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Yunkang Group Announces First Interim Results Since Listing, Net Profit Rises 50% to RMB234 Million

HONG KONG, Aug 12, 2022 – (ACN Newswire) – Yunkang Group Limited (“Yunkang” or the “Group”; Stock Code: 2325), a respected medical operation services provider in China, has announced its first interim results for the half a year ended 30 June 2022 (the “Reporting Period”) since its listing. Driven by favorable government policies promoting healthcare in China, the three business segments of the Group, including Diagnostic Outsourcing Services, Diagnostic Testing Services for Medical Institution Alliances, and Diagnostic Testing Services for Non-Medical Institutions have achieved rapid growth, with total revenue increasing by 81.9 % year-on-year to RMB1,378.7 million. Gross profit also increased by 68.6% to RMB651.1 million weighed against exactly the same period this past year, and net profit rose by 50.0% to RMB234.4 million, establishing a fresh high within exactly the same responding period.

Business Review

High-quality growth of three business segments and continuous expansion of income and service levels

Through the Reporting Period, revenue from diagnostic outsourcing services rose 40.8% to RMB680.4 million, as products involved with such areas as tumors, infectious diseases, and blood diseases were maintaining steady growth. The Group offers diagnostic outsourcing services to hospitals, other medical institutions and public institutions, alongside a large number of independent laboratories, including central laboratories, provincial comprehensive laboratories and regional rapid response laboratories nationwide, covering all major clinical testing technology platforms (such as for example immunoassay, mass spectrometry, PCR, high-throughput sequencing, liquid chip, ultrastructural pathology and digital pathology remote diagnosis) with an increase of than 2,000 testing items and growing.

Diagnostic testing services for medical institution alliances mainly assists leading hospitals in establishing on-site diagnosis centers covering four main types (i.e. pathology, infectious disease, genetic disease and routine diagnostic tests). Revenue out of this segment rose by 166.2% to RMB650.7 million as at the Reporting Period. The increase was primarily because of the rise in amount of on-site diagnostic centers – climbing from 275 by the finish of 2021 to 350 by 30 June 2022, in addition to further improvements operating capabilities and expansion operating scope of the on-site diagnostic centers after preliminary construction and operation, leading to rapid growth in average revenue of the machine on-site diagnostic centers. By 30 June 2022, the semi-annual average revenue of the on-site diagnostic centers was RMB1.9 million, weighed against a full-year average revenue of RMB2.2 million in 2021. Diagnostic testing services for medical institution alliances represent an essential operating segment of the Group, accounting for a growing proportion of the Group’s total revenue, rising from 32.2% of total revenue for the half a year ended 30 June 2021 to 47.2% of total revenue for the half a year ended 30 June 2022.

Revenue generated from the diagnostic testing services for non-medical institutions segment increased by 56.7% to RMB47.6 million, primarily because of the significant upsurge in demand for COVID-19 studies by individual customers and non-medical institution customers amid the ongoing COVID-19 epidemic.

Industry Potential

The entire year 2022 has witnessed continuous and strengthening support on the policy front. The 2022 Government Work Report has drawn focus on the necessity to continue promoting hierarchical diagnosis and treatment and improve the order of treatment; expedite the building of national and provincial regional medical centers; promote the extension of quality medical resources to cities and counties; and enhance the capacity of primary disease prevention and treatment, in order that people might have convenient usage of better healthcare services. The Outline of the Fourteenth Five-Year Arrange for the National Economic and Social Development and the Long-Range Objectives Through the entire year 2035 of the People’s Republic of China, released in March 2022, has remarked that deepening reform of the medical and health system ought to be focused. It clearly specifies that reforms, such as for example establishing today’s hospital management system, expanding the capability of quality medical resources and balancing regional presence ought to be expedited. The Outline also clearly states that the capability of public health services ought to be significantly enhanced, and the grade of medical and health services should achieve continuous improvement by 2025. Furthermore, the capability of primary medical and health services ought to be continuously improved, the comprehensive and full-cycle health services system ought to be gradually enhanced, and the landscape for hierarchical diagnosis and treatment ought to be gradually established.

