Local Governments’ Covid-19 Testing Bills Pile Up, Corporate Earnings Show

Chinese local governments’ bills with Covid-19 testing service providers are piling up as regular mandatory testing squeezes their already tight coffers, a review of corporate earnings shows.

Dian Diagnostics Group Co. Ltd. (300244.SZ), a clinical laboratory and major testing service provider, reported accounts receivable of 10.7 billion yuan ($1.5 billion) at the end of June, a 69.9% increase from six months ago and roughly equal to its total revenue for the period, according to a Saturday filing.