On August 26, Dian Diagnostics, a leader in IVD, officially disclosed its semi-annual report. The company achieved operating income of CNY 10.753 billion, an increase of 85.68% over the same period last year; net profit attributable to the parent was CNY 1.880 billion, an increase of 158.54% over the same period last year.

In the previous performance forecast, Dian Diagnostics expects a profit of 1.6 billion to CNY 1.9 billion in the first half of 2022, a year-on-year increase of 120.06%-161.32%. From this point of view, the company's performance in the first half of the year fell on the upper limit of the forecast.

Over 40% of revenue comes from the new crown business

According to public information, Dian Diagnostics is mainly engaged in medical diagnostic services and sales of IVD products.

In terms of business, in the first half of the year, the total revenue of Dian Diagnostics' diagnostic service business was CNY 6.952 billion, an increase of 154.10% over the same period last year. Among them, the revenue of new crown nucleic acid detection was CNY 4.748 billion, and the diagnostic service business income after excluding the revenue of new crown nucleic acid detection was CNY 2.204 billion, an increase of 17.55% over the same period last year.

The company's diagnostic product business achieved a total revenue of CNY 4.740 billion in the first half of the year, an increase of 41.32% over the same period last year; of which, the self-produced product business revenue was CNY 899 million, an increase of 314.29% over the same period last year; the channel product business revenue was CNY 3.841 billion, an increase over the same period last year. 22.46%.

This means that more than 40% of Dian Diagnostics' revenue in the first half of the year came from the new crown testing business, and the new crown testing business was also the "main force" of the company's performance in the first half of the year.

In addition, in the second quarter, Dian Diagnostics' new crown business revenue increased by 52% month-on-month. According to the first quarterly report, the company's new crown business revenue in the first quarter was CNY 1.881 billion. Based on this calculation, its new crown business revenue in the second quarter was CNY 2.867 billion.

While the new crown testing business drives performance growth, Dian Diagnostics has not escaped the industry "common problem" of rising accounts receivable.

According to the semi-annual report, as of June 30, 2022, the balance of accounts receivable of Dian Diagnostics was CNY 10.673 billion, exceeding CNY 10 billion, accounting for 51.15% of total assets. As of the end of 2021, the accounts receivable of Dian Diagnostics was only CNY 6.288 billion.

In this regard, Dian Diagnostics said that it was mainly due to the business growth during the reporting period and the longer payment period for the nucleic acid detection business.

It is worth mentioning that Dian Bio, a subsidiary of Dian Diagnostics, is actively applying for the registration of new crown antigen detection reagents, and has not yet obtained a registration certificate that can be sold in China.