Adicon Is One of the Largest Independent Clinical Laboratories, With Ample Room for Growth

Adicon is China’s third-largest independent clinical laboratory in terms of clinical testing revenue. Unlike some of its competitors, Adicon is a pure play and does not sell testing products. Following the entry of Carlyle Group as a major shareholder in 2018, Adicon has expanded its operations to its current portfolio, testing 4,000 items in 2024. It aims to continue deepening its network by building self-operated laboratories and co-developing labs with hospitals or medical institutions. Given China's low ICL penetration rate of around 7% compared with about 35%-65% in established markets such as Japan, Europe, and the US, we believe that Adicon has ample room for growth. As such, our projected five-year revenue compound annual growth rate is 10.2%.