Concord Healthcare Group (2453) investor relations material

Executive summary

• H1 2026 revenue rose 34.2% YoY to RMB269.6m; gross profit reached RMB73.0m and net loss narrowed 50.4% to RMB99.2m.

• Hospital revenue grew 73.4% to RMB265.7m, led by Guangzhou proton therapy; equipment, software and related-services revenue fell 91.6% amid delayed demand.

• Strategy focuses on oncology care, medical AI and overseas expansion, with Indonesia cooperation planned as a cancer-care export model.

Financial highlights

• Revenue increased 34.2% to RMB269.6m; cost of revenue declined 1.9% to RMB196.7m.

• Gross profit rose to RMB73.0m from RMB0.4m, and gross margin improved to 27.1% from 0.2%.

• Net loss narrowed to RMB99.2m from RMB200.0m; loss attributable to owners was RMB77.3m, and loss before tax was RMB101.5m.

• Finance costs declined to RMB59.5m from RMB66.3m; other income and net gains were RMB10.7m, including an RMB8.0m convertible-bond fair-value gain.

• Operating cash flow was RMB50.3m generated versus RMB60.4m used; investing and financing cash outflows were RMB108.2m and RMB99.3m.

Outlook and guidance

• Strategy prioritizes scaling proton therapy, specialized oncology care, cancer-focused AI commercialization and cross-border medical services.

• Indonesia is the starting point for Southeast Asian expansion, with plans for cancer services, local training and cross-border referral channels.

• Going-concern forecasts through June 30, 2027 assume proton-center growth, banking-facility access and cost controls; unused credit lines were RMB577.5m at June 30, 2026.

• Scaled Guangzhou proton-center operations are expected to provide a stable, recurring and growing revenue stream, subject to execution and financing conditions.