Sinohealth Technology Holdings (2361) H1 2026 earnings summary

Executive summary

• H1 2026 revenue rose 9.2% YoY to RMB161.5m, while net profit fell 86.1% to RMB3.4m amid higher R&D spending and weaker interest and FX results.

• January’s strategic reset positioned the business around healthcare AI decision-making and intelligent services; AI application revenue increased 295.0% YoY to RMB16.8m.

• Commercial Solutions remained the core revenue base at RMB126.6m; AI agents entered commercial pilots, and Deep Pharma launched on 1 July after the reporting period.

Financial highlights

• Revenue was RMB161.514m versus RMB147.925m YoY; gross profit was RMB90.332m versus RMB82.102m, up 10.0%.

• Operating profit was RMB8.673m versus RMB16.249m; profit before tax was RMB2.018m versus RMB26.155m; net profit was RMB3.395m versus RMB24.511m.

• Basic and diluted EPS was RMB0.01 versus RMB0.06; profit attributable to parent owners was RMB2.6m versus RMB24.7m.

• Cost of sales rose 8.1% to RMB71.2m; R&D costs rose 17.3% to RMB38.8m and selling and distribution expenses rose 22.1% to RMB21.4m.

• Other income and gains declined 22.0% to RMB10.3m, mainly due to lower interest income following USD and RMB rate cuts.

Outlook and guidance

• H2 priorities include improving the Woodpecker and Tiangong No.1 models, scaling the enterprise agent platform and accelerating commercialization across four healthcare value domains.

• Planned development includes MedCraft for medical-engineering translation and MedCortex to connect AI partners, industry software providers and professional services.

• Plans include stronger AI governance, data security, privacy protection, deployment stability and cost optimization; capital expenditure is expected to support growth, funded by cash, operating cash and Global Offering proceeds.