Yunkang Group reported a notable earnings turnaround for the six months ended 30 June 2026, posting a net profit attributable to shareholders of RMB 2.44 million versus a RMB 55.34 million loss in the prior-year period.
Revenue fell 19.3% year on year to RMB 252.76 million, largely due to continued price pressure from hospital procurement reforms and intensified industry competition. Gross profit declined 26.5% to RMB 78.21 million, and the gross margin narrowed to 30.9% from 34.0%.
Profitability improved on the back of: • A 23.4% reduction in administrative expenses to RMB 59.92 million and a 13.3% cut in selling expenses to RMB 46.06 million, reflecting ongoing cost-control efforts. • A RMB 44.23 million reversal of impairment on financial assets, compared with a RMB 8.35 million charge a year earlier. • Finance costs dropped 33.1% to RMB 10.13 million following balance-sheet optimisation.
Segment performance • Diagnostic testing services for medical institution alliances remained the core business, generating revenue of RMB 157.60 million (down 12.6% year on year) and accounting for 62.4% of total turnover, up 4.8 percentage points. • Diagnostic outsourcing services contributed RMB 81.68 million, a 31.1% decline, as routine test prices continued to fall. • Testing services for non-medical institutions edged down 6.3% to RMB 13.48 million.
Cash and balance sheet The group held cash and cash equivalents of RMB 1.46 billion at period-end, versus RMB 1.52 billion at 31 December 2025, after spending RMB 51.98 million on capital expenditure and RMB 67.29 million of net investing cash outflows. Total borrowings were broadly stable at RMB 683.64 million; the gearing ratio ticked down to 59.2% from 59.6% six months earlier. Net current assets improved to RMB 894.11 million.
Cash generated from operations was RMB 8.19 million compared with RMB 16.12 million in the first half of 2025.
Capital allocation As of 30 June 2026, RMB 366.72 million of the HKD 811.80 million net IPO proceeds remained unutilised, earmarked mainly for expanding the medical-institution alliance network (RMB 184.0 million) and enhancing operational capabilities (RMB 59.4 million).
No interim dividend was declared.
Strategic focus Management reaffirmed its “one horizontal, one vertical” strategy: deepening collaboration with medical-institution alliances, advancing intelligent diagnostic solutions, and pursuing disciplined cost optimisation.
Yunkang Group’s interim results demonstrate early traction from these measures, with the company returning to the black despite sector-wide pricing pressures and regulatory reforms.
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