Yunkang Group (2325) H1 2026 earnings summary

Executive summary

• H1 2026 revenue fell 19.3% YoY to RMB252.8m, while net profit recovered to RMB2.5m from a RMB55.4m loss, supported by cost reductions, lower finance costs and a RMB44.2m impairment reversal.

• Revenue remained pressured by centralized procurement, testing-price reductions, hospital cost controls and customer portfolio optimization; medical institution alliances gained revenue share.

Financial highlights

• Revenue was RMB252.8m, down 19.3% YoY; gross profit fell 26.5% to RMB78.2m and gross margin declined to 30.9% from 34.0%.

• Operating profit was RMB12.8m versus a RMB40.3m loss; net profit attributable to owners was RMB2.4m versus a RMB55.3m loss, and EPS was RMB0.004 versus a RMB0.095 loss.

• Selling expenses declined 13.3% to RMB46.1m, administrative expenses fell 23.4% to RMB59.9m, and net finance costs decreased 33.1% to RMB10.1m.

• A RMB44.2m financial-asset impairment reversal followed recovery of RMB62.5m in receivables aged 2+ years; H1 2025 had an RMB8.4m impairment charge.

• Operating cash flow was RMB16.1m versus RMB8.2m; cash and cash equivalents ended at RMB1,459.7m.

Outlook and guidance

• Strategy focuses on deepening medical alliance services, hospital-enterprise collaboration, specialty innovation and converting R&D into commercial and AI-enabled diagnostic products.

• Planned digital development spans sample collection, testing, analysis, interpretation and clinical decision support, targeting improved accuracy, report quality and delivery efficiency.

• Policy support for primary healthcare and county-level medical communities may expand long-term opportunities, while hospital cost controls and testing-price reductions sustain near-term pressure; no numerical financial guidance was stated.