ADICON HOLDINGS (09860.HK): Interim revenue rises 1.1% to RMB 1,284.8 million as gross margin recovers to 37.9%

NewTimeSpace News: On 14 September 2026, Adicon Holdings Limited (stock code: 09860) published its 2026 interim report, announcing unaudited results for the six months ended 30 June 2026. Revenue for the period was RMB 1,284.8 million, up approximately 1.1% from RMB 1,270.6 million a year earlier; gross profit was RMB 487.1 million, up approximately 7.2% from RMB 454.5 million, lifting gross margin to 37.9% from approximately 35.8%; profit for the period was RMB 35.3 million, up approximately 23.4% from RMB 28.6 million, of which RMB 32.0 million was attributable to owners of the parent; and basic and diluted earnings per share were RMB 0.04.

By segment, revenue from the co-build business rose 17.4% year on year with newly signed order value doubling, and during the period the Company entered into strategic cooperation agreements with Mindray Medical, Jointown, Weigao Shengji and Haier Biomedical covering co-building of regional laboratory centres, co-building of hospital clinical laboratories and sharing of supply chain resources; CRO revenue rose 34.9%, with Shanghai Jinjian signing a strategic cooperation framework agreement with Gan & Lee Pharmaceuticals in Beijing in June 2026, having participated in nearly 40 central laboratory projects for diabetes drug clinical trials and supported the listing of 19 drugs; specialty testing revenue rose 11.1%, including a 28.2% increase in the haematology product line; routine testing revenue rose 0.1%; and health check-up revenue fell 44.7%. The Group's tender wins for the first half of 2026 totalled RMB 690 million, up 100% year on year, across 516 tenders, up approximately 26.5%.

During the reporting period, the Company published a new five-year strategic plan establishing three core growth engines: organic growth, external acquisitions, and AI and ToC enablement. On AI, the Company entered into a three-year strategic cooperation framework agreement with Digital China in May 2026, launched the ADICON research suite AI research client in April 2026, signed a strategic cooperation agreement with Gaobo Medical Group in March 2026, and in December 2025 saw Hangzhou Adicon Medical Laboratory Centre sign a cooperation agreement with Huawei Cloud Computing Technologies, releasing the "Wenyi" medical large model and several agent solutions, while its AI medical insurance assistant has completed multiple rounds of verification at several medical institutions. On capacity, the Company's northern capacity centre was established in Jinan in May 2026 with total investment of RMB 100 million and gross floor area of nearly 7,200 sq m, planned to house a matrix of eight specialised laboratories. As at the end of the reporting period, 18 group entities had obtained three-system certification and 25 laboratories had obtained ISO 15189 accreditation.

Financially, as at 30 June 2026, the Company's cash and cash equivalents were RMB 870.9 million, down approximately 21.1% from RMB 1,103.2 million as at 31 December 2025; its net cash position, being cash and cash equivalents plus pledged deposits less interest-bearing bank borrowings, fell 40.9% to RMB 309.0 million from RMB 566.7 million; the current ratio was 1.52 and the debt-to-equity ratio 0.77. Cost of sales for the period was RMB 797.6 million, down 2.3% year on year; selling and marketing expenses were RMB 210.9 million, up 7.4%; administrative expenses were RMB 130.2 million, up 15.6%; R&D expenses were RMB 49.5 million, down 9.8%; and income tax expense was RMB 27.3 million, up approximately 61.3%. As at 30 June 2026, the Company had 5,024 employees, and the Board does not recommend the payment of any interim dividend for the six months ended 30 June 2026. [View announcement](https://www1.hkexnews.hk/listedco/listconews/sehk/2026/0914/2026091400108_c.pdf).

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