China Resources Medical: Profits Dip Amid Leadership Changes

For the six months ended June 30, 2025, China Resources Medical Holdings reported a net profit of 374 million yuan, a 26.9% decrease year-over-year. Total revenue for the period was 4,524,803,000 yuan, down 9.1% from 4,976,334,000 yuan in 2024. This reduction was primarily attributed to a 7.4% decrease in hospital business revenue to 4,259 million yuan, driven by lower average medical insurance fees per visit and a scaling back of IOT business. Out-patient and emergency visits increased by 1.0%, while in-patient visits decreased by 3.9%.

The company declared an interim dividend of 0.05 yuan per share for 2025, equivalent to HK$0.0548 per share, payable on October 24, 2025. This dividend reflects the same per-share amount as the previous year. Meanwhile, the group's gearing ratio improved to 9.9% as of June 30, 2025, down from 10.8% at the end of 2024, reflecting proactive debt structure adjustments.

Significant legal proceedings related to the Yan Hua IOT Agreement are ongoing, with the company submitting a new case filing in June 2025 seeking termination of the agreement and compensation for breach of contract. Earlier enforcement payments of 209,480,000 yuan were received in February 2025. The company's board noted a deviation from CG Code C.2.1 as the chairman and chief executive officer roles are held by the same individual, YU Hai.