As cost reduction and efficiency enhancement become the main theme of the medical testing industry, leading companies in ICL are seeking breakthroughs. Compared to its peers, ADICON HOLDINGS (09860) has demonstrated stronger growth momentum during the industry's winter—its bid amount increased significantly by 106% year-on-year, with a growth rate notably higher than the industry average. What has it done right?
On August 22, ADICON HOLDINGS released its mid-term report for 2025, achieving significant growth in key sectors and showcasing exceptional risk resistance and growth resilience against the backdrop of profitability pressures faced by its peers, thanks to its diversified business layout and lean operational management. The value code of ADICON HOLDINGS goes far beyond traditional testing services.
<h2>Resilience of Diversified Business Highlights, New Growth Points Continue to Gain Momentum</h2>
Since 2025, the ICL industry has faced overall pressure due to macroeconomic fluctuations and adjustments in medical policies. However, ADICON HOLDINGS has effectively responded to uncertainties during the industry's winter with its diversified business layout and resilient operational performance, demonstrating strong risk resistance. During the period, the company's total revenue was approximately 1.27 billion yuan (RMB, the same below). In a market environment where many peers experienced revenue declines of over 20%, ADICON still exhibited strong operational resilience, maintaining a steady performance.
According to Zhitong Finance APP, behind this steady performance is ADICON HOLDINGS' more balanced business structure and more efficient strategic execution compared to its peers.
During the period, the company's co-construction business revenue grew by 30% year-on-year, reaching a historical high, with a compound annual growth rate of 48% over the past four years. This is not merely a simple quantitative increase but a reflection of the barriers created by deep cooperation models. During the period, the company launched intensive cooperation projects with several large tertiary hospitals, and this &#34;deep binding&#34; means that the company has upgraded from a mere testing service provider to a strategic partner in hospital operation management, possessing high service barriers and strong customer stickiness. As the company continues to deepen strategic cooperation with high-quality medical institutions in the future, more industry-influential benchmark projects will gradually be implemented, further consolidating the company's business advantages.
The CRO business also performed strongly, with revenue increasing by 18% year-on-year, setting a new historical high and becoming a new growth curve for the company. During the period, the company not only consolidated its advantages in the diabetes field but, more importantly, captured over 50% market share in the golden track of NASH (non-alcoholic steatohepatitis) and made breakthroughs in solid tumor research, indicating that the company's cutting-edge diagnostic R&amp;D capabilities have been recognized by the market.
The special inspection business segment achieved a leap in capabilities through strategic acquisitions, fully acquiring the leading blood disease diagnostic company Yuande Youqin and its industrial chain companies, directly introducing core technologies, production capacity, and a batch of high-quality tertiary hospital client resources, laying a key foundation for establishing differentiated competitiveness in niche tracks in the future.
At the same time, the company has also achieved significant results in market expansion. During the reporting period, the number of bids won by the company increased by 51% year-on-year, and the bid amount surged by 106% year-on-year, with a growth rate far exceeding the industry average. Compared to peer companies, the newly formed bidding team of ADICON HOLDINGS has demonstrated excellent market penetration capabilities, becoming an important support for the company's counter-cyclical expansion
In the view of the Zhitong Finance APP, the company's rapid market expansion is backed by its extreme cost control. During the reporting period, the company achieved significant cost optimization through lean management: the reagent procurement cost decreased by nearly 13% year-on-year, the logistics cost per sample reduced by about 4%, and the clinical and pathological labor efficiency improved by 11% and 6%, respectively. This marks a shift in its operational model from scale-driven growth to quality and efficiency-driven growth, providing ample confidence and profit margins in price competition.
<h2>&#34;AI + Healthcare&#34; Deepening Advancement, Digital Intelligence Foundation Empowering the Future</h2>
Driven by the wave of digitalization, new generation information technologies such as big data and artificial intelligence are thriving and being widely applied. Enhancing the level of medical services and optimizing patient experience through digital and intelligent means has become the core direction of evolution in the healthcare industry. Multiple brokerages emphasize that &#34;AI + Healthcare&#34; is becoming an inevitable trend in industry development with unstoppable momentum.
