Bayzed Health Swings to H1 2026 Profit as Margin-Led Strategy Lifts Earnings

Bulletin Express09-29 17:10

Bayzed Health Group Inc. released its 2026 interim results, reporting a turnaround to profitability on modest top-line growth and stronger operating margins.

Revenue for the six months to 30 June 2026 edged up 1.70 % year on year to RMB 584.45 million. Gross profit improved 2.20 % to RMB 108.59 million, lifting the gross margin 0.1 percentage point to 18.6 %. The company booked a net profit of RMB 18.47 million, reversing a RMB 20.26 million loss a year earlier. Adjusted profit, which strips out last year’s listing expenses, increased 96.80 % to RMB 18.50 million. EBITDA jumped 86.00 % to RMB 81.05 million, while adjusted EBITDA gained 10.60 %.

Hospital operations remained the growth engine, contributing RMB 465.39 million—79.60 % of group revenue—and delivering an 18.1 % gross margin, up from 16.7 % a year ago. Oncology-related treatments accounted for 48.4 % of hospital sales. Managed hospitals generated RMB 15.58 million in fees, down 14.8 % after regional medical insurance changes, while the third-party supply business declined 3.6 % to RMB 102.95 million amid national procurement-driven price cuts.

Operationally, self-owned hospitals logged 380,000 outpatient and emergency visits, up 5.5 %, and performed 6,859 surgeries, with high-complexity Grade III/IV procedures rising 30.1 % to 3,767. Managed hospitals performed 3,174 surgeries, of which 67 % were Grade III/IV.

Total assets stood at RMB 2.53 billion at 30 June 2026. The liabilities-to-assets ratio eased to 35.7 % from 36.6 % at end-2025. Cash and cash equivalents were RMB 556.28 million, while interest-bearing borrowings totalled RMB 404.75 million. Net cash from operations reached RMB 129.43 million; capital expenditure increased 41.0 % to RMB 11.00 million, mainly for medical equipment.

Bayzed Health had deployed HKD 61.90 million of the HKD 473.10 million IPO proceeds by period-end, leaving HKD 411.20 million earmarked for oncology service expansion, hospital acquisitions, IT upgrades and working capital.

No interim dividend was declared. Governance changes included the appointment of Mr Lyu Chao as executive director and Dr Chen Haoyang’s elevation to board chairman, while Mr Tsang Chun Ho replaced Ms Fong Christine Haiman as joint company secretary and authorised representative.

Management reaffirmed its “Eight-Ring” full-cycle oncology strategy, targeting growth in prevention, screening, treatment and rehabilitation, augmented by ongoing digital infrastructure upgrades and selective M&A to expand its hospital network.

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