云康集团(02325) - 2025 - 中期业绩

Financial Highlights Financial Highlights Despite a 17.6% revenue decrease, the Group significantly narrowed its loss for the period by 56.1% through enhanced operational management and cost control Financial Performance Summary (RMB thousand) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 313,217 | 379,943 | (17.6)% | | - Diagnostic testing services for medical alliances | 180,333 | 182,272 | (1.1)% | | - Diagnostic outsourcing services | 118,491 | 179,614 | (34.0)% | | - Diagnostic testing services for non-medical institutions | 14,393 | 18,057 | (20.3)% | | Cost of Revenue | (206,848) | (251,745) | (17.8)% | | Gross Profit | 106,369 | 128,198 | (17.0)% | | Loss Before Income Tax | (55,409) | (131,775) | (58.0)% | | Loss for the Period | (55,359) | (126,055) | (56.1)% | | Loss Attributable to Owners of the Company | (55,340) | (126,129) | (56.1)% | Loss Per Share (RMB) | Metric | 2025 (RMB) | 2024 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Loss Per Share (Basic) Attributable to Owners of the Company | (0.09) | (0.21) | (57.1)% | | Loss Per Share (Diluted) Attributable to Owners of the Company | (0.09) | (0.21) | (57.1)% | - The Group's overall revenue decline was primarily influenced by factors such as centralized procurement, medical insurance cost control, and intensified industry competition[5] - The significant narrowing of loss was mainly attributable to continuous improvements in operational and management capabilities, strengthened cost control, reduced selling and administrative expenses, optimized debt structure, substantial reduction in finance costs, and decreased impairment provisions for assets[6] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group recorded a loss for the period of RMB 55.4 million, significantly narrowed from RMB 126.1 million in the prior year, driven by reduced operating expenses and finance costs Condensed Consolidated Statement of Comprehensive Income (RMB thousand) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 313,217 | 379,943 | | Cost of Revenue | (206,848) | (251,745) | | Gross Profit | 106,369 | 128,198 | | Selling Expenses | (53,096) | (89,945) | | Administrative Expenses | (78,272) | (99,706) | | Net Impairment Loss on Financial Assets | (8,352) | (52,447) | | Other Income - Net | 31,822 | 6,590 | | Operating Loss | (40,263) | (107,517) | | Finance Costs - Net | (15,146) | (24,258) | | Loss Before Income Tax | (55,409) | (131,775) | | Loss for the Period | (55,359) | (126,055) | - Loss attributable to owners of the Company decreased from RMB 126,129 thousand in 2024 to RMB 55,340 thousand in 2025[10] - Both basic and diluted loss per share decreased from RMB (0.21) in 2024 to RMB (0.09) in 2025[10] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's net assets totaled RMB 1,102.5 million, slightly down from December 31, 2024, with improved liquidity driven by a greater reduction in current liabilities Condensed Consolidated Statement of Financial Position (RMB thousand) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 570,295 | 568,885 | | Current Assets | 2,490,119 | 2,659,451 | | Current Liabilities | 1,712,571 | 1,916,435 | | Net Current Assets | 777,548 | 743,016 | | Non-current Liabilities | 245,356 | 162,024 | | Net Assets | 1,102,487 | 1,149,877 | | Equity | 1,102,487 | 1,149,877 | - Financial assets at fair value through profit or loss increased by RMB 92.2 million to RMB 567.6 million, primarily due to increased private equity investments and fair value fluctuations[78] - Trade receivables decreased by RMB 31.3 million to RMB 597.1 million, mainly due to partial collections and impairment provisions[80] - Reduced borrowings and trade and other payables within current liabilities led to an increase in net current assets[86] Notes to the Condensed Consolidated Financial Statements 1 General Information The Company, an investment holding company incorporated in the Cayman Islands, primarily provides diagnostic testing services in China through its subsidiaries and was listed on the Main Board of the Hong Kong Stock Exchange on May 18, 2022 - The Company was incorporated as an exempted company with limited liability in the Cayman Islands on July 20, 2018[13] - The Company is an investment holding company, and its subsidiaries are principally engaged in providing diagnostic testing services in China[13] - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on May 18, 2022[14] 2 Basis of Preparation and Accounting Policies The Group's condensed consolidated interim financial statements are prepared in accordance with the Listing Rules and HKAS 34, with accounting policies consistent with the prior fiscal year and no significant impact from adopted revised standards - The condensed consolidated interim financial statements have been prepared in accordance with the Listing Rules and Hong Kong Accounting Standard 34[17] - The accounting policies applied in preparing this financial information are consistent with those applied in the Group's consolidated financial statements for the year ended December 31, 2024[17] (a) Revised Standards and Interpretations Adopted by the Group The Group adopted HKAS 21 (Amendment) "Lack of Exchangeability" effective January 1, 2025, with no significant impact on its results or financial position - The adoption of HKAS 21 (Amendment) "Lack of Exchangeability" became effective on January 1, 2025[18] - The adoption of these amendments had no significant impact on the Group's results and financial position[18] (b) New Standards, Amendments to Standards and Interpretations Issued But Not Yet Effective Several new HKFRSs and amendments have been issued but are not yet effective, with various effective dates, and the Company expects no material impact on its consolidated financial statements from their application New Standards and Amendments (Effective Date) | Standard | Amendment | Effective Date | | :--- | :--- | :--- | | HKFRS 9 and 7 (Amendments) | Amendments to Classification and Measurement of Financial Instruments | January 1, 2026 | | HKFRS 1, 7, 9, 10 and HKAS 7 (Amendments) | Annual Improvements to HKFRSs – Volume 11 | January 1, 2026 | | HKFRS 18 | Presentation and Disclosure in Financial Statements | January 1, 2027 | | HKFRS 19 | Non-public Sector Specific Liabilities | January 1, 2027 | | HK(IFRIC)-Int 5 (Amendment) | Presentation of Financial Statements – Classification by a Borrower of a Term Loan Containing a Repayment on Demand Clause | January 1, 2027 | | HKFRS 10 and HKAS 28 (Amendments) | Sale or Contribution of Assets between an Investor and its Associate or Joint Venture | To be determined | - The Company expects that the application of all other new HKFRSs and amendments will not have a material impact on the consolidated financial statements in the foreseeable future[20] 3 Critical Accounting Estimates and Judgements The significant judgments, estimates, and assumptions made by management in preparing the interim financial information are consistent with those applied in the consolidated financial statements for the year ended December 31, 2024 - The critical judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are the same as those applied in the Group's consolidated financial statements for the year ended December 31, 2024[21] 4 Segment and Revenue Information The Group's operating segments are reported consistently with internal reports provided to the chief operating decision-maker, with all revenue derived from diagnostic services in China and no single external customer accounting for more than 10% of total revenue - Operating segments are reported in a manner consistent with the internal reports provided to the chief operating decision-maker (the executive Directors)[22] - All of the Group's revenue for the six months ended June 30, 2025, was derived from China[22] Revenue by Type (RMB thousand) | Revenue Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Diagnostic Services | 313,217 | 379,943 | (a) Segment Information The Group's operating segments are reported consistently with internal reports provided to the executive Directors, who are responsible for resource allocation and performance assessment - Operating segments are reported in a manner consistent with the internal reports provided to the chief operating decision-maker (the executive Directors)[22] (c) Major Customer Information For the six months ended June 30, 2025, no single external customer accounted for 10% or more of the Group's total revenue, consistent with the prior year - For the six months ended June 30, 2025, all revenue from a single external customer was less than 10% of the Group's total revenue[25] (d) Unfulfilled Performance Obligations Unfulfilled performance obligations for diagnostic testing services are not significant due to short service provision times, and the Group has elected not to disclose remaining performance obligations for these contract types - The provision of diagnostic testing services is short, typically completed within hours or days[26] - Unfulfilled performance obligations are not significant, and the Group has elected not to disclose remaining performance obligations for these types of contracts[26] 5 Other Income - Net The Group's other income - net significantly increased from RMB 6.6 million in 2024 to RMB 31.8 million in 2025, primarily due to the reversal of a RMB 31.5 million provision for a legal dispute with an external supplier Other Income - Net (RMB thousand) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Gain on redemption of financial assets at fair value through profit or loss | – | 2,369 | | Gain on disposal of property and equipment | 370 | 3,282 | | Exchange (loss)/gain – net | (451) | 863 | | Others | 31,903 | 76 | | Total | 31,822 | 6,590 | - The increase in other income - net was mainly due to the Group's reversal of a RMB 31.5 million provision for a legal dispute into other income[27] 6 Finance Costs - Net The Group's finance costs - net decreased from RMB 24.3 million in 2024 to RMB 15.1 million in 2025, primarily due to a significant reduction in interest on interest-bearing borrowings, reflecting optimized debt structure and enhanced capital management Finance Costs - Net (RMB thousand) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank interest income | 4,445 | 3,628 | | Interest on interest-bearing borrowings | (19,319) | (25,831) | | Interest on lease liabilities | (272) | (820) | | Other finance costs | – | (1,235) | | Finance Costs - Net | (15,146) | (24,258) | - The decrease in finance costs - net was mainly due to reduced interest on interest-bearing borrowings, reflecting the Group's optimized debt structure and strengthened capital management[74] 7 Income Tax Credit The Group recorded an income tax credit of RMB 0.1 million in 2025, a significant decrease from RMB 5.7 million in 2024, primarily due to a narrowed loss for the period, with certain entities in China enjoying preferential tax rates as high-tech enterprises or small enterprises Income Tax Credit (RMB thousand) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax | – | (213) | | Deferred income tax | 50 | 5,933 | | Total | 50 | 5,720 | - The decrease in income tax credit was mainly due to a reduced loss for the period[76] - Certain entities in Mainland China are recognized as high-tech enterprises, enjoying a preferential corporate income tax rate of 15%[31] - Certain entities in Mainland China qualify as small enterprises, enjoying a preferential corporate income tax rate of 20% on taxable profits not exceeding RMB 3 million[31] 8 Loss Per Share For the six months ended June 30, 2025, both basic and diluted loss per share attributable to owners of the Company were RMB (0.09), significantly narrowed from RMB (0.21) in 2024, with diluted loss per share being the same as basic loss per share due to no potential dilutive shares Loss Per Share (RMB) | Metric | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic Loss Per Share Attributable to Owners of the Company | (0.09) | (0.21) | | Diluted Loss Per Share Attributable to Owners of the Company | (0.09) | (0.21) | - Basic loss per share is calculated by dividing the loss attributable to owners of the Company by the weighted average number of ordinary shares in issue (less shares held under the restricted share unit scheme)[32] - For the six months ended June 30, 2025 and 2024, the Company had no potential dilutive shares in issue, thus diluted loss per share was the same as basic loss per share[34] (a) Basic Loss Per Share Basic loss per share is calculated based on the loss attributable to owners of the Company divided by the weighted average number of ordinary shares in issue, excluding shares held under the 2022 Restricted Share Unit Scheme Basic Loss Per Share Calculation (RMB thousand) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | (55,340) | (126,129) | | Weighted average number of ordinary shares in issue less shares held under 2022 Restricted Share Unit Scheme | 585,344,654 | 600,602,161 | | Basic Loss Per Share Attributable to Owners of the Company (RMB) | (0.09) | (0.21) | (b) Diluted Loss Per Share Diluted loss per share is the same as basic loss per share for the six months ended June 30, 2025 and 2024, as the Company had no