Mega Genomics Limited reported interim results for the six months ended 30 June 2026, highlighting rapid top-line expansion driven by a broadened product mix but tempered profitability.
Revenue Performance • Revenue rose to RMB 192.50 million, up 136.8% year-on-year, propelled by ancillary services and related products, which leapt to RMB 109.82 million from just RMB 0.08 million a year earlier. • Consumer genetic testing services contributed RMB 76.83 million (-flat at +1.3%), while cancer screening services delivered RMB 5.85 million (+9.7%).
Profitability • Gross profit inched up 5.9% to RMB 63.68 million. • Gross margin narrowed sharply to 33.1% from 74.0%, reflecting the lower-margin contribution of ancillary offerings and broader product expansion. • Net profit slipped 9.2% to RMB 24.75 million, with net margin sliding to 12.9% from 33.5%. • Cost of sales escalated 509.3% to RMB 128.82 million, largely tied to materials and operational costs for the new product lines.
Cash Flow and Liquidity • Net cash from operating activities reached RMB 16.80 million, aided by stronger collection of trade receivables. • Cash and cash equivalents edged up 2.2% to RMB 424.56 million at period-end; the current ratio stood at 3.6 (31 Dec 2025: 15.2). • Capital expenditure remained modest at RMB 0.93 million, focused on equipment and intangible assets.
Balance Sheet and Indebtedness • Total bank loans decreased to RMB 17.70 million (31 Dec 2025: RMB 19.70 million); lease liabilities were RMB 10.83 million. • No material contingent liabilities or significant investments were reported.
Shareholder Returns • No interim dividend was declared. • The company repurchased 25,400 shares in June for approximately HK$0.16 million, retaining them as treasury shares.
Operational Highlights • Over 26 million genetic tests have been performed cumulatively. • Service coverage spans healthcare institutions in more than 340 Chinese cities, supplemented by e-commerce and online healthcare partnerships. • R&D initiatives include ApoE and MTHFR gene testing kits, both registered with China’s National Medical Products Administration in 2025.
Outlook Management plans to: 1) deepen penetration in China’s consumer genetic testing market, 2) enhance automation and diversify cancer screening offerings, 3) expand R&D capacity and product portfolio, and 4) pursue selective geographic expansion and acquisition opportunities.
Despite margin compression, the period underscores Mega Genomics’ strategy to scale revenues through product diversification while laying groundwork for long-term growth.