The year 2025 marked a pivotal period of strategic transformation and enhanced profitability for CONCORD HC GP, a leading provider of high-end oncology medical services. The company's latest annual performance announcement for 2025 reveals that its core hospital business experienced significant growth, primarily driven by the advanced technology of proton therapy. This successfully propelled the group to achieve a gross profit for the first time since its listing, signaling a new phase in the company's development.
Financially, structural optimization led to a clear profitability inflection point. According to the 2025 results, CONCORD HC GP reported total annual revenue of 460 million yuan, a year-on-year increase of 18.4%. The most notable performance came from the hospital business segment, which generated revenue of 373 million yuan, surging 37.4% year-on-year and now accounting for 81.2% of total revenue. More importantly, the group achieved a gross profit of 3.2 million yuan, a dramatic reversal from a gross loss of 6.7 million yuan in the same period last year. The gross profit margin improved from -17.3% to 7.0%. This milestone of turning a loss into a profit is largely attributed to the full operational status of the proton therapy center at its Guangzhou Concord Cancer Hospital and the effectiveness of cost-control measures.
The core driver of the company's performance growth is clearly its heavily invested proton therapy business. Proton therapy, often called the pinnacle of cancer radiotherapy, can precisely target tumors while maximally protecting surrounding healthy tissue. The proton center at Guangzhou Concord Cancer Hospital commenced full clinical operations in December 2024. As the first operational proton therapy system in Southern China, it is equipped with four 360-degree rotating gantry treatment rooms, with a theoretical annual capacity of treating 2,000 cases. At an estimated cost of approximately 300,000 yuan per treatment course, the potential annual revenue at full capacity exceeds 600 million yuan. The center began generating returns quickly; in July 2025, it completed the nation's first proton therapy treatment for choroidal malignant melanoma and ranked third nationally in industry rankings. By its first anniversary at the end of 2025, its services had reached patients from 31 provinces in China and over 20 countries worldwide, with patient ages ranging from 1 to 91 years old. This demonstrates strong technical barriers and a powerful brand attraction effect, providing the hospital business with stable cash flow and revenue growth.
Furthermore, leveraging its international footprint, AI capabilities, and the mature cross-border medical service capabilities of Guangzhou Concord Cancer Hospital, the company has formulated a strategy focused on exporting medical services combined with AI. In 2025, the hospital became a significant choice for international cancer patients seeking cross-border treatment, attracting patients from countries including Iraq, Indonesia, and Bangladesh. These patients, suffering from conditions such as meningioma and chordoma, primarily sought precision treatment solutions like proton therapy and international cutting-edge drugs. The company has also formally signed a memorandum of understanding with a public hospital in Surabaya, Indonesia, to jointly build a comprehensive oncology service center. This global export of "Medical Services + AI" lays the foundation for the next stage of performance growth and sustained profitability.
To overcome the market barrier of high costs associated with proton therapy, CONCORD HC GP is actively building an innovative payment ecosystem. The company has partnered with insurance providers to include proton therapy in their high-end medical insurance products and successfully included it in the coverage of a local public health insurance scheme, significantly reducing patients' out-of-pocket expenses and improving treatment accessibility.
Concurrently, the company is deepening its "AI + Healthcare" strategy. In May 2025, it independently developed and deployed the world's first large language model specifically for the vertical field of proton therapy. This model integrates data from nearly ten thousand high-quality radiotherapy cases and can assist in clinical decision-making, thereby not only enhancing internal operational efficiency but also strengthening its technological leadership in the field of precision radiotherapy.
In conclusion, CONCORD HC GP's 2025 performance validates the effectiveness of its proton therapy strategy. The growth of the hospital business and the turnaround to gross profitability indicate that the company has successfully navigated the challenging phase of heavy asset investment and entered a period of "capability realization." Against a backdrop of severe imbalance between the supply and demand for oncology medical services, CONCORD HC GP has established a differentiated competitive moat through its scarce proton therapy assets, partnerships with top-tier international medical institutions, and AI technology empowerment. Although achieving full net profitability will still require time, the emergence of this financial inflection point undoubtedly adds a crucial and positive chapter to its long-term value investment story.