potential dilutive shares in issue - The Company had no potential dilutive shares in issue for the six months ended June 30, 2025 and 2024[34] - Diluted loss per share was the same as basic loss per share for the six months ended June 30, 2025 and 2024[34] 9 Trade Receivables As of June 30, 2025, the Group's net trade receivables decreased to RMB 597.1 million from RMB 628.5 million on December 31, 2024, primarily due to partial collections and impairment provisions, with strict controls and measures in place for overdue debts Trade Receivables (RMB thousand) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables (third parties) | 1,460,956 | 1,490,350 | | Trade receivables (related parties) | 594 | 403 | | Less: Impairment provision for trade receivables | (873,124) | (866,283) | | Bills receivable | 8,686 | 3,986 | | Total | 597,112 | 628,456 | - The decrease in trade receivables was mainly due to the collection of some trade receivables and the provision for trade receivables[80] - As of June 30, 2025, trade receivables with a carrying amount of RMB 200.42 million were pledged to secure the Group's bank borrowings[35] - As of the date of this announcement, RMB 86.3 million of trade receivables were subsequently recovered, representing 5.9% of the trade receivables balance as of June 30, 2025[81] 10 Prepayments and Other Receivables As of June 30, 2025, the Group's total prepayments and other receivables amounted to RMB 114.9 million, consistent with December 31, 2024, with RMB 88.6 million in non-current bills receivable fully redeemed subsequently Prepayments and Other Receivables (RMB thousand) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Included in current assets | 25,240 | 24,279 | | Included in non-current assets | 89,659 | 90,613 | | Total | 114,899 | 114,892 | - Bills receivable of RMB 88.581 million included in non-current assets were fully redeemed after the period end[36] 11 Trade and Other Payables As of June 30, 2025, the Group's trade and other payables decreased to RMB 906.5 million from RMB 970.2 million on December 31, 2024, mainly due to the reversal of a dispute provision for professional services and the payment of certain expenses and overdue amounts Trade and Other Payables (RMB thousand) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables (third parties) | 139,290 | 147,785 | | Trade payables (related parties) | 644,133 | 631,579 | | Other payables | 74,699 | 130,943 | | Accrued staff costs | 41,523 | 48,551 | | Other taxes payable | 6,892 | 11,300 | | Total | 906,537 | 970,158 | - The decrease in trade and other payables was mainly due to the reversal of a dispute provision (RMB 31.5 million) arising from professional services not meeting expectations and the payment of certain expenses and overdue amounts[83][37] 12 Dividends The Board of Directors declared no interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors declared no interim dividend for the six months ended June 30, 2025 (June 30, 2024: nil)[38] 13 Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities, consistent with December 31, 2024 - As of June 30, 2025, the Group had no significant contingent liabilities[39] 14 Events After the Reporting Period No significant events affecting the Group have occurred after June 30, 2025, other than those disclosed in this announcement - No significant events affecting the Group have occurred after June 30, 2025, other than those disclosed in this announcement[40] Industry Overview 1.1 Medical Alliance Construction Shifts to High-Quality Development, Optimizing Medical Service System to Further Release Market Demand As 2025 marks the end of the "14th Five-Year Plan," China's healthcare sector has achieved high-quality development with comprehensive coverage of medical alliances, driving a shift towards high-quality operations, resource decentralization, and mutual recognition of test results, creating a hundred-billion-level incremental market in emerging fields like molecular diagnostics and gene sequencing - During the "14th Five-Year Plan" period, 114 new national regional medical centers were established, bringing the total to 125[42] - As of the end of 2024, 2,188 counties (cities, districts) nationwide have promoted the construction of closely integrated county medical communities, achieving full coverage at the provincial level[42] - The national government will further promote the sharing of high-quality medical and health resources and popularize the "distributed testing, centralized diagnosis" medical service model[42] - Medical alliance construction is expected to create a hundred-billion-level incremental market, especially in emerging fields such as molecular diagnostics and gene sequencing[43] 1.2 Broad Prospects for Precision Medicine Market, Policy and Technology Synergy Drive Industry Upgrade Precision medicine is in a golden development period, driven by favorable policies like the "14th Five-Year Plan" for bioeconomy development and a RMB 60 billion investment plan by 2030, alongside rapid advancements in gene sequencing and immunotherapy, with high-quality development of LDTs being crucial for clinical translation and scaled practice to meet demand for precise diagnostics in conditions like malignant tumors and severe infectious diseases - The National Development and Reform Commission's "14th Five-Year Plan for Bioeconomy Development" explicitly lists precision medicine as a key development direction for the healthcare industry[45] - The Ministry of Science and Technology plans to invest RMB 60 billion by 2030 to build a precision medicine system covering the entire disease cycle[45] - The high-quality development of LDT (Laboratory Developed Tests) will promote the clinical translation and scaled practice of precision medicine[46] - Technologies such as NGS and mass spectrometry have become indispensable for the diagnosis and treatment guidance of malignant tumors and severe infectious diseases[46] 1.3 AI Empowers Hierarchical Diagnosis and Treatment, Industry Welcomes New Development Opportunities In 2025, national and local policies strongly support "AI+Healthcare" initiatives, promoting AI applications in medical service management, primary public health, and health industry development, with AI large models effectively addressing resource imbalances and talent shortages in grassroots healthcare, enhancing diagnostic efficiency and accuracy, and creating historical opportunities for the third-party medical testing industry to implement hierarchical diagnosis and treatment - National and local policies strongly support "AI+Healthcare" construction, issuing the "Reference