Hospital Corporation of China Limited reported interim revenue of RMB 732.77 million for the six months ended 30 June 2026, a 1.4% decline year-on-year, reflecting a deliberate reduction in pharmaceutical sales and greater emphasis on higher-margin medical services.

Adjusted gross profit grew 19.5% to RMB 185.18 million, while adjusted gross margin widened to 25.3% from 20.9%. Adjusted net profit increased 43.2% to RMB 101.10 million, lifting the adjusted net margin to 13.8% (H1 2025: 9.5%).

Statutory net profit fell 74.5% to RMB 42.96 million, primarily because the prior-year period included a RMB 165.18 million gain from the modification of convertible bonds, an item not repeated in 2026.

Cost discipline supported profitability: administrative expenses decreased 8.6% to RMB 56.99 million, aided by lower staff costs and professional fees. Operating profit before acquisition-related depreciation and amortisation advanced 29.9% to RMB 133.10 million.

Cash flow from operations almost doubled to RMB 80.27 million. Cash and cash equivalents stood at RMB 732.82 million, up from RMB 665.67 million at end-2025, while net current assets increased to RMB 533.60 million. The current ratio improved to 1.87 (31 Dec 2025: 1.62).

Total borrowings declined to RMB 60.00 million, and the net gearing ratio eased to 2.3%. Convertible bonds of RMB 969.70 million remain outstanding after maturity extensions to 30 September 2027. The group also maintains corporate and joint guarantees for hospital affiliates, covering up to RMB 277.00 million of bank facilities.

No interim dividend was declared. Management reiterated plans to deepen its “medical care, rehabilitation, elderly care and nursing” model, accelerate AI-enabled hospital management platforms, and target opportunities from China’s ageing demographics in the second half of 2026.