross being its blood-products company established within China. Green Cross focuses on R&D, production, and sales of blood products, and also sells imported albumin, recombinant factor VIII, and aesthetic-medicine products in China through Green-Cross as an agent. According to the announcement at the time, Green Cross Hong Kong continued to record losses in the first three quarters of 2022 and 2023. As of the end of September 2023, net profit was -12.1204 million yuan, but the appraisal of the value of all its shareholders’ equity was about 1.677 billion yuan, with an appreciation rate of 159.97%. On this basis, Bio-Thera Solutions’ final acquisition price for Green Cross Hong Kong was 1.82 billion yuan, representing a premium of 8.5% over the target’s appraised value.

In 2024, Green-Cross’s net profit was about -1.8317 million yuan, while Green Cross’s net profit was about 61.1 thousand yuan. As of the end of 2024, in Bio-Thera Solutions’ consolidated financial statements, the book value of goodwill was about 1.099 billion yuan.

In 2025, when conducting goodwill impairment testing, Bio-Thera Solutions allocated the 728 million yuan goodwill formed from acquiring Green Cross Hong Kong to two asset groups—Green Cross and the plasma station, and Green-Cross—amounting to 613 million yuan and 115 million yuan, respectively. Based on the appraisal results, Green Cross did not record goodwill impairment, while the recoverable amount of the Green-Cross asset group was lower than its carrying value, leading to accrual of goodwill impairment provisions of about 110 million yuan.

In fact, over the past two years, Bio-Thera Solutions’ performance has fluctuated significantly due to the impact of goodwill impairment.

According to the annual report, in 2023 Bio-Thera Solutions’ net profit decreased 45.06% year on year to about 237 million yuan, mainly due to accrued goodwill impairment provisions of about 298 million yuan formed from the acquisition of Newbai Pharma. In 2024, the company’s net profit increased 67.18% year on year to about 396 million yuan, mainly because the low base for the same period in 2023 was due to the goodwill impairment and other asset impairment provisions recognized in 2023. However, in 2024, Bio-Thera Solutions still accrued goodwill impairment of 73 million yuan for Newbai Pharma. By that point, all goodwill of 371 million yuan formed from the acquisition of Newbai Pharma had been fully provided for and fully recorded.

The announcement shows that Newbai Pharma was acquired by Bio-Thera Solutions in 2015 and mainly engages in R&D of biochemical drugs. Its main products include compound bone peptide injection, oxytocin injection, sodium heparin injection, and posterior pituitary hormone injection. In 2023, Newbai Pharma’s net profit fell 19.14% year on year, mainly due to a decline in performance caused by a combination of market factors such as centralized procurement policies and adjustments to the National Reimbursement Drug List. In 2024, Newbai Pharma’s net profit fell 21.29% year on year, mainly due to a decline in performance driven by factors including centralized procurement of the oxytocin injection and market-wide factors such as regional alliance centralized procurement. In 2025, Newbai Pharma’s revenue declined 14.25% year on year, and its net profit fell 20.11% year on year.

Blood products core business under pressure

In addition to asset impairment, in 2025 Bio-Thera Solutions also saw its gross margin decline due to factors affecting its blood products business, including centralized procurement, DRG/DIP (payment by diagnosis-related groups/disease categories and value-based points) reform, medical insurance spending controls, and intensified market competition.

Bio-Thera Solutions mainly engages in the R&D, production, and sales of blood products, including three major categories: albumin, immunoglobulins, and coagulation factors. Among these, albumin is the most abundant protein in plasma and is currently the blood product with the largest domestic usage; it is widely used for treatments of tumors, liver diseases, and diabetes. The company’s products cover 10 product types and 31 specifications, including human serum albumin, intravenous human immunoglobulin (pH4), and coagulation factors. By the end of 2025, Bio-Thera Solutions had 21 plasma collection stations, including 20 operating plasma stations; the amount of raw plasma collected was 662.31 tons, up 5.03% year on year.

At a performance briefing, Bio-Thera Solutions’ management stated that in 2025 the company’s overall plasma collection was 662.31 tons, up 31.72 tons year on year, a growth rate of 5.03%; of this, Bio-Thera Solutions’ own stations collected 542.4 tons, up 20.37 tons year on year, a growth rate of 3.97%; and Green-Cross plasma stations collected 119.91 tons, up 11.35 tons year on year, a growth rate of 10.46%.

In 2025, Bio-Thera Solutions’ blood products business revenue was about 1.672 billion yuan, accounting for 81.21% of total revenue; gross margin was 53.63%, down 11.48% year on year. During the reporting period, the sales volume of the blood products business was about 4.7375 million bottles, up 22.64% year on year; production volume rose 38.14% year on year to about 5.2911 million bottles; and inventory rose 65.41% year on year to about 1.3661 million bottles.

During the reporting period, Bio-Thera Solutions’ consolidated-level gross margin was 49.9%, down 14.8% year on year. The main reasons were that within the consolidation scope, Green Cross had a smaller variety of product types and lower product recovery rates, which affected the overall gross margin level; and in the blood products industry, product prices came under pressure due to supply-demand dynamics, leading to a decline in gross margin.

In 2025, Bio-Thera Solutions’ net operating cash flow continued to fall from about 642 million yuan in 2023 to 61.1627 million yuan, leaving little more than the remainder.

Bio-Thera Solutions’ management acknowledged that from 2022 to 2024, the national plasma collection volume grew relatively quickly, with a compound annual growth rate of nearly 8%. However, growth on the demand side was constrained by the impact of medical policy reforms including DRG/DIP, medical insurance spending controls, and consumption downgrade, resulting in a slower growth pace, as well as an overall increase in inventory in the industry. In 2025, the overall core product prices in the blood products industry were lower than in 2024; prices were adjusted overall based on market supply-demand relationships. In 2026, product prices will still be influenced by supply-demand relationships, meaning there is still some pressure. “Inventories of various products are relatively reasonable. The inventory of IVIG is under slightly more pressure. Inventories of coagulation factor products are tight due to scheduling of production. The supply-demand situation for albumin is relatively balanced.”

A research report released by Huachuang Securities pointed out that the mismatch between supply and demand is the fundamental reason causing performance pressure for 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 volume maintained rapid growth in 2023–2024. Since blood products have a 9–12 month production cycle, the high growth in plasma collection in 2023 through the first half of 2024 collectively translated into blood products supply in the second half of 2024 through today. As pandemic-driven demand is digested and channel inventory replenishment work is completed, the industry’s characteristic of excess supply over demand becomes evident. Price cuts for products have led companies’ performance to start coming under pressure; fundamentally, it is still a mismatch in the supply-demand relationship.” Huachuang Securities said it expects that from 2026 onward, adjustments tightening supply will gradually transmit to the market. On the demand side, the albumin demand has clearly rigid characteristics, and IVIG sales are expected to gradually stabilize.

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