Guidelines for AI Application Scenarios in the Health Industry"[47] - AI large model technology can help grassroots doctors quickly and accurately analyze conditions, improving diagnostic efficiency and accuracy, and compensating for the diagnostic capabilities of grassroots doctors[48] - Smart healthcare has become an important way to improve the quality and efficiency of medical services at all levels, effectively promoting the implementation of hierarchical diagnosis and treatment[48] - The scenario-based implementation of medical AI technology brings historical opportunities for the third-party medical testing industry[48] Business Review Business Review Despite macroeconomic challenges, the Group adhered to its "deep service, lean operation" strategy, implementing a "one horizontal, one vertical" approach and leveraging AI for medical alliance solutions, resulting in a 17.6% decrease in diagnostic testing service revenue to RMB 313.2 million, but a significant 56.1% narrowing of net loss to RMB 55.4 million and an improved gross profit margin of 34.0%, with diagnostic testing services for medical alliances remaining the largest business segment at 57.6% of total revenue - The Group firmly adheres to the operating principle of "deep service, lean operation," continuously strengthening clinical empowerment value[49] - Implementation of the "one horizontal, one vertical" strategy: horizontally exporting a lean operating system to promote multi-mode cooperation in medical alliances; vertically focusing on medical-lab joint innovation in specialized areas[49] - Empowering medical alliance overall solutions with AI, promoting the practical application of AI in medical scenarios[49] Key Business Metrics (RMB million) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Diagnostic testing services revenue | 313.2 | 379.9 | (17.6)% | | Net Loss | (55.4) | (126.1) | (56.1)% | | Gross Profit Margin | 34.0% | 33.7% | +0.3% | | Diagnostic testing services revenue for medical alliances | 180.3 | 182.3 | (1.1)% | | Proportion of medical alliance business to total revenue | 57.6% | 48.0% | +9.6% | 2.1 "One Horizontal, One Vertical" Strategy Steadily Implemented, Hospital-Enterprise Cooperation Yields Significant Results The Group's "one horizontal, one vertical" strategy is steadily implemented, with the horizontal approach exporting a lean operating system to nearly 450 medical alliance clients, maintaining this business as the largest segment, while the vertical approach, through the "Medical-Lab Joint Innovation Platform," collaborates with dozens of top medical institutions nationwide to develop innovative diagnostic products and publish expert consensuses, driving long-term growth - The Group is committed to developing an innovative service model for medical alliance co-construction based on specialization, standardization, digitalization, and collaboration[51] - It has provided multi-scenario solutions, including AI+medical alliance digital solutions and overall medical laboratory cooperation, to nearly 450 medical alliance clients[51] - Medical alliance co-construction business has consistently remained the Group's largest business segment since 2023, accounting for 57.6% of total revenue during the reporting period[51] - The Group pioneered the "Medical-Lab Joint Innovation Platform," collaborating with dozens of top medical institutions nationwide to successfully develop dozens of innovative diagnostic products for infectious syndromes and personalized medication gene testing[52] Outputting Lean Operating System, Promoting Multi-mode Cooperation in Medical Alliances Yunkang Group, a pioneer in medical alliance construction, exports its lean operating system to nearly 450 medical alliance clients, offering multi-mode, multi-scenario solutions including AI+digital solutions, effectively enhancing medical institutions' service capabilities and maintaining stable development in the medical alliance diagnostic testing service segment, which accounts for 57.6% of total revenue - The Group has provided multi-scenario solutions for different clinical needs to nearly 450 medical alliance clients, including AI+medical alliance digital solutions[51] - The diagnostic testing services for medical alliances segment recorded revenue of RMB 180.3 million, largely flat compared to the same period last year[51] - The medical alliance co-construction business accounted for 57.6% of total revenue, an increase of approximately 9.6% compared to the same period last year[51] Medical-Lab Joint Innovation Platform Builds Strong Engine for Scientific Innovation, Result Transformation Drives Long-term Development Through its "Medical-Lab Joint Innovation Platform," the Group collaborates with top medical institutions like Guangdong Provincial People's Hospital and Guangzhou Medical University First Affiliated Hospital to develop new panel products for respiratory, central nervous system, and urinary tNGS, as well as pharmacogenomic testing for mental illnesses, and has published the "Expert Consensus on Clinical Standardized Application of tNGS," achieving efficient R&D outcome transformation - Deepened cooperation with Guangdong Provincial People's Hospital, focusing on the research and development and clinical application of specialized customized pathogen targeted next-generation sequencing (tNGS) projects[53] - Launched new panel products for respiratory infections, central nervous system infections, and invasive fungal infections, and formed the "Expert Consensus on Clinical Standardized Application of tNGS"[53] - Collaborated with Guangzhou Medical University First Affiliated Hospital to develop urinary tNGS products, promoting precise diagnosis and treatment of urinary tract infections[54] - Jointly established a "School-Hospital-Enterprise Joint Innovation Platform" with Jinan University First Affiliated Hospital to incubate the "Innovative Project for Pharmacogenomic Testing of Mental Illnesses"[54] 2.2 AI Empowers Multi-mode Solutions for Medical Alliances, Enhancing Quality and Efficiency to Deeply Serve Customers Yunkang Group actively builds an "AI+Healthcare" smart medical platform, fully integrating the DeepSeek large model to apply AI technology across its medical laboratory's multi-technology platforms, significantly improving data processing, deep image reading, disease analysis, and report interpretation efficiency, while also extending to clinical multi-scenario innovative product services, customer service, and sample management for comprehensive optimization of medical testing service processes - Yunkang focuses on new medical technologies, cloud