Yestar Healthcare Holdings Company Limited (“Yestar Healthcare”) reported first-half 2026 revenue of RMB 661.61 million, down 17.6 % year on year (1H 2025: RMB 802.63 million), as China’s centralised volume-based procurement (VBP) continued to suppress demand and prices in the in-vitro diagnostics (IVD) market.

Revenue & Profitability • Medical products & equipment—the core business—generated RMB 531.67 million, accounting for 80.4 % of group sales and falling 26.4 % from 1H 2025. Segment gross margin, however, improved by 5.8 ppt to 22.7 % after exiting low-margin accounts. • Imaging printing products (non-medical) revenue rose 61.3 % to RMB 129.94 million, buoyed by rebounding demand for industrial films and the pass-through of higher silver costs. Segment gross margin widened 4.3 ppt to 18.5 %. • Group gross profit increased 8.3 % to RMB 144.80 million, lifting the gross margin to 21.9 % (1H 2025: 16.7 %). • Selling and distribution expenses declined 3.8 % to RMB 37.31 million; administrative expenses fell 3.0 % to RMB 75.38 million. • Finance costs dropped 34.2 % to RMB 4.29 million on lower borrowings. • Other expenses rose 27.7 % to RMB 22.41 million, mainly on currency fluctuations; other income fell 63.8 % to RMB 3.21 million as government subsidies tapered. • Result: loss attributable to shareholders of RMB 3.17 million (1H 2025 profit: RMB 5.76 million), translating into basic loss per share of RMB 0.14 cents. No interim dividend was declared.

Balance Sheet & Cash Flow • Cash and cash equivalents stood at RMB 194.44 million, down from RMB 234.36 million at end-2025, reflecting advance payments for R&D and production equipment. • Current ratio remained adequate at 1.35 (end-2025: 1.37). • Total interest-bearing debt declined to RMB 181.49 million; net cash position eliminated the need to disclose a gearing ratio. • Operating cash inflow was RMB 44.97 million (1H 2025: RMB 208.64 million) after working-capital movements and tax payments. • Capital expenditure reached RMB 40.40 million, largely for advanced materials R&D and coating production lines.

Strategic Developments • Advanced Materials: In February 2026 Yestar signed a US$5.35 million deal to acquire R&D and coating equipment aimed at entering the high-performance membrane materials field, leveraging expertise from its S2 film-camera project. • Proprietary Devices: The “Yes!Star” S2 film camera completed functional testing and is scheduled for commercial launch, positioned as a future growth driver. • Non-medical diversification, including industrial imaging films and colour photographic paper, contributed 19.6 % of total revenue and delivered solid cash flow.

Industry & Outlook China’s IVD market contracted 10 % in 2025 to RMB 108 billion under VBP and DRG/DIP reforms; sector growth is expected to normalise to a 5 % CAGR through 2030, reaching roughly RMB 140 billion. Management plans to mitigate near-term reimbursement pressures by focusing on higher-margin customers, accelerating differentiated R&D, and expanding into advanced materials.

Corporate Actions • Continued buy-out of minority stakes: An additional 12.1 % interest in Guangzhou Shengshiyuan Trading Co., Ltd. was acquired during the period, reducing remaining minority ownership to 5.7 %. • A non-core subsidiary, Guangzhou Shengshiyuan, was approved for voluntary liquidation in June 2026. • No share options were granted before the scheme’s expiry in September 2023; no new option scheme has been adopted. • No interim dividend for 1H 2026 (1H 2025: nil).

Governance & Compliance Yestar Healthcare remained in full compliance with Hong Kong Listing Rules and Corporate Governance Code provisions during the period. The Audit Committee reviewed the unaudited interim results, confirming consistency with applicable accounting standards and adequate disclosure.

Key Figures (1H 2026 vs 1H 2025) • Revenue: RMB 661.61 million vs RMB 802.63 million • Gross Profit: RMB 144.80 million vs RMB 133.74 million • Net (Loss)/Profit attributable to owners: –RMB 3.17 million vs RMB 5.76 million • EPS (basic): –RMB 0.14 cents vs RMB 0.25 cents • Cash & Equivalents: RMB 194.44 million (end-2025: RMB 234.36 million) • Total Assets: RMB 1.13 billion; Total Equity: RMB 406.27 million

Yestar Healthcare enters the remainder of 2026 focused on navigating policy-driven price pressures, executing its advanced materials expansion, and bringing its S2 film camera to market to restore growth momentum.