ZYY Interim 2026 Results: Revenue Falls 53.6%, Net Profit Slips 14.6%

Bulletin Express
09/25

Ziyuanyuan Holdings Group Limited (“ZYY”) released its unaudited interim results for the six months ended 30 June 2026.

Revenue fell 53.6% year-on-year to RMB 94.42 million, mainly driven by a 60.2% slide in medical equipment and consumables trading income to RMB 77.83 million. Finance-leasing revenue declined to RMB 1.71 million (-55.1%), and postpartum-care services dropped to RMB 1.27 million (-69.2%). IT services partially offset the fall, rising to RMB 13.61 million from RMB 0.25 million.

Cost of sales decreased 58.5% to RMB 73.42 million, keeping gross margin broadly steady. Net reversal of expected-credit-loss provisions was RMB 4.23 million (prior period: RMB 8.93 million). Other operating expenses contracted 37.7% to RMB 8.52 million, while finance costs rose 12.7% to RMB 8.87 million, reflecting higher convertible-bond interest.

Profit before tax reached RMB 7.33 million (-15.9%). After a tax charge of RMB 1.83 million, profit attributable to owners of the Company declined 14.6% to RMB 5.77 million. Basic and diluted EPS came in at 1.24 RMB cents versus 1.57 RMB cents a year earlier.

Cash and cash equivalents shrank to RMB 0.99 million from RMB 20.54 million at end-2025, reflecting a RMB 50.52 million operating cash outflow. Working capital improved to RMB 333.00 million (end-2025: RMB 242.61 million) after a share placement in April that raised HKD 42.50 million (c.RMB 37.81 million). Total equity rose to RMB 343.58 million.

Total borrowings stood at RMB 173.82 million, comprising RMB 101.51 million due within one year, RMB 72.31 million due after one year and RMB 58.51 million of convertible bonds maturing within a year. The gearing ratio eased to 40.3% from 43.3% at end-2025.

Post-period, ZYY fully repaid an overdue HKD 3.6 million loan; the related winding-up petition filed in Hong Kong was withdrawn on 29 July 2026.

Management noted that adverse macro conditions and intense price competition weighed on trading and postpartum-care revenues, and will continue focusing on medical-equipment leasing, trading and healthcare-related services to diversify income streams.

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