Concord Healthcare Group (2453) H1 2025 earnings summary

Executive summary

• H1 2025 revenue fell 8.3% YoY to RMB200.9m; gross profit turned positive at RMB0.4m and net loss narrowed 1.0% to RMB200.0m.

• Hospital revenue rose 11.2% on proton therapy operations, offset by a 41.3% decline in equipment, software and related-services revenue.

Financial highlights

• Revenue was RMB200.9m versus RMB219.0m; cost of revenue fell 20.9% to RMB200.5m.

• Gross profit was RMB0.4m versus a gross loss of RMB34.5m; gross margin improved to 0.2% from negative 15.8%.

• Net loss was RMB200.0m versus RMB202.0m; loss attributable to owners was RMB176.6m, and loss per share was RMB0.24 versus RMB0.25.

• Adjusted net loss (non-HKFRS), excluding non-recurring listing expenses, was RMB200.0m versus RMB161.1m, up 24.2% YoY.

• Finance costs rose to RMB66.3m from RMB53.7m; other income and net gains fell to RMB1.9m from RMB43.6m, mainly due to a prior-year subsidiary disposal gain.

Outlook and guidance

• H2 priorities include expanding proton therapy awareness and access, strengthening clinical teams and care pathways, and developing international cooperation and medical-service referrals.

• Strategy focuses on the Greater Bay Area and Yangtze River Delta, expanding advanced diagnosis, treatment, rehabilitation and access to innovator drugs.

• Plans include extending proton and oncology AI models and applying AI products through licensing and remote diagnosis; liquidity measures include cost controls and deferring lower-priority capex.