Adicon Holdings (9860) H1 2025 earnings summary

Executive summary

• H1 revenue fell 13.3% YoY to RMB1,270.6m amid industry price-demand pressure; profit for the period declined 72.4% to RMB28.6m.

• Co-construction and CRO growth, new client wins, and cost initiatives partly cushioned weakness; reagent procurement costs fell ~13% and laboratory productivity improved 11%.

Financial highlights

• Revenue was RMB1,270.6m, down 13.3% YoY; gross profit was RMB454.5m versus RMB559.7m, and gross margin fell to 35.8% from 38.2%.

• Cost of sales declined 9.9% to RMB816.1m; selling and marketing expenses fell 2.8%, while administrative expenses rose 4.7% to fund IT, AI and cloud infrastructure.

• Profit before tax fell to RMB45.5m from RMB133.8m; profit for the period was RMB28.6m versus RMB103.5m.

• Net income attributable to owners was RMB27.3m; basic and diluted EPS were RMB0.04 each, versus RMB0.14 in H1 2024.

Outlook and guidance

• H2 priorities include deeper collaboration with leading medical institutions to scale co-construction projects and rollout of the next-generation LIMS system across subsidiaries.

• Five-year priorities include routine testing and customer retention, clinically focused esoteric testing, CRO growth, stronger co-construction capabilities, and M&A-led integration and synergies.

• Current cash and anticipated operating inflows are expected to cover working capital, operations and financial commitments; financing may be considered if needed.