Adicon Holdings (9860) H1 2026 earnings summary

Executive summary

• H1 2026 revenue rose 1.1% YoY to RMB1,284.8m; higher testing volumes offset continued, easing pricing pressure.

• Gross margin improved to 37.9%; reported profit rose 23.4% to RMB35.3m, adjusted net profit grew 19.6% and adjusted EBITDA increased 11.7%.

• Double-digit growth in co-construction, CRO and esoteric testing offset near-flat routine testing and a steep health check-up decline.

• A five-year strategy prioritizes organic growth, disciplined M&A and integration, and AI/ToC enablement to build scale and earnings quality by 2031.

Financial highlights

• Revenue was RMB1,284.8m versus RMB1,270.6m YoY; gross profit rose 7.2% to RMB487.1m and gross margin increased to 37.9% from 35.8%.

• Reported profit for the period rose 23.4% to RMB35.3m; profit attributable to owners was RMB32.0m versus RMB27.3m.

• Profit before tax increased to RMB62.6m from RMB45.5m; basic and diluted EPS were RMB0.04 each, unchanged YoY.

• Cost of sales fell 2.3% to RMB797.6m; selling and marketing expenses rose 7.4% to RMB210.9m and administrative expenses rose 15.6% to RMB130.2m.

• Adjusted net profit grew 19.6% and adjusted EBITDA grew 11.7%; other income and gains rose 39.3% to RMB17.6m, including a non-recurring disposal gain and higher government grants.

Outlook and guidance

• Management views 2026 as the start of an ICL industry upturn and aims to return to growth ahead of the sector; no numerical financial guidance was given.

• The five-year plan prioritizes routine testing, four esoteric product lines, CRO, county-level co-construction, selective M&A and post-acquisition integration.

• AI/ToC priorities include smart healthcare services, AI-assisted pathology, digital demand generation and a medical data-asset ecosystem; cost optimization and capacity centralization also remain priorities.