Shanghai Runda Med Tech Co

Runda Medical released its 2026 interim report, with total operating revenue of 3.194 billion yuan and net profit attributable to the parent company of minus 87.867 million yuan, an increase of 32.7852 million yuan compared with the same period last year, narrowing the loss. Net cash inflow from operating activities was 273 million yuan, up 77.69 percent year-on-year, achieving growth for four consecutive years. The company's asset-liability ratio was 63.13 percent, and gross margin was 24.49 percent, up 3.55 percentage points from the same period last year. Diluted earnings per share were minus 0.15 yuan, and the number of shareholders was 56,200.

Rundu Medical released its 2026 interim report on August 27. First-half operating revenue was 3.194 billion yuan, down 8.0% year on year. Net loss attributable to the parent company was 87.87 million yuan, narrowing from a loss of 121 million yuan in the same period last year. Net loss attributable to the parent company after deducting non-recurring items was 80.67 million yuan, compared with a loss of 134 million yuan a year earlier. Net operating cash flow was 273 million yuan, up 77.7% year on year. Second-quarter revenue was 1.68 billion yuan, down 6.9% year on year, and net loss attributable to the parent company was 34.31 million yuan, narrowing from a loss of 51.39 million yuan in the same period last year. The company said that under the impact of policies such as domestic centralized procurement price cuts and package unbundling, product sales volume and hospital-end prices fell, leading to lower revenue, but the loss narrowed through optimizing the business structure and controlling the expense ratio. In the industrial segment, overseas market expansion for the glycated series products was strong, with revenue up 26.18% year on year.

Runda Medical disclosed its reply to the annual report inquiry letter for 2025, explaining its first annual loss since listing, revenue decline, and debt repayment pressure. The company achieved operating revenue of 6.999 billion yuan in 2025, down 15.80 percent year-on-year, with a net loss attributable to the parent of 548 million yuan, swinging from profit to loss. The main reasons were the impact of centralized procurement price cuts and DRG/DIP payment reforms on the core IVD distribution business, leading to lower product prices at hospitals while fixed expenses did not decrease simultaneously. Additionally, the company made a credit impairment provision of 176 million yuan on accounts receivable and a goodwill impairment of 209 million yuan. The loss was concentrated in the fourth quarter, with a single-quarter net loss attributable to the parent of 386 million yuan, accounting for over 70 percent of the full-year loss. Revenue and gross margins of the three core IVD distribution segments declined simultaneously. Reagent agency business revenue was 4.872 billion yuan, down 12.92 percent year-on-year, with gross margin falling 4.62 percentage points. Integrated and regional testing business revenue was 1.856 billion yuan, down 24.07 percent year-on-year, with gross margin decreasing 2.98 percentage points. Third-party laboratory business revenue was 110 million yuan, down 16.73 percent year-on-year, with gross margin plunging 32.37 percentage points. The company's interest-bearing debt stood at 6.743 billion yuan, of which 6.017 billion yuan will mature within one year. Borrowings of 3.245 billion yuan due in the first half of 2026 have been successfully repaid and refinanced. Going forward, the company will coordinate debt repayment through bank credit lines and support from state-owned shareholders.

Runda Medical disclosed its earnings forecast, expecting a net loss attributable to the parent company of 78.6 million to 94.3 million yuan for the first half of 2026, compared with a loss of 121 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 72.2 million to 86.6 million yuan, compared with a loss of 134 million yuan a year earlier. The company's main business includes comprehensive services and industrial segments. The loss is mainly due to the deepening implementation of policies such as centralized procurement of in-vitro diagnostic products, which led to a year-on-year decline in revenue scale, although the decline has narrowed compared with the same period last year. At the same time, fixed expenses such as employee compensation, depreciation, and amortization could not be reduced simultaneously. The company has taken cost-cutting and efficiency-enhancing measures, and operations are gradually improving. The net loss margin has narrowed compared with the same period last year, and net cash flow from operating activities during the reporting period increased by more than 50 percent compared with the same period last year.