Blue Sail Medical Co Ltd

*ST Mingde disclosed its 2026 interim report on the evening of August 27. In the first half, it achieved operating revenue of 141 million yuan, up 1.54% year on year, while net profit attributable to the parent company was a loss of 21.8676 million yuan. Pressure on the profit side mainly came from reduced government subsidies, higher credit impairment losses, and lower wealth-management income. Together, these three items reduced total profit by more than 40 million yuan year on year. Excluding those effects, the company would have posted a profit of 16 million to 24 million yuan in the first half. The company focuses on critical care and infectious disease diagnostics, and its product portfolio continues to expand. By the end of June, it had obtained 260 product registration certificates and 77 EU CE certifications. Overseas revenue reached 33.512 million yuan, up 40.16% year on year, with its share of revenue rising to 23.70%. On the external growth front, the company acquired 100% equity in Bikar for 190 million yuan, and the industrial and commercial registration change was completed on August 14. Bikar's revenue and profit have not yet been included in this interim report, but the counterparty Blue Sail Medical has committed that Bikar's cumulative net profit from 2026 to 2028 will be no less than 65 million yuan. As the deal closes, the company's business extends from in-hospital diagnostics to out-of-hospital protection and emergency care, and the incremental performance is expected to be gradually released.

Blue Sail Medical released its 2026 half-year report, showing operating revenue of 3.71 billion yuan, up 33.3 percent year on year. Net profit attributable to the parent swung from a loss of 135 million yuan in the same period last year to a profit of 95.68 million yuan. Net profit attributable to the parent after deducting non-recurring items swung from a loss of 210 million yuan a year earlier to a profit of 79.72 million yuan. Operating cash flow was 421 million yuan, up 25.5 percent year on year. In the second quarter, operating revenue was 2.08 billion yuan, up 59.7 percent year on year, and net profit attributable to the parent swung from a loss of 212 million yuan a year earlier to a profit of 94.72 million yuan. Around 60 percent of revenue in the company's cardiovascular and cerebrovascular business came from overseas operations, up about 25 percent year on year, while revenue in the health protection business rose about 36 percent from a year earlier and successfully returned to profitability.

ST Mingde announced that the company has completed the asset transfer procedures for its acquisition of 100% equity in Wuhan Bikaier Rescue Products Co., Ltd. held by Blue Sail Medical, through cash payment. On August 14, 2026, Bikaier obtained a new business license issued by the Administrative Approval Bureau of Qiaokou District, Wuhan, and the 100% equity in Bikaier held by Blue Sail Medical has been fully transferred and registered under the company's name. As of the announcement date, the company has completed payment of the entire transaction consideration of 190 million yuan in accordance with the Asset Purchase Agreement, with the funds sourced from the company's own capital and part of the proceeds raised from its 2021 non-public offering of shares.

On July 29, shares of disposable glove producers Zhonghong Medical, Intco Medical, and Blue Sail Medical rose across the board, with Zhonghong Medical hitting its daily limit up. The previous evening, Zhonghong Medical issued a profit forecast, estimating net profit attributable to shareholders of the listed company at 140 million to 210 million yuan for the first half of this year, a year-on-year increase of 23.38 to 35.57 times, mainly driven by higher selling prices for health protection gloves, improved product gross margins, and stronger cost control. Blue Sail Medical had earlier forecast first-half net profit of approximately 90 million to 110 million yuan, swinging from a loss to a profit year-on-year, with its health protection division achieving net profit of 250 million to 300 million yuan and operating revenue up about 36 percent year-on-year. This year, rising international oil prices have pushed up raw material costs for nitrile gloves, but Chinese manufacturers, with their complete petrochemical supply chains, have achieved raw material self-sufficiency and a significant cost advantage, allowing them to capture excess profits during the industry's price hike cycle.

Blue Sail Medical has released its 2026 half-year performance forecast, expecting to achieve a net profit attributable to shareholders of 90 million to 110 million yuan for the first half, reversing a loss from the same period last year. All of the company's business divisions were profitable in the first half, with total attributable net profit reaching approximately 250 million yuan. However, at the headquarters level, the company bore around 50 million yuan in repurchase interest for the Series A financing of its cardiovascular and cerebrovascular division, approximately 24 million yuan in interest on matured Blue Sail convertible bonds, as well as foreign exchange losses and other expenses, resulting in a combined negative impact on attributable net profit of about 150 million yuan.

*ST Mingde has responded to its plan to acquire a 100% stake in Wuhan Bicare for 190 million yuan, stating the move is based on long-term strategic considerations aimed at enhancing the company's comprehensive competitiveness and sustained profitability. The company announced on June 30 that it intends to purchase all of Bicare's equity held by Blue Sail Medical with cash, a transaction that constitutes a major asset restructuring. Blue Sail Medical has committed that Bicare's cumulative net profit from 2026 to 2028 will be no less than 65 million yuan. *ST Mingde was previously placed under delisting risk warning after its 2025 financial data triggered the relevant indicators. The company stated that after the acquisition, total assets, operating revenue, net profit attributable to the parent company, and basic earnings per share will all increase, helping to improve its financial position. The appraisal agency, using December 31, 2025 as the base date, applied the income approach and arrived at an appraised value of 190.6 million yuan for all of Bicare's shareholders' equity, a 59.62% premium over the book value of 119 million yuan. Chairwoman Chen Lili said the acquisition will allow the company to enter the industrial emergency rescue and supermarket sectors, broaden overseas channels, build a coordinated ecosystem of diagnosis, protection, and treatment, and inject high-quality assets to strengthen sustained profitability.