Guanze Medical’s unaudited results for the six months ended 30 June 2026 show a sharp reversal into the red, with a net loss of RMB39.13 million versus a RMB3.44 million profit a year earlier. The downturn stemmed from a steep fall in high-margin software revenue, higher input costs and a jump in research & development outlays.
Revenue slipped 11.0% year-on-year to RMB28.43 million. Software sales, previously buoyed by one-off hospital upgrade projects, collapsed 99.0% to just RMB0.09 million. By contrast, sales of medical imaging film products and related cloud services rose 34.1% to RMB28.35 million, supported by larger wholesale orders, and now account for 99% of group turnover.
Cost of sales climbed 43.8% to RMB26.64 million, driven by higher per-unit film costs, increased depreciation and share-based payment charges, compressing gross margin to 6.3% from 42.0%. Gross profit contracted to RMB1.79 million (1H 2025: RMB13.38 million).
Operating expenses surged: • Selling & distribution costs rose 42.1% to RMB8.13 million. • Administrative expenses advanced 72.1% to RMB11.69 million. • R&D spending quintupled to RMB23.12 million as the company intensified investment in traditional films, cloud-film solutions, PACS upgrades and new product development (mobile DR and electronic endoscopes).
Other income dropped 45.2% to RMB3.35 million due to lower government subsidies, while a RMB3.32 million gain from disposing of previously repurchased shares partly cushioned the decline. Finance costs edged down 32.3% to RMB0.20 million.
Cash and cash equivalents stood at RMB18.37 million, down RMB3.56 million from end-2025, as operating activities consumed RMB7.56 million. Net current assets totalled RMB150.45 million. Interest-bearing bank loans increased to RMB16.38 million, lifting the gearing ratio to 8.2% (end-2025: 5.5%).
Capital expenditure reached RMB2.81 million, primarily for equipment purchases. Unutilised IPO proceeds of RMB20.40 million remain earmarked for enhancing cloud services, with full deployment targeted by December 2027.
Board changes during the period included the appointment of Ms Jiang Zeman as Chair and CEO, succeeding Mr Meng Xianzhen, who remains an executive director. Two other directors resigned, and governance committee memberships were updated accordingly.
Management reiterated its strategy to expand market presence in Shandong’s medical imaging sector, accelerate cloud-based service offerings, broaden product lines and pursue new healthcare opportunities, while tightening risk and financial controls. No interim dividend was declared.