computing, big data, IoT, 5G, and AI to build an "AI+Healthcare" smart medical platform[55] - The Group officially integrated DeepSeek, applying AI technology comprehensively across its medical laboratory's multi-technology platforms[56] - AI technology significantly enhances capabilities in data processing, deep image reading, disease analysis, and report interpretation, substantially improving laboratory testing efficiency and shortening report turnaround times[56] - AI technology is widely applied in key support systems such as clinical multi-scenario innovative product services, customer service, and sample management, enabling intelligent online customer service and efficient review of results and reports[56] AI Technology Deeply Empowers Full Clinical Diagnosis and Treatment Process The Group, in collaboration with Runda Medical, launched the "Zhiyun" medical large model, based on general large model technologies like DeepSeek, Pangu, and Tongyi Qianwen, covering pre-diagnosis, in-diagnosis, and post-diagnosis scenarios to provide efficient and convenient support for clinical medical services; a strategic cooperation agreement has been signed to deepen the "AI+IVD+Medical Services" industry ecosystem, with "Zhiyun" to be piloted in Yunkang's partner medical institutions - The "Zhiyun" medical large model, developed in collaboration with Runda Medical, was officially launched, based on general large model technologies such as DeepSeek, Pangu, and Tongyi Qianwen[58] - "Zhiyun" covers pre-diagnosis, in-diagnosis, and post-diagnosis scenarios, providing more efficient and convenient support and experience for clinical medical services[58] - The Group signed a strategic cooperation agreement with Runda Medical to strengthen deep cooperation in the "AI+IVD+Medical Services" industry ecosystem[58] - The "Zhiyun" medical large model will be piloted in Yunkang's partner medical institutions and gradually promoted nationwide[58] Management Discussion and Analysis Revenue During the reporting period, the Group's revenue was RMB 313.2 million, a 17.6% year-on-year decrease, primarily due to centralized procurement, medical insurance cost control, and intensified industry competition, with diagnostic outsourcing services revenue decreasing by 34.0% to RMB 118.5 million and diagnostic testing services for non-medical institutions decreasing by 20.3% to RMB 14.4 million, while diagnostic testing services for medical alliances remained largely stable, accounting for 57.6% of total revenue - During the reporting period, the Group recorded revenue of RMB 313.2 million, a 17.6% decrease compared to the same period in 2024[60] - The Group's overall revenue decline was primarily influenced by factors such as centralized procurement, medical insurance cost control, and intensified industry competition[60] Revenue by Source (RMB thousand) | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Diagnostic testing services for medical alliances | 180,333 | 182,272 | (1.1)% | | Diagnostic outsourcing services | 118,491 | 179,614 | (34.0)% | | Diagnostic testing services for non-medical institutions | 14,393 | 18,057 | (20.3)% | | Total Revenue | 313,217 | 379,943 | (17.6)% | Diagnostic Testing Services for Medical Alliances The Group's revenue from diagnostic testing services for medical alliances was RMB 180.3 million, largely stable compared to the same period in 2024, and continues to be the Group's largest business segment, accounting for 57.6% of total revenue, an increase of approximately 9.6% year-on-year, demonstrating a clear competitive advantage - Revenue from diagnostic testing services for medical alliances was RMB 180.3 million, largely flat compared to the same period in 2024[63] - This business has consistently remained the Group's largest business segment since 2023, with its revenue accounting for 57.6% of total revenue during the reporting period, an increase of approximately 9.6% compared to the same period last year[63] Diagnostic Outsourcing Services Revenue from diagnostic outsourcing services was RMB 118.5 million, a 34.0% decrease from the same period in 2024, primarily due to the impact of industry policies, intense market competition, and the Group's proactive optimization of its customer structure - Revenue from diagnostic outsourcing services was RMB 118.5 million, a 34.0% decrease compared to the same period in 2024[64] - The decrease in revenue was mainly due to the impact of industry policies and intense market competition, with the growth in demand for routine testing services falling short of expectations, and the Group's proactive optimization of its customer structure[64] Diagnostic Testing Services for Non-medical Institutions Revenue from diagnostic testing services for non-medical institutions was RMB 14.4 million, a 20.3% decrease from the same period in 2024, primarily due to external market conditions and intensified industry competition - Revenue from diagnostic testing services for non-medical institutions was RMB 14.4 million, a 20.3% decrease compared to the same period in 2024[65] - The decrease in revenue was mainly due to external market conditions and intensified industry competition[65] Cost of Revenue The Group's cost of revenue decreased by 17.8% to RMB 206.8 million in 2025 from RMB 251.7 million in 2024, primarily due to a corresponding reduction in line with the overall revenue decline - Cost of revenue decreased by 17.8% to RMB 206.8 million in 2025 from RMB 251.7 million in 2024[66] - The decrease was mainly due to the overall decline in revenue, which led to a corresponding reduction in cost of revenue[66] Gross Profit and Gross Profit Margin The Group's gross profit decreased by 17.0% to RMB 106.4 million in 2025 from RMB 128.2 million in 2024, primarily due to the overall revenue decline; however, the gross profit margin slightly increased from 33.7% to 34.0% through continuous optimization of operating costs and improved resource utilization efficiency - Gross profit decreased by 17.0% to RMB 106.4 million in 2025 from RMB 128.2 million in 2024[67] - The overall gross profit margin increased from 33.7% in the same period of 2024 to 34.0% in the same period of 2025[67] - The improvement in gross profit margin was mainly due to the Group's continuous optimization of operating costs, further enhancing resource utilization efficiency, and reducing costs while increasing efficiency[67] Other Income The Group's other income decreased from RMB 1.0 million in 2024 to RMB 0.3 million in 2025, primarily due to a reduction in government grants - Other income decreased from RMB 1.0 million in 2024 to RMB 0.3 