In the context of the accelerated industrialization process of &#34;AI + Healthcare,&#34; ADICON HOLDINGS has long gone beyond traditional testing services in its business layout. With a forward-looking strategic vision, the company has keenly captured the opportunities for industry development and continuously promoted the deep integration and innovative application of artificial intelligence technology in medical business scenarios. Compared to its peers, the company is at the forefront of AI application implementation in the industry.
In the first half of this year, the company achieved fruitful results in the application of AI technology. Its AI-assisted imaging technology has been scaled up and has played a significant role in key areas such as cervical cancer and reproductive genetics, achieving efficiency levels 6-7 times that of human efforts, completing nearly 10 million assisted diagnoses, and providing solid support for high-throughput, standardized testing services. During this period, the company's intelligent assistant &#34;Ai Xiao Yi&#34; was officially launched, offering doctors a one-stop service that includes intelligent consultations and report interpretations, reconstructing the doctor-patient service experience. Meanwhile, the company's AI-enabled diagnostic system has also been upgraded, with the pathology report AI quality control system automatically correcting errors and the flow AI analysis platform generating reports in seconds, fundamentally &#34;reconstructing&#34; the accuracy and speed of the diagnostic process.
While achieving breakthroughs in AI technology, the company continues to solidify its digital infrastructure. The new generation LIMS system has been stably operating in 32 subsidiaries and has completed deployment in 18 new companies, with full coverage expected in the second half of the year, significantly enhancing operational coordination efficiency. Through multiple rounds of governance and standardization, master data management has initially integrated marketing data, and the construction of the master data platform will be completed within the year to fully support digital transformation.
In addition, leveraging over 20 years of accumulated medical testing data, the company has built an enterprise-level data warehouse with strict security classification management. Through deep cleaning and modeling analysis, it has launched multi-dimensional data intelligence products for internal decision-making and external services. Currently, the company is actively promoting the compliant commercialization of medical data assets, expanding cooperative ecosystems and innovative models, a layout that is ahead of most of its peers.
<h2>Summary</h2>
Overall, as the ICL industry accelerates towards integration, the industry landscape faces reshaping, and competition intensifies, ADICON HOLDINGS demonstrates superior growth resilience compared to its peers with its diversified business structure, lean operational capabilities, and leading AI layout. Compared to its peers, ADICON has a deeper layout in emerging business areas such as CRO and special testing, and is also at the forefront of AI technology application and data commercialization in the industry
Looking ahead to long-term development, the company has clarified a multi-dimensional growth path in its latest five-year plan: using the routine inspection sector as a development cornerstone, deeply cultivating customer development and retention, and solidifying the growth foundation; the special inspection sector will anchor on medical value, driving rapid growth through major projects; the CRO sector will seize industry opportunities, accelerating business expansion and contracts; the co-construction sector will upgrade supply chain and service capabilities, shaping differentiated competitive advantages. At the same time, the company will use mergers and acquisitions as a growth wing to absorb high-quality resources and accelerate the integration and synergy of various sectors.
From an investment perspective, combined with industry prospects, market position, and solid fundamentals, ADICON HOLDINGS has become one of the high-quality targets in the digitalization of healthcare that possesses both certainty and growth potential, expected to create sustainable long-term returns for investors

09860

ADICON HOLDINGS demonstrated strong growth capabilities in its mid-2025 report, with total revenue of approximately 1.27 billion yuan, a year-on-year increase of 106%. Against the backdrop of pressure in the medical testing industry, ADICON showcased exceptional risk resistance through its diversified business layout and efficient operational management. The company's deep cooperation with large hospitals has transformed it from a mere testing service provider into a strategic partner, with CRO business revenue increasing by 18% year-on-year

The mid-term report highlights a solid foundation, ADICON HOLDINGS deepens its layout of "AI + healthcare"