China Resources Medical Holdings Company Limited (CR Medical) released its 2026 interim report, detailing a resilient first-half performance amid ongoing reforms in mainland China’s healthcare sector.
Revenue dipped 1.0% year on year to RMB 4.48 billion, weighed by a 39.2% slide in “Other Business” turnover to RMB 161.89 million following the scaling back of invest-operate-transfer (IOT) projects. Core Hospital Business revenue edged up 1.4% to RMB 4.32 billion, supported by a 5.2% rise in out-patient and emergency visits (5.37 million) and a 0.3% uptick in in-patient admissions (0.27 million).
Cost controls and efficiency gains lifted group gross profit 15.1% to RMB 819.89 million, expanding the overall gross margin to 18.3% from 15.8% a year earlier. Hospital Business gross margin improved to 18.5% (2025H1: 15.7%), driving a 42.2% surge in segment profit to RMB 362.27 million.
Group net profit fell 14.7% to RMB 319.39 million, primarily due to the absence of a one-off RMB 210 million compensation booked in 2025H1. Excluding that item and related tax, underlying net profit rose 45.6%. Finance costs dropped 39.4% to RMB 16.56 million after debt structure adjustments.
As of 30 June 2026, total assets stood at RMB 12.99 billion, with cash and cash equivalents plus restricted deposits of RMB 1.18 billion. Interest-bearing bank borrowings were RMB 702 million, giving a gearing ratio of 5.9% (31 December 2025: 5.1%). The company held unused banking facilities equivalent to approximately RMB 6.68 billion.
The board declared an interim dividend of RMB 0.05 per share (HK$0.0578), payable on 26 October 2026 to shareholders on record as of 18 September 2026.
Operationally, CR Medical managed 90 medical institutions across 10 provinces and municipalities, including 12 Grade III hospitals. Strategic initiatives in the first half centered on cost optimisation, digital transformation, specialty discipline development, and expansion of intelligent healthcare and derivative health businesses.
Post-period, CR Medical terminated two IOT agreements with Mentougou district hospitals effective 1 July 2026 and received RMB 4.36 million in outstanding funds by 30 July 2026. The Beijing Second Intermediate People’s Court also issued a final ruling on 11 September 2026 in favour of CR Medical, ordering counter-parties in the Yan Hua IOT dispute to pay a combined RMB 349.84 million in repayments, damages and interest.
The company states that its “15th Five-Year” strategy aligns with national healthcare planning, focusing on strengthening core hospital operations, advancing intelligent healthcare services, and developing derivative health businesses while maintaining prudent treasury management and sufficient liquidity.
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