SIPAI HEALTH (00314) achieved substantial improvement in performance in the first half of the year, with a profit attributable to the owners of the parent company reaching 43.294 million yuan and a gross margin increasing to 20.1%.

SIPAI HEALTH (00314) announced its mid-year performance for 2026, with total revenue of approximately 740 million yuan, net profit of 42.924 million yuan under International Financial Reporting Standards, and profit attributable to shareholders of the parent company amounting to 43.294 million yuan, all of which represent a turnaround to profitability compared to the previous year. The overall gross profit margin rose from 14.4% in the same period of 2025 to 20.1%, an increase of 5.7 percentage points year-on-year; the net cash outflow from operating activities narrowed from 63.5 million yuan in the same period of 2025 to 26.6 million yuan, indicating further improvement in operating cash flow. The aforementioned results demonstrate a substantial improvement in the group's core operational performance. The business of corporate insurance services and support for physician research continues to grow, with the revenue share of the high-margin core business further increasing. The ongoing structural adjustment of the pharmacy and other low-margin businesses is being actively advanced, marking a transition of the group's strategic transformation from a phase of business adjustments to one of profit realization. Recently, the group has actively reduced the scale of its low-margin pharmacy business and certain non-core businesses, reallocating resources towards corporate insurance services, corporate health management, and support for physician researchcore businesses with greater long-term growth potential and profitability. During the reporting period, the corporate insurance service business continued to experience rapid growth, further expanding its scale of operations and customer coverage. As of June 30, 2026, the group managed approximately 1.17 billion yuan in premiums, an increase of about 35% compared to the same period in 2025; the number of corporate clients reached 693, an increase of 74 from 619 at the end of 2025; the number of serviced members reached approximately 2.13 million; and the medical and pharmaceutical service network covered over 300,000 service points. In the first half of 2026, revenue from corporate insurance services was 58.9 million yuan, a year-on-year increase of 37.7%. Corporate insurance services have become the main driver of growth, revenue structure optimization, and profitability improvement for the group. In the first half of 2026, revenue from the physician research assistance business was approximately 250 million yuan, a year-on-year increase of 16.0%. As of June 30, 2026, a total of 1,268 projects had been completed, with 925 projects currently in execution. With its professional service capabilities, the group has gained high recognition from physicians and leading pharmaceutical companies both domestically and internationally, serving all ten publicly listed pharmaceutical companies in China's innovative drug research and development sector, achieving a 100% retention rate among the top ten clients during the reporting period. Looking ahead to the second half of 2026 and beyond, the group will adhere to its established strategic direction, aiming to become a leader in the field of commercial health insurance and corporate insurance brokerage in China. Focusing on three development pillars: organic growth, professional talent acquisition, and strategic mergers and acquisitions, the group will further consolidate and expand its core business advantages and promote a continuous increase in profitability.