million in 2025[68] - This decrease was mainly due to a reduction in government grants[68] Other Income - Net The Group's other income - net increased from RMB 6.6 million in 2024 to RMB 31.8 million in 2025, primarily due to the reversal of a RMB 31.5 million provision for a legal dispute with an external supplier into other income following the withdrawal of the lawsuit - Other income - net increased from RMB 6.6 million in 2024 to RMB 31.8 million in 2025[69] - This increase was mainly due to the Group's reversal of a RMB 31.5 million provision for a legal dispute into other income[69] Selling Expenses The Group's selling expenses decreased by 41.0% to RMB 53.1 million in 2025 from RMB 89.9 million in 2024, primarily due to the Group's continuous improvement in operational and management capabilities, achieved through strengthened cost control and precise allocation of expenses - Selling expenses decreased by 41.0% to RMB 53.1 million in 2025 from RMB 89.9 million in 2024[70] - The decrease was mainly due to the Group's continuous improvement in operational and management capabilities, achieved through strengthened cost control and precise allocation of expenses[70] Administrative Expenses The Group's administrative expenses decreased by 21.5% to RMB 78.3 million in 2025 from RMB 99.7 million in 2024, primarily due to a RMB 9.7 million reduction in restricted share award expenses and optimized management processes, while R&D expenses slightly decreased to RMB 21.1 million but increased as a percentage of total revenue from 6.5% to 6.7%, indicating continued investment in innovation - Administrative expenses decreased by 21.5% to RMB 78.3 million in 2025 from RMB 99.7 million in 2024[71] - The decrease was mainly due to a RMB 9.7 million reduction in restricted share award expenses and the Group's continuous optimization of management processes[71] - Research and development expenses slightly decreased from RMB 24.7 million in 2024 to RMB 21.1 million in 2025[71] - Research and development expenses as a percentage of total revenue increased from 6.5% in the same period of 2024 to 6.7% in the same period of 2025[71] Impairment Loss on Financial Assets The Group's impairment loss on financial assets, primarily trade receivables provisions, was approximately RMB 8.4 million for the six months ended June 30, 2025, a RMB 44.0 million decrease from RMB 52.4 million in the prior year, with the Group using a "simplified approach" for expected credit loss calculation and planning to strengthen trade receivables management through legal actions and collection efforts - Impairment loss on financial assets was approximately RMB 8.4 million, a RMB 44.0 million decrease from RMB 52.4 million in the same period of 2024[72] - The Group applies the "simplified approach" permitted by HKFRS for calculating expected credit losses[72] - Group management will take necessary measures to strengthen the management of trade receivables, including enhancing credit control, intensifying collection efforts, and taking legal action[73] Finance Costs - Net The Group's finance costs - net decreased from RMB 24.3 million in 2024 to RMB 15.1 million in 2025, primarily due to the Group's continuous optimization of its debt structure and strengthened capital management, leading to reduced interest expenses on interest-bearing borrowings - Finance costs - net decreased from RMB 24.3 million in 2024 to RMB 15.1 million in 2025[74] - The decrease was mainly due to the Group's continuous optimization of its debt structure and strengthened capital management, leading to reduced interest expenses on interest-bearing borrowings[74] Loss Before Income Tax The Group recorded a loss before income tax of RMB 55.4 million in 2025, a significant decrease from RMB 131.8 million in 2024, primarily attributable to enhanced operational management, cost control, reduced selling and administrative expenses, substantially lower finance costs, decreased impairment provisions for assets, and the reversal of legal dispute provisions - Loss before income tax decreased from RMB 131.8 million in 2024 to RMB 55.4 million in 2025[75] - The decrease in loss was mainly due to: enhanced operational and management capabilities, strengthened cost control, reduced selling and administrative expenses, a substantial decrease in finance costs, a reduction in impairment provisions for assets of approximately RMB 44.0 million, and the reversal of legal dispute provisions into other income of approximately RMB 31.5 million[75] Income Tax Credit The Group recorded an income tax credit of RMB 0.1 million in 2025, a significant decrease from RMB 5.7 million in 2024, primarily due to a reduced loss for the period - Income tax credit decreased from RMB 5.7 million in 2024 to RMB 0.1 million in 2025[76] - The decrease was mainly due to a reduced loss for the period[76] Property and Equipment The Group's property and equipment decreased from RMB 314.3 million on December 31, 2024, to RMB 311.2 million on June 30, 2025, primarily due to depreciation and amortization - Property and equipment decreased from RMB 314.3 million on December 31, 2024, to RMB 311.2 million on June 30, 2025[77] - The decrease was mainly due to depreciation and amortization of property and equipment[77] Financial Assets Measured at Fair Value As of June 30, 2025, the balance of financial assets at fair value through profit or loss increased by RMB 92.2 million to RMB 567.6 million, primarily due to increased private equity investments and fair value fluctuations, while financial assets at fair value through other comprehensive income also slightly increased - The balance of financial assets at fair value through profit or loss was RMB 567.6 million, an increase of RMB 92.2 million compared to December 31, 2024[78] - The increase was due to increased investments in private equity funds and the impact of fair value fluctuations of financial assets at fair value through profit or loss during the reporting period[78] - The balance of financial assets at fair value through other comprehensive income was RMB 64.1 million, an increase of RMB 5.0 million compared to December 31, 2024[78] Inventories The Group's inventories, primarily reagents and pharmaceuticals, increased from RMB 16.1 million on December 31, 2024, to RMB 16.7 million on June 30, 2025, a non-material change - Inventories increased from RMB 16.1 million on December 31, 2024, to RMB 16.7 million on June 30, 2025, a non-material change[79] Trade Receivables The Group's trade receivables decreased from RMB 628.5 million on December 31, 2024, to RMB 597.1 million on June 30, 2025, primarily