Hangzhou Diagens Biotechnology Co., Ltd. (Diagens) released its interim results for the six months ended 30 June 2026, highlighting robust topline momentum driven by model-as-a-service (MaaS) offerings alongside intensified research investment.
Revenue and Margins • Revenue rose 21.0% year on year to RMB108.69 million. • Model services contributed RMB94.54 million, up 101.1%, accounting for 86.9% of total revenue. • Medical imaging software and device sales fell 71.8% to RMB10.95 million amid delayed procurement cycles. • Group gross profit increased 14.0% to RMB80.50 million; gross margin softened to 74.1% from 78.6% due to a higher share of hardware-integrated SCTI deliveries and computing-power costs.
Costs and Earnings • R&D expenditure climbed 67.4% to RMB64.12 million, reflecting investment in iMedImage® foundation-model upgrades, platform build-out and pipeline development. • Administrative expenses reached RMB37.78 million (up 39.8%), including listing-related costs; selling and distribution expenses were RMB15.94 million (up 48.4%). • Net loss widened to RMB55.88 million from RMB1.34 million in 1H25, mainly due to higher R&D, operating and finance expenses. • Net impairment provisions on financial assets rose to RMB10.82 million, linked to expanding receivables. • Exchange losses totalled RMB12.70 million, pushing other expenses to RMB13.19 million.
Liquidity and Capital Structure • Net proceeds of HK$719.80 million (≈RMB654.59 million) were raised via the March 2026 Hong Kong IPO; cash and cash equivalents surged to RMB654.59 million from RMB12.87 million at end-2025. • Interest-bearing bank loans totalled RMB50.00 million; debt-to-asset ratio improved to 13.0% (23.1% at 31 December 2025). • Net current assets stood at RMB701.28 million; inventories increased to RMB37.86 million on anticipated demand.
Operational Milestones • AI AutoVision® obtained Class III registration from China’s NMPA in May 2026, entering commercialization phase; U.S. FDA submission completed. • Model portfolio expanded to 158 projects across 99 hospitals (65 tertiary-A), covering 43 organs and 61 indications. • Launches included iMedStudio™ (intelligent annotation workstation) and iMedLoop™ (end-to-end imaging AI production platform). • DoctorBench® evaluation system debuted, ranking iMedImage® first overall in initial benchmarks.
Capital Deployment • 49% of IPO proceeds earmarked for AI AutoVision® R&D and commercialization; 6M26 utilisation reached HK$26.30 million. • Remaining balance of HK$675.80 million allocated to model pipeline, foundation-model enhancement, China and overseas market expansion, and strategic investments.
Outlook and Strategy Management targets scalable commercialization by advancing the iMedImage® foundation model, enhancing the iMedLoop™ platform, productizing model services, and accelerating regulatory-grade product rollout, while maintaining disciplined cost control and strengthening cash conversion.