ADICON Holdings released its unaudited interim results for the six months ended 30 June 2026, marking a return to top-line growth and noticeable margin recovery after an industry-wide downturn.
Financial highlights • Revenue rose 1.1% year on year to RMB 1.28 billion. • Gross profit increased 7.20% to RMB 487.14 million; gross margin expanded 2.1 percentage points to 37.9%. • Profit for the period advanced 23.40% to RMB 35.27 million; earnings per share (basic and diluted) were RMB 0.04. • Cash and cash equivalents stood at RMB 870.90 million; net cash position was RMB 309.00 million. • Negative operating cash flow of RMB 142.69 million reflected seasonal collection patterns; trade-receivable days lengthened to 251 from 239 in 2025. • Capex reached RMB 62.70 million, with outstanding capital commitments of RMB 11.36 million. • The Board declared no interim dividend.
Business performance • Co-construction services revenue grew 17.4%, buoyed by new strategic alliances with Mindray Medical, Jointown, WEGO Shingene and Haier Biomedical. • CRO revenue surged 34.9%, supported by new oncology trial work, including collaboration with Gan & Lee Pharmaceuticals on diabetes drug studies. • Esoteric testing revenue advanced 11.1%, led by a 28.2% rise in hematology after integration of Yuande Youqin. • Routine testing was broadly flat (+0.1%), with rising volumes offsetting price pressure from DRG/DIP reforms. • Health check-up revenue fell 44.7% amid sector-wide weakness. • The Group secured 516 tender wins (+26.5%) worth RMB 690 million, doubling the prior-year value. • Revenue from public tertiary hospitals increased 15.1%, and pharmaceutical-sector sales also grew.
Operational efficiencies • Reagent procurement costs declined 12%; logistics cost per test fell 9%; laboratory productivity improved 15%. • Inventory days reduced to 27 from 28; trade-payable days eased to 151 from 154. • AI initiatives progressed with roll-outs in pathology, LIMS optimisation and strategic tech partnerships with Digital China and Huawei Cloud.
Strategic roadmap ADICON initiated a five-year plan centred on three growth engines: 1) Organic: deepen routine testing, expand four key esoteric lines (hematology, oncology, infectious diseases, genetics), scale co-construction under China’s “Thousand-County Initiative”, and grow CRO oncology services. 2) Inorganic: pursue targeted M&A in high-barrier esoteric segments, enhance CRO central-lab capabilities and integrate newly acquired businesses for synergies. 3) AI/ToC Enablement: build an intelligent ecosystem spanning hospital and consumer diagnostics, leveraging two decades of data assets for AI-driven services.
Regulatory and market environment The Group expects rising ICL penetration as DRG/DIP payment reform converts hospital labs into cost centres and anti-corruption scrutiny favours compliant market leaders. Expansion of LDT pilots and supportive healthcare policies are viewed as additional demand catalysts.
Governance and capital ADICON maintained full compliance with Hong Kong’s Corporate Governance Code and Model Code. Independent auditor Ernst & Young reviewed the interim results; no qualified opinion was issued. Total share capital remained at 727.26 million shares; treasury shares stood at 11.79 million following buybacks.
Outlook Management projects continued recovery across core businesses, supported by volume growth, disciplined cost control and selective acquisitions. The company targets a “meaningful step-up in scale and earnings quality” by 2031 under its new five-year strategy.