Universal Medical 2026 Interim Results: Profit Edges Higher Despite Revenue Contraction

Genertec Universal Medical Group (“Universal Medical”) reported 2026 interim revenue of RMB 7.10 billion, a drop of 6.30% year-on-year, while profit attributable to shareholders rose 2.80% to RMB 1.26 billion. Return on equity reached 12.87% and return on assets 3.14% for the half-year ended 30 June 2026.

Revenue mix shifted: healthcare services contributed RMB 4.62 billion (-7.0%), accounting for 65.0% of total, and finance operations contributed RMB 2.50 billion (-12.5%) or 35.2%. Gross profit slipped 3.80% to RMB 2.50 billion, with healthcare gross profit at RMB 774.89 million (-1.3%) and finance gross profit at RMB 1.64 billion (-4.6%).

Within healthcare, integrated hospitals generated revenue of RMB 3.84 billion (-9.1%) and profit of RMB 176.52 million (-23.6%). Equipment life-cycle management remained a bright spot: revenue climbed 14.3% to RMB 478.35 million and profit rose 19.8% to RMB 57.69 million.

Finance leasing metrics stayed resilient. Net interest spread improved slightly to 3.85% (2025 interim: 3.82%) as average funding cost fell 39 basis points to 3.01%. The average yield on interest-earning assets decreased 36 basis points to 6.86%. Interest-earning assets expanded 2.1% to RMB 71.06 billion.

Asset quality remained stable: the non-performing asset ratio stood at 1.01% (31 December 2025: 0.99%), while provision coverage remained high at 339.32%.

Total assets increased 3.10% since year-end to RMB 86.92 billion; total equity grew 3.00% to RMB 25.78 billion, translating to net assets per share of RMB 9.91. The debt ratio was essentially unchanged at 70.34%.

Operating cash inflow fell to RMB 281 million (2025 interim: RMB 2.48 billion), primarily due to higher leasing disbursements and lower early settlements. Capital expenditure reached RMB 394 million, focused on hospital upgrades and medical equipment.

Universal Medical paid a final dividend of HK $0.36 per share for FY 2025 (approximately RMB 630 million) on 15 July 2026; no interim dividend was declared.

Management will continue to deepen the transformation of its finance segment, enhance hospital operational efficiency and scale specialised medical services while maintaining prudent risk controls and high provisioning levels.