HK Stock Connect Insight | DIAGENS-B (02526.HK): 778,962 options and RSUs granted, southbound holding ratio rises to 0.52%

NewTimeSpace News: Hangzhou Diagens Biotechnology Co., Ltd. (DIAGENS-B, 02526.HK) announced on October 20 that, under the 2026 share incentive scheme, it had granted a total of 778,962 share awards to 23 employee participants, comprising 238,300 options and 540,662 restricted share units, together representing approximately 0.88% of the issued H shares excluding treasury shares. The options carry an exercise price of HK 230.44 per share, above the closing price of HK223.00 on the grant date, with an exercise period of ten years from the grant date; the restricted share units carry a purchase price of RMB1.00 per share, and the vesting period of both awards ranges from 5 to 48 months, with a clawback mechanism attached.

On the Hong Kong market, DIAGENS-B was quoted at HK$192.60 as at 14:40 on October 28, down 2.63%. On southbound flows, DIAGENS-B was added to the Stock Connect list effective September 7, 2026, following the Shanghai Stock Exchange notice Zhongtouxin [2026] No. 50 published on September 4. The Company's voluntary announcement of August 24 also confirmed that its selection by Hang Seng Indexes Company as a constituent of 23 indexes, including the Hang Seng Composite Index with effect from September 7, fulfilled the eligibility criteria for Southbound Trading.

According to Choice data, southbound holdings rose from 157,300 shares, or 0.17% of issued shares, on the first disclosure day of September 9, with the largest single-day net addition of 67,700 shares recorded on October 12, before easing from their highs. The latest disclosure date, October 27, showed 465,700 shares, or 0.52%, an increase of 0.35 percentage points over the first disclosure day.

On fundamentals, the Company reported interim results for the six months ended June 30 on August 7. Revenue of RMB108.69 million was up 21.0% year on year and gross profit of RMB80.50 million was up 14.0%, with the gross margin easing from 78.6% to 74.1%. By business line, model service revenue of RMB94.54 million was up 101.1% year on year and accounted for 87.1% of total revenue, while revenue from medical imaging software and medical devices of RMB10.95 million was down 71.9% from RMB39.01 million a year earlier. Research and development costs of RMB64.12 million were up 67.4%, equivalent to about 59.0% of revenue; administrative expenses were RMB37.78 million and selling and distribution expenses RMB15.94 million. Loss for the period widened from RMB1.34 million in the prior year to RMB55.88 million, which the Company attributed mainly to listing-related expenses, increased investment in computing power and higher selling and administrative expenses, together with a year-on-year decline in other revenue and gains. Cash and cash equivalents stood at RMB654.6 million at period end, up sharply from RMB12.9 million at the end of 2025, mainly on proceeds from share issuance and an increase in interest-bearing bank borrowings.

On institutional research, Kaiyuan Securities noted that the Company's cooperation with Anzhen'er helps to explore an imaging cloud service model of "examination at the primary level, identification in the cloud and review at the provincial level", and supports the implementation of a recurring model-invocation revenue model priced on Token consumption. If primary-level medical institutions are subsequently brought onto the platform at scale, DIAGENS-B could extend its revenue mix from traditional hardware, software and project-based delivery toward recurring model-invocation service revenue, enhancing the scalability and replicability of its medical imaging AI business model.