Haili Bio adjusts Ruicheng Bio-Technology valuation amid market shifts

Shanghai Haili Bio-Technology (Haili Bio) announced adjustments to the valuation and performance commitments for Ruicheng Bio-Technology, a company in which Haili Bio holds a 55% stake, following a regulatory inquiry from the Shanghai Stock Exchange regarding its 2025 semi-annual report. The acquisition price for Ruicheng Bio-Technology, previously valued at 935 million yuan, has been adjusted due to significant price declines in bone repair materials and intensified competition.

Ruicheng Bio-Technology's 2025 first-half revenue was 78 million yuan, falling short of the 320 million yuan full-year forecast in the original appraisal. The company's management is addressing these challenges through a "volume-for-price" strategy, leveraging its new production base to increase shipping volumes. The updated performance commitments for Ruicheng Bio-Technology are 50 million yuan for 2025 and 58 million yuan for 2026.

Despite the adjustments, Haili Bio maintains that the changes align with accounting standards. However, the company acknowledged that if its income does not exceed 300 million yuan, a substantial goodwill impairment could lead to losses and potential delisting risk.