New Century Healthcare Holding Co. Limited (NC Healthcare) reported a sharp deterioration in first-half 2026 results as shrinking paediatric demand and a sizeable provision linked to frozen bank accounts pushed the group deeper into the red.

Revenue for the six months to 30 June 2026 dropped 18.2% year on year to RMB 248.96 million, led by a 20.0% slide in paediatric income to RMB 204.58 million. Paediatric outpatient visits fell 19.7% to 70,699, while inpatient admissions declined 17.1% to 2,197. Obstetrics & gynaecology revenue slipped 9.7% to RMB 40.92 million amid a 22.6% reduction in related inpatient cases.

Group gross profit contracted 31.7% to RMB 61.20 million, driving the margin down to 24.6% from 29.4% a year earlier. Selling expenses eased 18.3% to RMB 27.71 million, and administrative costs were trimmed 6.9% to RMB 54.98 million. Nevertheless, a RMB 62.13 million provision booked in connection with the freezing of RMB 217.50 million in bank deposits by the Beijing Mentougou Supervisory Committee (linked to an investigation of a cooperative partner) weighed heavily on results.

Loss attributable to owners widened to RMB 85.0 million from RMB 65.23 million in H1 2025, while total net loss reached RMB 101.44 million versus RMB 58.81 million previously. Management recognised a RMB 9.22 million impairment on receivables—largely from related parties—compared with RMB 1.57 million a year ago.

Operating cash outflow was RMB 215.13 million, reversing an inflow of RMB 4.84 million in the prior-year period, largely reflecting the frozen funds. Cash and cash equivalents fell 73.3% to RMB 61.53 million, though the group remains debt-free. Net current liabilities stood at RMB 20.70 million as of 30 June 2026; management expects release of the restricted cash within 12 months and continues to prepare financial statements on a going-concern basis.

Capital expenditure was curtailed to RMB 1.33 million, down 75.5% year on year. No significant investments, acquisitions, disposals or borrowings were recorded during the period.

Looking ahead, NC Healthcare plans to widen cooperation with commercial insurers, introduce tiered membership cards, expand paediatric subspecialties and streamline staffing. The board did not declare an interim dividend.

The interim results have been reviewed by PricewaterhouseCoopers and the board’s Audit Committee.