Hangzhou Diagens Biotechnology Co Ltd (2526) investor relations material

Executive summary

• Revenue for H1 2026 reached RMB108.7 million, up 21.0% year-over-year, driven by rapid growth in model services, which now comprise 87.1% of total revenue.

• Gross profit increased 14.0% to RMB80.5 million, with a gross margin of 74.1%.

• Net loss widened to RMB55.9 million from RMB1.3 million a year earlier, mainly due to a 67.4% surge in R&D costs and higher administrative and selling expenses.

• The company completed its IPO in March 2026, raising up to HK$791.9 million, significantly boosting cash reserves.

Financial highlights

• Model services revenue soared 101.1% year-over-year to RMB94.5 million, becoming the main growth engine.

• Revenue from medical imaging software and devices dropped 71.8% to RMB11.0 million due to delayed tenders and market factors.

• R&D expenses rose to RMB64.1 million, reflecting increased investment in computing power and technical staff.

• Administrative expenses increased to RMB37.8 million, and selling/distribution expenses to RMB15.9 million, both up due to listing and labor costs.

• Cash and cash equivalents surged to RMB654.6 million as of June 30, 2026, mainly from IPO proceeds.

Outlook and guidance

• Focus remains on enhancing the iMedImage® foundation model, expanding the model production platform, and accelerating commercialization of regulatory-grade products.

• Plans include refining standard products, improving delivery efficiency, and leveraging iMedLoop™ for data and model production.

• Commercialization of Al AutoVision® to be accelerated, with ongoing market education, hospital access, and overseas registration.

• Continued emphasis on R&D efficiency, gross margin structure, and cash flow management.

• Caution is advised due to uncertainties in technology, regulatory review, hospital procurement cycles, and market acceptance.