In the investment community, the concept of "growth value" is often used to describe companies with broad growth prospects, strong expected future profitability, and currently low market valuations.

Investors who focus on such companies typically believe that the stocks of these companies are likely to achieve higher market valuations in the future, as they may hold leading positions in their respective fields, possess unique products or services, and have opportunities for continued performance growth in an expanding market.

Therefore, investors paying attention to these companies usually place greater importance on their potential for future business expansion, profit growth, and market share increase.

Recently, at the "Gelonghui·Global Investment Carnival·2025" event, Adicon Holdings (9860.HK) was awarded the "Annual Growth Value Award."

On the day of the event, Adicon engaged in in-depth exchanges and share with investors. To help investors better understand listed companies and accurately grasp future investment opportunities in the ICL industry, Gelonghui compiled the content of Adicon's presentation during this roadshow, from which investors may find answers.

Industry opportunities under the trend of the times, innovation empowers competitiveness.

This year, with the continuous deepening of medical reforms, especially driven by policies such as DRG, hierarchical medical care, and separation of technical and service fees, the demand for high-quality medical testing services from primary medical institutions and private hospitals is increasing day by day, injecting strong development momentum into China's ICL industry.

Especially since the implementation of the medical insurance cost control policy last year, hospitals' demand for cost control has sharply increased, while the ICL industry, with its advantages in improving service quality and efficiency, aligns well with the policy direction, leading to a trend of market share gradually concentrating among leading enterprises.

In this market context, as a pioneer in the domestic ICL industry, adicon holdings has already established a strong brand influence through its large-scale and specialized services and first-mover advantage.

From the perspective of business strategy, the company adopts a dual-driven development model of 'special examination business + co-construction business' to achieve high-quality growth. On one hand, the company places great importance on the dual improvement of the quantity and quality of special examination services, enhancing its competitiveness through specialized and academic commercial promotion. On the other hand, relying on the dual guarantees of 'standardized management' and 'full-process system', the company's co-construction business ensures replicability and long-term sustainable value by providing integrated quality services to medical alliances and leading hospitals.

From the perspective of market layout, as of June 30, 2024, adicon holdings has established 35 self-operated laboratories covering the entire country, and this nationwide integrated network can provide comprehensive and high-quality testing services for hospitals and physical examination centers, solidifying its intensive layout in the industry.

In terms of specific testing projects, adicon holdings currently offers more than 4,000 medical tests covering routine and special examination services, fully demonstrating the company's professionalism and comprehensiveness in testing services.

Of course, adicon holdings has not stopped there, but has continuously improved its market competitiveness and service quality through self-research and cooperation.

Currently, the company has established six major technology centers, covering key fields such as clinical biochemistry, immunology, molecular pathology, blood flow cytometry, mass spectrometry, and genetics, and will introduce more than 200 new projects in 2024, expanding testing services into cutting-edge areas such as cells and genetics. In cooperation, the partnership with guardant health has been fully launched in 2024, providing strong support for the development of new clinical drugs for tumor immunotherapy and targeted therapy in china.

In addition, adicon holdings is also keeping up with the current wave of AI technology, integrating AI applications into business innovation, consistently stimulating future development vitality. Currently, the company has deeply applied AI technology, which has assisted in interpreting over 5 million images, fully demonstrating its strength in the application of AI technology.

It is believed that by empowering innovation to enhance detection capabilities, the company's market value is expected to further expand, solidifying its current leading position in the market and securing a more favorable position in future industry competition.

Core indicators validate the business model, accelerating the release of growth value.

The comprehensive growth of core indicators further validates the strong growth potential and value demonstrated by adicon holdings.

The financial report shows that in the first half of the year, adicon achieved revenue of 1.466 billion yuan. Among them, the regular business grew by more than 10% year-on-year, while the special inspection business achieved a year-on-year growth of over 30%. In addition, the revenue from co-construction businesses also saw a substantial increase of 74% year-on-year, with the number of signed projects surging by 288% year-on-year.

It is worth mentioning that the growth of adicon's special inspection business is particularly remarkable. In the first half of the year, infection-related projects grew by 38% year-on-year, and tumor projects grew by 57%. Since 2020, the company's special inspection business has maintained a steadily rising development curve, with a compound annual growth rate of 38.6% from the first half of 2020 to the first half of 2024, fully demonstrating the company's continuous growth capability.

In terms of profitability, the company achieved a gross profit of 0.56 billion yuan in the first half of the year, with a gross margin exceeding 38%, and the adjusted net income was 0.108 billion yuan, indicating continued release of profitability.

At the same time, adicon has also achieved significant results in cost control. In the first half of the year, sales expenses were 0.202 billion yuan, a year-on-year decrease of 13.6%, and management expenses were 0.108 billion yuan, a year-on-year decrease of 21.3%.

By implementing an efficient procurement strategy, strict BOM (Bill of Materials) management, waste control measures, and constructing a self-operated logistics network, adicon's operational efficiency has been significantly improved, further enhancing the company's competitive edge in service.

It can be seen that adicon holdings' strategic layout is gradually turning into tangible results. This not only brings significant economic benefits to the company, but also provides a business model worth referencing for the entire ICL industry.

Summary

Whether it is strong business growth, continuously innovative and upgraded technological capabilities, or the optimistic outlook for industry development, these positive factors together form a solid foundation for adicon holdings' steady advancement in the ICL industry, while also fully supporting its recognition as a "growth value" label among investors and the market.

With this award, the market's attention and expectations for adicon holdings will further increase on this basis, and the company will continue to move forward steadily in the market cycle, showcasing its outstanding growth value potential.