SR Medical Technology Company Limited (SR Medical) reported a HK$68.62 million loss for the six months ended 30 June 2026, reversing a HK$1.40 million profit a year earlier. The swing into the red followed a sharp rise in operating and finance costs, which offset solid top-line growth.

Revenue climbed 30.7% to HK$223.14 million (1H 2025: HK$170.72 million), driven by the first-time consolidation of Beijing Chunyu Tianxia Software Co., Ltd. (Doctor Chunyu), acquired in March 2026. The new digital healthcare services segment contributed HK$65.58 million, while revenue from property investment, operation and management slipped 7.7% year on year to HK$157.56 million.

Cost pressures were substantial: • Employee benefit expenses rose 47.5% to HK$59.60 million. • Utilities, repairs, maintenance and rental expenses increased 25.1% to HK$62.65 million. • Other operating costs jumped to HK$88.60 million from HK$19.70 million, reflecting the inclusion of the digital healthcare business and higher property-related outlays. • Finance costs expanded 47.9% to HK$90.45 million amid higher borrowings and interest expenses.

Loss before tax totalled HK$69.07 million, compared with a HK$4.01 million profit in the prior-year period. Loss attributable to shareholders was HK$70.60 million, versus a HK$2.09 million profit a year earlier, translating into a basic loss per share of HK2.18 cents (1H 2025: earnings of HK0.07 cent).

Balance-sheet metrics showed mixed movements: • Total assets increased 9.1% to HK$6.26 billion, mainly on the recognition of HK$238.90 million goodwill and HK$92.11 million intangible assets from the Doctor Chunyu acquisition, and a HK$207.05 million rise in investment properties to HK$4.89 billion. • Net assets edged up 3.5% to HK$2.17 billion. • Net current liabilities narrowed to HK$615.88 million (31 December 2025: HK$838.08 million). • Bank and other borrowings rose slightly to HK$2.91 billion, lifting the gearing ratio to 129.9% (31 December 2025: 126.8%). • Cash and cash equivalents stood at HK$118.86 million, while restricted cash totalled HK$112.19 million.

During the period SR Medical issued 100 million new shares on conversion of HK$80.00 million perpetual convertible bonds and 2 million shares from exercised options. No interim dividend was declared.

Strategic Focus Management signalled a pivot toward AI-driven digital healthcare, leveraging Doctor Chunyu’s 200 million registered users, 700,000+ contracted physicians and a medical data set exceeding 300 million records. The company plans to allocate more resources to technology R&D, expand public-health collaborations and consumer health services, and explore selective M&A to build an asset-light healthcare platform, while progressively reducing exposure to lower-yield property assets.