CR Medical issues profit warning: H1 2026 headline profit seen down 18–26%, but underlying earnings surge on stronger hospital performance

Bulletin Express08-12

China Resources Medical Holdings Company Limited (CR Medical) has warned that profit attributable to shareholders for the six months ended 30 June 2026 is expected at RMB252.00 million–RMB278.00 million, a year-on-year decline of approximately 25.9%–18.1%.

The contraction stems largely from the absence of a one-off RMB210.00 million compensation related to the Yan Hua IOT Agreement that was booked in the first half of 2025. After stripping out this non-recurring gain and its associated tax effect, management anticipates underlying profit growth of about 36.2%–50.6% versus the prior-year period.

Management attributes the operational improvement to higher activity across its hospital network. During the reporting period, outpatient and emergency visits, inpatient admissions, and the share of higher-complexity Grade III/IV surgeries all increased. Enhanced medical-insurance management and ongoing cost-optimisation initiatives also supported margins.

Looking ahead to the second half of 2026, CR Medical plans to further diversify revenue streams, tighten daily hospital management, and invest in service-quality upgrades and intelligent health-service solutions, while remaining alert to external market changes.

The interim results are still being finalised and have not yet been reviewed by the audit committee or external auditors. The company expects to publish full unaudited interim figures by the end of August 2026 and advises investors to exercise caution when dealing in its shares until then.

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