With some supportive policies and a range of subsequent national policies for promoting a well balanced economy set to successively enter into effect, the healthcare service market in China will possess tremendous growth potential. In accordance with a Frost & Sullivan Report, the full total healthcare service market in China is likely to reach RMB7,519.6 billion by 2025, which represents a CAGR of 9.1% from 2020 to 2025. Profiting from the introduction of supportive policies, and growing knowing of healthcare on the list of population, how big is the diagnostic testing services for medical institution alliances market in China is likely to grow to RMB5,903.4 million in 2025, from RMB2,200.9 million in 2020, representing a CAGR of 21.8%, hence will show tremendous work at home opportunities to the Group.

Development Strategy

Continue steadily to expand and strengthen medical institution alliance network

On the next couple of years, the Group will primarily concentrate on pathology, genetic and infectious disease laboratories for medical institution alliances and additional enhance their precision medicine capability, expanding and strengthening its medical institution alliance network. As at 30 June 2022, there have been a complete of 350 on-site diagnostic centers in hospitals. Simultaneously, the Group currently has nearly 90 ongoing projects involving on-site diagnostic centers with hospitals which have yet to commence operation. For several hospitals that not now have diagnostic capacities, the Group intends to greatly help them improve, manage, and operate such laboratories.

The Group also plans to determine increased sales and customer support representative offices make it possible for its sales and marketing and after-sales customer support personnel to more closely connect to customers and develop stronger and deeper business relationships. This might also facilitate better knowledge of customers’ needs and design and offer answers to meet such needs, which enable the Group to keep its market position.

Expand portfolio of diagnostic capabilities

The Group plans to expand its portfolio of diagnostic capabilities, specifically, for tumors, genetic diseases, infectious diseases and pharmacogenetics, hence, it’ll seek to help expand enhance its diagnostic testing technologies, upgrade its equipment and recruit more personnel as appropriate to aid the expansion. Because the Group expands its diagnostic capabilities, in addition, it plans to advertise its services to more non-medical institution customers, such as for example corporations and government agencies, in order to enhance its capability to provide omni-scenario medical operation services for customers.

The Group believes that precision medicine is a growing trend in the healthcare industry as increasingly more patients seek customized medical solutions. Diagnostic testing is vital to improve precision medicine as accurate diagnostic testing will enable physicians to comprehend the characteristics of the patients to customize their treatment solution. Through continued expansion of its capabilities, the Group endeavors to utilize hospitals to supply precision medicine answers to patients.

Continue steadily to upgrade and enhance operational capabilities

The Group plans to strategically develop small-scale self-operated independent clinical laboratories (ICLs) in selected regions and regions of China, either close to the Group’s major customers or predicated on market needs, with the purpose of digitalizing diagnostic testing and developing technical and os’s to aid its operations. To be able to further enhance operational capabilities, the Group may consider acquiring or buying companies which have synergistic businesses with it, such as for example upstream companies engaged in advanced diagnostic techniques, molecular biology, biotechnology and their clinical applications.

Yunkang Group Limited (Stock Code: 2325)

Yunkang Group is really a leading medical operation company in China, which began to provide standardized medical diagnostic services to medical institutions at all levels as soon as 2008. Leveraging its professional diagnostic capabilities and the nationwide service network of integrated healthcare systems, Yunkang has gradually grown to become medical operation service platform. Meanwhile, Yunkang is really a medical operation company in China supplying a full suite of diagnostic testing services which are diagnostic outsourcing services and diagnostic testing services for medical institution alliances. Yunkang provides diagnostic services through on-site diagnostic centers to collaborative hospitals in the integrated healthcare systems in China, and assists them in improving their clinical diagnosis capabilities through co-developing diagnostic centers. Up to now, Yunkang has successfully provided professional services to 350 medical institution alliances. By June 30, 2022, the hospitals we collaborated with were located across 31 provinces and municipalities in China.

Topic:News release summary

Source: Yunkang Group Limited

Sectors:Healthcare & Pharm

From the Asia Corporate News Network

Copyright 2022 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

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