On August 6, 2026, after market close, BenQ Holding (02581.HK) released its first half-year report since going public, revealing disappointing data. First-half revenue totaled 1.344 billion yuan, a slight 2.4% year-on-year increase; net profit was only 20.81 million yuan, a sharp 57.3% decline; gross margin fell from 15.9% to 13.4%; and operating cash flow net outflow expanded year-on-year. Earnings per share amounted to just 0.07 yuan, down 65% from 0.20 yuan in the same period last year. These results align with the trend of a 12.8% decline in full-year net profit for 2025, but the rate of decline has significantly accelerated. The scenario of revenue growth without profit increase has turned into a rapid descent characterized by slight revenue growth and profit halving.
Revenue stagnates while costs accelerate. BenQ Holding currently operates two hospitals: Nanjing BenQ Hospital (Grade 3A) and Suzhou BenQ Hospital (Grade 3). In the first half of 2026, outpatient visits reached 1.09 million, a 3.1% increase year-on-year, and inpatient admissions totaled 43,500, a 2.5% increase. The slight growth in service volume barely supported a marginal revenue increase. However, cost growth far outpaced revenue. Operating costs rose 5.4% year-on-year to 1.163 billion yuan. Employee costs increased by 9.6 million yuan, driven by an increase in doctors from 1,012 to 1,077 and other medical professionals from 1,884 to 1,925. Depreciation and amortization expenses rose by 9.7 million yuan after the second phase of Nanjing BenQ Hospital began operations, and maintenance and miscellaneous procurement costs increased by 2.6 million yuan.
Another major drain on the profit statement comes from associates. The company's share of losses from associates surged from 309,000 yuan in the first half of 2025 to 12.34 million yuan in the first half of 2026. Guigang Donghui Medical continued to suffer losses due to reduced service fees. Nanjing Yinsha Health turned from profit to loss as depreciation began on newly completed construction projects. More concerning for the market is the 68.2 million yuan in accounts receivable from Nanjing Yinsha Health—originally promised to be settled by the second quarter of 2026—has not been collected. The company now expects repayment to be delayed until 2027. Additionally, the bed occupancy rate at the two hospitals fell from 97.1% to 93.2%, indicating increased idle capacity. The net profit margin dropped from 3.7% to 1.5%, crossing a critical threshold. A prepayment of 99 million yuan for the first proton therapy equipment, along with the need for substantial future capital expenditures, further pressures cash flow.
Market value evaporates over 70% in less than 8 months post-IPO. The stock price performance is even more severe than the financial results. BenQ Holding listed on December 22, 2025, at an IPO price of 9.34 Hong Kong dollars. It broke below the issue price immediately upon opening, trading at 6.5 Hong Kong dollars, and eventually closed at 4.72 Hong Kong dollars, a 49.46% plunge on its first day. The stock has continued to decline, closing at 2.785 Hong Kong dollars as of August 7, representing a drop of over 70% from the IPO price and a total market capitalization of less than 900 million Hong Kong dollars. Liquidity has nearly dried up. In July, the company's average daily turnover rate was less than 0.02%, with an average daily trading volume of less than 150,000 Hong Kong dollars. On August 7, the company's trading volume was even less than 10,000 Hong Kong dollars. On June 22, 2026, a lock-up period expired for 33.252 million cornerstone investor shares, accounting for 49.63% of the total offering. Furthermore, pre-IPO investors were not subject to lock-up restrictions, with some shareholders having invested as early as 2009, giving them substantial paper profits even at the IPO price. Unrestricted selling by these early shareholders has been the core driver of the stock's continuous decline.
In conclusion, BenQ Holding's mid-year report presents a harsh reality to investors: a regional private hospital in a non-hot sector was given a valuation far above the industry average at the time of its IPO. Post-listing, it faces a dual negative spiral of deteriorating performance and valuation compression. With revenue stagnant, costs accelerating, associates continuously bleeding cash, accounts receivable repeatedly overdue, and core operating metrics deteriorating across the board, the market's only response has been a 70% stock price decline and near-zero liquidity, resulting in a "zombie stock" outcome as investors vote with their feet.
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