By Fineline Cube 
China‑based HitGen Inc. (SHA: 688222) released its interim report for the first half of 2026, reporting revenue of RMB 346 million, a year‑on‑year increase of 52.41%, and recurring net profit attributable to shareholders of RMB 76.98 million, up 42.80% year on year. Growth was led by the company’s core DEL (DNA‑encoded library) segment — boosted by approximately RMB 37 million in IP transfer and milestone fees — while the OBT (oligonucleotide‑based therapeutics) business nearly doubled, underscoring broad‑based momentum across HitGen’s drug discovery technology platforms.
Financial Highlights – 1H 2026
| Metric | 1H 2026 | YoY Change |
|---|---|---|
| Total Revenue | RMB 346 million | +52.41% |
| Recurring Net Profit (attributable to shareholders) | RMB 76.98 million | +42.80% |
| R&D Investment | RMB 44.90 million | +55.85% |
Revenue by Segment
| Segment | Revenue (1H 2026) | YoY Change |
|---|---|---|
| DEL (DNA‑encoded library) | RMB 166 million | +62.14% |
| FBDD/SBDD (fragment‑based / structure‑based drug design) | RMB 85.09 million | +30.43% |
| OBT (oligonucleotide‑based therapeutics) | RMB 54.03 million | +94.03% |
| TPD (targeted protein degradation) | RMB 8.46 million | +12.25% |
| DataSer (data services) | RMB 15.44 million | — |
Segment Highlights & Growth Drivers
- DEL – Core Engine: The flagship DEL segment reached RMB 166 million in revenue, up 62.14% year on year, and generated IP transfer and milestone fees totaling approximately RMB 37 million during the period — a high‑margin contributor to overall profit growth and evidence of HitGen’s library assets translating into downstream commercial value
- OBT – Fastest Grower: Oligonucleotide‑based therapeutics revenue nearly doubled (+94.03%), reflecting rising global demand for oligonucleotide discovery and development services
- FBDD/SBDD – Steady Expansion: The fragment‑based and structure‑based drug design platform grew 30.43%, reinforcing HitGen’s integrated hit‑to‑lead offering
- TPD – Emerging Base: Targeted protein degradation revenue grew 12.25%, at an early stage of scaling
- DataSer – New Revenue Stream: Data services contributed RMB 15.44 million, adding diversification to the revenue mix
- R&D Commitment: R&D investment rose 55.85% to RMB 44.90 million, sustaining platform expansion ahead of revenue growth
Market Impact & Outlook
- Platform Monetization Validated: The combination of 52% top‑line growth, 43% recurring profit growth, and RMB 37 million in IP transfer/milestone fees demonstrates HitGen’s ability to convert discovery technology into both fee‑for‑service and asset‑based economics.
- DEL Franchise Strength: As the world’s largest DEL ecosystem, HitGen’s 62% segment growth and milestone harvests reinforce its moat in early‑stage drug discovery partnerships with global pharma.
- OBT as Second Curve: Near‑doubling OBT revenue positions oligonucleotide services as a high‑growth second pillar, aligned with the industry‑wide surge in RNA therapeutics pipelines.
- Watch Items: Conversion of milestone‑earning programs into later‑stage royalties, OBT capacity expansion and order book, and whether accelerated R&D spending sustains segment growth into the second half.
Forward‑Looking Statements – This brief is for informational purposes only and does not constitute investment advice. Interim results are as reported by the Company; statements regarding future business development and financial performance are forward‑looking and subject to risks and uncertainties; actual results may differ materially. Refer to official announcements and filings from HitGen Inc. for authoritative details.-Fineline Info & Tech