BENQ BM Holding Cayman Corp. (BENQ HOLDING) reported interim results for the six months ended 30 June 2026, showing modest top-line growth but a sharp contraction in earnings.

Revenue and Mix • Group revenue rose 2.4% year-on-year to RMB 1.34 billion, driven by a 3.5% rise in inpatient healthcare income to RMB 720.00 million and a 0.8% uptick in outpatient services to RMB 608.00 million. • Rental and other ancillary income contributed RMB 11.12 million.

Profitability Under Pressure • Gross profit fell 13.4% to RMB 180.67 million as cost of revenue increased 5.4% to RMB 1.16 billion. Gross margin narrowed to 13.4% from 15.9%. • Profit from operations dropped 45.1% to RMB 41.20 million; profit before tax declined 51.8% to RMB 33.96 million. • Net profit attributable to shareholders contracted 57.3% to RMB 20.81 million, squeezing the net margin to 1.5% from 3.7% a year earlier. • The downturn reflects higher staff expenses (+RMB 9.60 million) following head-count growth to 3,768 employees, and a RMB 12.3 million share of associates’ losses. Depreciation and maintenance tied to Nanjing BenQ Hospital Phase II further weighed on margins.

Cash Flow and Balance Sheet • Operating cash inflow reached RMB 111.73 million, up from RMB 80.13 million in H1 2025. • Substantial capex outlays—including a RMB 99.00 million pre-payment for Jiangsu’s first proton therapy device—drove a free-cash outflow, reducing cash and equivalents to RMB 622.44 million (31 Dec 2025: RMB 649.80 million). • Net current liabilities widened to RMB 402.76 million; the current ratio slipped to 0.7. • Total interest-bearing debt increased to RMB 750.26 million, keeping the gearing ratio stable at 0.4.

Operational Metrics • Registered beds climbed to 2,048 (H1 2025: 1,850) following the launch of nursing care facilities in Nanjing and Suzhou. Bed utilisation eased to 93.2% from 97.1% due to capacity ramp-up. • Inpatient admissions grew 2.6% to 43,500, while outpatient visits rose 3.1% to 1.09 million. Average inpatient spend advanced 3.3% to RMB 16,163; average outpatient spend edged down to RMB 525.

Capital Expenditure and IPO Proceeds • BENQ HOLDING has earmarked HKD 554.50 million of IPO proceeds mainly for hospital expansion and equipment upgrades. As of 30 June 2026, HKD 117.60 million (≈ RMB 106.0 million) had been deployed, including investment in a proton therapy centre and specialty buildings.

Dividend • The board did not declare an interim dividend.

Outlook Management plans to deepen specialty development, integrate newly opened nursing care units, and pursue further “smart hospital” upgrades while monitoring costs and liquidity.