HANGZHOU TIGERMED CONSULTING (300347) Q2 2026 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2026, rose 14.1% YoY to RMB3,707.6 million, with strong growth in both domestic and overseas markets.

• Net profit attributable to owners swung to a loss of RMB413.2 million from a profit of RMB383.3 million YoY, mainly due to significant fair value losses on financial assets.

• Adjusted net profit (excluding extraordinary items) increased 31.8% YoY to RMB277.7 million, with margin improving to 7.5%.

• The company maintained its leading market share in China's clinical outsourcing market and continued rapid overseas expansion.

Financial highlights

• Gross profit increased 4.3% YoY to RMB1,020.5 million, but gross margin declined to 27.5% from 30.1% due to lower margins in the CTS segment.

• Operating costs rose 18.2% YoY, outpacing revenue growth.

• Net cash from operating activities grew 4.2% YoY to RMB425.8 million.

• Investment income turned negative, with a RMB2.4 million loss versus a RMB233.0 million gain YoY, and fair value losses on financial assets reached RMB443.3 million.

• Basic and diluted EPS were both -0.48 RMB, down from 0.45 RMB YoY.

Outlook and guidance

• The company expects continued improvement in domestic innovative drug clinical operations and sustained overseas growth, especially in Australia and New Zealand.

• Ongoing investment in AI, digitalization, and global expansion is planned, with a focus on enhancing integrated clinical R&D service capabilities.

• The CRO industry is entering a new cycle of demand-side recovery, with long-term structural growth expected.