due to partial collections and impairment provisions, with strict controls maintained over outstanding receivables to minimize credit risk Trade Receivables (RMB thousand) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables (third parties) | 1,460,956 | 1,490,350 | | Trade receivables (related parties) | 594 | 403 | | Less: Impairment provision for trade receivables | (873,124) | (866,283) | | Bills receivable | 8,686 | 3,986 | | Total | 597,112 | 628,456 | - The decrease in trade receivables was mainly due to the collection of some trade receivables and the provision for trade receivables[80] - The Group seeks to maintain strict control over outstanding receivables and has a credit control department to minimize credit risk[80] - As of the date of this announcement, RMB 86.3 million of trade receivables were subsequently recovered, representing 5.9% of the trade receivables balance as of June 30, 2025[81] Prepayments and Other Receivables The Group's prepayments and other receivables amounted to RMB 114.9 million as of June 30, 2025, which was largely consistent with the amount as of December 31, 2024 - Prepayments and other receivables amounted to RMB 114.9 million as of June 30, 2025, which was largely consistent with the amount as of December 31, 2024[82] Trade and Other Payables The Group's trade and other payables decreased from RMB 970.2 million on December 31, 2024, to RMB 906.5 million on June 30, 2025, primarily due to the reversal of a dispute provision for professional services not meeting expectations and the payment of certain expenses and overdue amounts - Trade and other payables decreased from RMB 970.2 million on December 31, 2024, to RMB 906.5 million on June 30, 2025[83] - The decrease was mainly due to the reversal of a dispute provision arising from professional services not meeting expectations and the payment of certain expenses and overdue amounts[83] Capital Management The Group's capital management objective is to safeguard its ability to continue as a going concern, provide returns to shareholders, and benefit other stakeholders, while maintaining an optimal capital structure to minimize capital costs - The Group's capital management objective is to safeguard its ability to continue as a going concern, so as to provide returns to its shareholders and benefits for other stakeholders[84] - It also aims to maintain an optimal capital structure to reduce capital costs[84] Liquidity and Capital Resources The Group's cash and cash equivalents decreased to RMB 1,186.1 million, primarily due to increased investments in financial assets at fair value through profit or loss and partial repayment of borrowings; however, net current assets increased to RMB 777.5 million due to reduced current liabilities, improving both current and quick ratios - Cash and cash equivalents decreased from RMB 1,321.4 million on December 31, 2024, to RMB 1,186.1 million on June 30, 2025[85] - The decrease was mainly due to the Group's increased investments in financial assets at fair value through profit or loss and partial repayment of borrowings[85] Summary of Net Current Assets The Group's net current assets increased from RMB 743.0 million on December 31, 2024, to RMB 777.5 million on June 30, 2025, primarily due to a reduction in borrowings included in current liabilities and a decrease in trade and other payables Net Current Assets (RMB thousand) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Current Assets | 2,490,119 | 2,659,451 | | Total Current Liabilities | 1,712,571 | 1,916,435 | | Net Current Assets | 777,548 | 743,016 | - The increase in net current assets was mainly due to a decrease in borrowings included in current liabilities and a decrease in trade and other payables[86] Key Financial Ratios The Group's gross profit margin slightly improved to 34.0%, with current and quick ratios both increasing to 1.45 and 1.44 respectively, while the gearing ratio remained at 0.64 Key Financial Ratios | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gross Profit Margin | 34.0% | 33.7% | | Current Ratio | 1.45 | 1.39 | | Quick Ratio | 1.44 | 1.38 | | Gearing Ratio | 0.64 | 0.64 | Contingent Liabilities As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[92] Financing and Treasury Policies The Group adopts a centralized financing and treasury policy to ensure efficient use of funds, maintain a sound liquidity position, and manage its capital structure to balance shareholder returns with capital costs - The Group adopts a centralized financing and treasury policy to ensure the effective use of the Group's funds[93] - The Group maintains a sound liquidity position with sufficient cash reserves and committed adequate credit facilities from major financial institutions[93] - The Group's primary objective of capital management is to safeguard its ability to generate returns for shareholders and benefits for other stakeholders by pricing products commensurate with the level of risk and obtaining financing at a reasonable cost[93] Foreign Exchange Risk The Group faces foreign exchange risk from bank deposits denominated in HKD and USD, financial assets at fair value through profit or loss, and borrowings denominated in CHF; the Group has implemented forward foreign currency swap arrangements for CHF-denominated borrowings to mitigate exchange risk and will continue to monitor foreign exchange exposure - Foreign exchange risk arises from bank deposits denominated in HKD or USD, financial assets at fair value through profit or loss, and borrowings denominated in CHF[94] - The Group has entered into forward foreign currency swap arrangements for CHF-denominated borrowings to mitigate exchange risk[94] Cash Flow and Fair Value Interest Rate Risk The Group's interest rate risk arises from borrowings, with floating-rate borrowings exposing it to cash flow interest rate risk and fixed-rate borrowings to fair value interest rate risk; the Group currently does not use interest rate swap arrangements but will consider hedging interest rate risk if necessary - The Group's interest rate risk arises from borrowings, with interest-bearing borrowings at floating rates exposing the Group to cash flow interest rate risk, and interest-bearing borrowings at fixed rates exposing the Group to fair value interest rate risk[95] - The Group currently does not use any interest rate swap arrangements but will consider hedging interest rate risk if necessary[95] Credit Risk The Group faces credit risk related to trade and other receivables, amounts due from related parties, and bank cash deposits, with the carrying amounts of these financial assets