Mega Genomics (6667) H1 2025 earnings summary

Executive summary

• H1 2025 revenue was RMB81.281m, down 24.2% YoY, and net profit was RMB27.261m, down 26.3%, as a sales strategy adjustment temporarily reduced revenue.

• Gross margin rose 9.1 percentage points to 74.0%; cancer-screening revenue grew 85.7% YoY.

• More than 24m genetic tests had been performed cumulatively by 30 June 2025, with services reaching healthcare institutions in over 340 Chinese cities.

• Trading had been suspended since 1 April 2025 pending fulfillment of Stock Exchange resumption guidance on audit issues, management integrity, internal controls, reporting and continued operations.

Financial highlights

• Gross profit fell 13.6% YoY to RMB60.140m from RMB69.618m; gross margin rose to 74.0%.

• Profit before tax was RMB33.142m, down 23.0%; basic and diluted EPS were RMB0.13, versus RMB0.18 in H1 2024.

• Cost of sales fell 43.9% to RMB21.141m and selling and distribution expenses declined 23.4% to RMB10.426m; administrative expenses rose 2.7% to RMB17.987m.

• Other income and gains rose 22.5% to RMB4.210m, mainly on higher interest income; net impairment expense on trade receivables was RMB1.263m, versus a RMB2.686m reversal in H1 2024.

Outlook and guidance

• Plans include expanding consumer testing through new products, industry-standard development, expert partnerships and broader education of healthcare institutions.

• Cancer-screening priorities include digestive-tract blood-methylation products, greater automation and cost efficiency, and products for additional cancer types, including esophageal, endometrial and bladder cancers.

• Plans call for strengthening R&D, recruiting specialists, developing low-cost home-testing products, building a manufacturing laboratory and considering selective acquisitions.

• Colorectal and gastric cancer qPCR kits are in IVD registration and filing, with certificates expected by 2027; Alzheimer's RT-qPCR screening kits are also expected to seek registration by 2027.