Novoprotein notes AI-related services account for less than 2% of revenue; shares up 276.53% year to date
Novoprotein issued an announcement on November 1 regarding abnormal fluctuations in its stock trading, stating that the "AI-empowered high-throughput wet-lab experiments and data package services" that have drawn market attention are still in the early stages of market development, and that as of the third quarter of 2026, related revenue accounted for less than 2% of total operating revenue. The company's net profit attributable to shareholders for the first three quarters of 2026 was -47.9034 million yuan, an increased loss of 19.0441 million yuan year-on-year; as of the close on October 30, its price-to-sales ratio (TTM) was 66.18, significantly higher than that of comparable companies in the same industry. From the beginning of the year to October 30, the stock price rose 276.53% cumulatively.
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On the evening of November 1, Novoprotein (SH688137, share price 150.80 yuan, market value 10.544 billion yuan) disclosed the "Announcement on Abnormal Stock Trading Fluctuations and Risk Warning," stating that the company's closing price had cumulatively deviated by more than 30% over three consecutive trading days, triggering the circumstances of abnormal stock trading fluctuations.
The announcement stated that as of the close on October 30, the company's price-to-sales ratio (TTM) was 66.18, "significantly higher than that of comparable companies in the same industry"; net profit attributable to owners of the parent company for the first three quarters of 2026 was -47.9034 million yuan, an increase in loss of 19.0441 million yuan year-on-year; the "high-throughput wet-lab and data package services empowering AI (artificial intelligence)," which has drawn market attention, remains "in the early stage of market expansion," and as of the third quarter, revenue from the related business accounted for less than 2% of total operating revenue.
Price-to-sales ratio significantly higher than that of comparable companies in the same industry
The announcement stated that the company's stock closing price cumulatively deviated by more than 30% over three consecutive trading days on October 28, October 29, and October 30, 2026. In accordance with the relevant provisions of the "Shanghai Stock Exchange Trading Rules" and the "Shanghai Stock Exchange STAR Market Real-Time Monitoring Rules for Abnormal Trading in Stocks," this constitutes a circumstance of abnormal stock trading fluctuations.
In response to the unusual movements, the company conducted verification from four aspects. Regarding production and operations, "upon self-inspection by the company, the company's current production and operating activities are normal, with no major changes. No major adjustments have occurred in the market environment or industry policies, no significant fluctuations have occurred in production costs and sales, and internal production and operating order is normal." Regarding major matters, upon self-inspection and verification by letter to the controlling shareholder and actual controller, as of the date of the announcement disclosure, "there are no major matters affecting the abnormal fluctuations in the company's stock trading price," including but not limited to major asset restructuring, issuance of shares, acquisition of the listed company, debt restructuring, asset divestiture, and asset injection. Regarding media reports and market rumors, the company stated that "no media reports or market rumors requiring clarification or response have been found." Regarding price-sensitive information, the company stated that it found no purchases or sales of the company's stock by the controlling shareholder and actual controller, directors, and senior management during this period of unusual movements.
The announcement contained a total of six risk warnings, three of which are directly related to valuation and performance. The first is performance: "The company achieved net profit attributable to owners of the parent company of -47.9034 million yuan in the first three quarters of 2026, an increase in loss of 19.0441 million yuan year-on-year. The company's operating scale is relatively small, and there is a risk of loss." The second is the AI-related business: "The company's high-throughput wet-lab and data package services empowering AI are still in the early stage of market expansion. As of the third quarter of 2026, revenue from the related business accounted for less than 2% of the company's total operating revenue." The announcement also warned that "given that the application of AI in the pharmaceutical R&D industry is still in its infancy, there are risks such as rapid technological iteration, long industry verification cycles, and significant difficulty in commercialization, and there is major uncertainty regarding the company's future realization of related revenue and profits." The third is valuation: "As of the close on October 30, 2026, the company's price-to-sales ratio (TTM) was 66.18, significantly higher than that of comparable companies in the same industry."
R&D investment in the first three quarters accounted for 44.65% of revenue
The third-quarter report shows that the company achieved operating revenue of 46.2392 million yuan in the third quarter, a year-on-year increase of 16.29%, and net profit attributable to the parent company of -18.6989 million yuan. Operating revenue for the first three quarters was 125 million yuan, a year-on-year increase of 11.52%; net profit attributable to shareholders of the listed company was -47.9034 million yuan, and net profit after deducting non-recurring gains and losses was -48.7460 million yuan.
Regarding the reasons for the loss, in the section "Circumstances and Reasons for Changes in Major Accounting Data and Financial Indicators," the company explained under two measures: the changes in net profit attributable to the parent company and net profit after deducting non-recurring gains and losses in the third quarter were "mainly due to increases in R&D expenses, asset impairment losses, and deferred income tax expenses"; the changes in the first three quarters were "mainly due to increases in R&D expenses and deferred income tax expenses, as well as a decrease in deposit interest income."
R&D was the most obvious change on the expense side this period. R&D investment in the first three quarters totaled 55.6985 million yuan, a year-on-year increase of 38.39%, accounting for 44.65% of operating revenue, an increase of 8.67 percentage points; R&D investment in the third quarter was 21.6133 million yuan, a year-on-year increase of 52.78%, accounting for 46.74% of revenue. The company stated that the increase was "mainly due to increases in R&D personnel compensation, R&D material requisitions, and depreciation of R&D equipment."
Regarding assets and cash flow, total assets at the end of the reporting period were 2.121 billion yuan, a decrease of 1.42% from the end of the previous year; owners' equity attributable to shareholders of the listed company was 1.982 billion yuan, a decrease of 2.61%; monetary funds were 725 million yuan. Net cash flow from operating activities in the first three quarters was -35.2525 million yuan, compared with -17.4984 million yuan in the same period last year; the company stated that the change was "mainly due to an increase in employee compensation." Net cash flow from investing activities was 72.1588 million yuan, and net cash flow from financing activities was -20.2914 million yuan.
A reporter from National Business Daily noted that Novoprotein's stock price has traced a steep curve during the year. According to Wind market data, the company's closing price on the last trading day of 2025 was 40.05 yuan, and the closing price on October 30, 2026 was 150.80 yuan, a cumulative increase of 276.53% from the beginning of the year to October 30.
(Source: National Business Daily) Body middle Embedded advertisement