representing the maximum credit risk exposure - The Group faces credit risk related to trade and other receivables, amounts due from related parties, and bank cash deposits[96] - The carrying amounts of each class of financial assets mentioned above represent the Group's maximum exposure to credit risk for the respective class of financial assets[96] Liquidity Risk To manage liquidity risk, the Group regularly monitors its liquidity requirements and compliance with loan covenants, ensuring sufficient cash reserves and committed credit facilities from major financial institutions to meet both short-term and long-term liquidity needs - The Group's policy is to regularly monitor its liquidity requirements and compliance with loan covenants[97] - It ensures sufficient cash reserves and committed adequate credit facilities from major financial institutions to meet both short-term and long-term liquidity needs[97] Borrowings and Gearing Ratio As of June 30, 2025, the Group's total borrowings were RMB 1,003.6 million, a decrease from December 31, 2024, and the gearing ratio slightly decreased from 93.3% to 92.2%, primarily due to a reduction in total interest-bearing borrowings and lease liabilities Borrowings and Gearing Ratio (RMB thousand) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest-bearing borrowings | 1,003,558 | 1,053,914 | | Lease liabilities | 12,530 | 19,030 | | Total interest-bearing borrowings and lease liabilities | 1,016,088 | 1,072,944 | | Total Equity | 1,102,487 | 1,149,877 | | Total Equity plus Other Financial Liabilities | 1,102,487 | 1,149,877 | | Gearing Ratio | 92.2% | 93.3% | - The gearing ratio decreased mainly due to a RMB 56.9 million reduction in total interest-bearing borrowings and lease liabilities compared to December 31, 2024[98] Pledge of Assets As of June 30, 2025, approximately RMB 431.3 million of borrowings were secured by certain equipment and land parcels, and pledged by certain time deposits, trade receivables, and equity interests in a subsidiary - Approximately RMB 431.3 million of borrowings were secured by certain equipment and land parcels of the Group, and pledged by certain time deposits, certain trade receivables, and equity interests in a subsidiary[99] Material Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures During the Reporting Period The Group did not undertake any material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period - The Group did not undertake any material investments, material acquisitions or disposals of subsidiaries, associates and joint ventures during the reporting period[100] Events After the Reporting Period No significant events affecting the Group have occurred from June 30, 2025, up to the date of this announcement - No significant events affecting the Group have occurred from June 30, 2025, up to the date of this announcement[101] Future Plans for Material Investments and Capital Assets As of the date of this announcement, the Group has no specific committed plans for material investments and capital assets - As of the date of this announcement, the Group has no specific committed plans for material investments and capital assets[102] Employees and Remuneration As of June 30, 2025, the Group had 1,146 employees with a total remuneration cost of RMB 124.6 million, including RMB 8.0 million in restricted share award expenses; the Group offers competitive compensation, benefits, and training, and has a restricted share unit scheme to incentivize key personnel - As of June 30, 2025, the Group had 1,146 employees (June 30, 2024: 1,459 employees)[103] - For the six months ended June 30, 2025, the total remuneration cost incurred by the Group was RMB 124.6 million (same period in 2024: RMB 156.2 million)[103] - Total employee remuneration included expenses related to restricted share awards of approximately RMB 8.0 million (same period in 2024: RMB 17.7 million)[103] - The Company adopted a Restricted Share Unit Scheme on November 23, 2022, to attract, retain, and incentivize key personnel and partners of the Company[103] Other Information Compliance with Code Provisions in Part 2 of the Corporate Governance Code ("CG Code") Contained in Appendix C1 of the Listing Rules The Company is committed to high standards of corporate governance and has adopted the CG Code, complying with all applicable code provisions during the reporting period, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Zhang Yong, which the Board believes benefits the Group's operations and management - The Company has adopted the principles and code provisions of the CG Code as the basis for its corporate governance practices[105] - During the reporting period, the Company complied with all applicable code provisions, except for the deviation from code provision C.2.1 of the CG Code (the roles of chairman and chief executive officer should be separate)[105] - Mr. Zhang Yong currently serves as both the Chairman of the Board and the Chief Executive Officer of the Company, and the Directors believe that his dual role benefits the Group's business operations and management[105] Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers ("Model Code") Contained in Appendix C3 of the Listing Rules The Company has adopted the Model Code to regulate directors' securities transactions, and all directors confirmed compliance during the reporting period, with no breaches found among relevant employees; the Company also has an inside information policy in place - The Company has adopted the Model Code as its code of conduct for securities transactions by Directors[106] - All Directors confirmed compliance with the Model Code during the reporting period[106] - The Company has also established an inside information policy to fulfill its obligations under the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and the Listing Rules[106] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the Company nor any of its subsidiaries or consolidated affiliated entities purchased, redeemed, or sold any of the Company's or its subsidiaries' listed securities, and as of June 30, 2025, the Company held no treasury shares - During the reporting period, neither the Company nor any of its subsidiaries or consolidated affiliated entities purchased, redeemed, or sold any of the Company's or its subsidiaries' listed securities[107] - As of June 30, 2025, the Company held no treasury shares[107] Interim Dividends The Board of Directors declared no interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors declared no interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[108] Audit Committee The Audit Committee has r