Ginkay Biotech's Non-Fluorine-Containing CDMO Business Sees Sharp Gross Margin Improvement, with SNAC Business as Core Growth Driver

Based on collected public information, I provide you with a detailed analysis of the gross margin changes in Ginkay Biotech’s non-fluorine-containing CDMO business.

According to public information [1], the gross margin of Ginkay Biotech’s non-fluorine-containing CDMO business changed significantly in H1 2025:

Such a gross margin increase is extremely rare in the CDMO industry, indicating a fundamental change in the company’s business structure [1].

SNAC (N-[(8-hydroxy-1-methylimidazo[1,2-α]naphthalen-2-yl)carbonyl]-L-phenylalanine methyl ester) is an absorption enhancer, and a key excipient component of Novo Nordisk’s oral semaglutide (Rybelsus) [2]:

• Mechanism of Action
  : SNAC can locally increase the pH value in the stomach, protect semaglutide from protease degradation, and promote transcellular transport to enhance absorption [2]
• Dosage
  : Each tablet of oral semaglutide is formulated with 300mg of SNAC [1]

According to public information [1][3], Ginkay Biotech’s SNAC business has experienced rapid growth:

1. SNAC is a non-fluorine-containing product
   : The molecular structure of SNAC does not contain fluorine, so it is classified under the non-fluorine-containing CDMO business [1]

2. High barriers lead to high gross margins
   :
   • Ginkay Biotech has built
     the first domestic commercial SNAC production line meeting FDA cGMP standards
     [1]
   • One of the very few enterprises globally with
     stable ton-level supply capacity
     (the other is Novo Nordisk’s in-house production system) [1]
   • Production capacity is approx. 1,200 m³, with new capacity to be put into operation in 2025-2026 [1]

3. Scale effect becomes evident
   :
   • Non-fluorine-containing CDMO revenue reached RMB 164 million in H1 2025, representing YoY growth of 88.76% [1]
   • The increased proportion of high-value-added SNAC products has significantly lifted the overall gross margin

• The
  only domestic
  enterprise that explicitly states itself as a supplier of SNAC intermediates to Novo Nordisk [1]
• One of the very few enterprises globally with GMP-compliant ton-level supply capacity [1]
• The fund-raising project is expected to be put into operation in mid-2026, which will significantly increase production capacity [1]

1. Direct contribution
   : The volume growth of the SNAC business is directly reflected in the non-fluorine-containing CDMO revenue increasing from RMB 145 million in full-year 2024 to RMB 164 million in H1 2025 (only half a year)

2. Structural optimization
   : The increased proportion of high-gross-margin, high-barrier SNAC products has lifted the overall gross margin from 29.1% to 67.63%

3. Volume and price growth
   : As oral semaglutide for the obesity indication gains traction in the US, SNAC demand has entered a period of rapid growth, and Ginkay Biotech, as a core supplier, will continue to benefit

According to analysts’ forecasts, the company’s net profit is expected to reach RMB 130 million in 2025 and nearly RMB 200 million in 2026 [1], with the SNAC business being the main growth driver.

[1] Pedaily - Oral GLP-1 Booms

[2] 21st Century Business Herald - Star Weight-Loss Drug Hits RMB 10 Billion in Annual Sales, Key Intermediate Supplier Ginkay Biotech Enters Accelerated Track

[3] Sina Finance - Ginkay Biotech 2025 Half-Year Report