Cofoe Medical Technology (301087) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue was RMB 1.496bn, down 4.03% YoY; net income attributable to shareholders was RMB 167.4m, down 9.51% YoY.

• Focus shifted to core product categories, optimizing low-return offerings, improving gross margin and expanding overseas; the H2 launch of a self-developed ventilator gained sales momentum from Q2.

• Overseas revenue exceeded RMB 96m, up 208.97% YoY, while domestic revenue declined 8.40%.

Financial highlights

• Adjusted for non-recurring items, net income attributable to shareholders was RMB 136.2m, down 17.98% YoY; non-recurring gains totaled RMB 31.2m.

• Operating cash flow rose 14.46% YoY to RMB 351.4m; investing cash flow was RMB 46.7m, partly reflecting matured wealth-management products.

• Operating costs were RMB 1.324bn, down 1.37% YoY; sales expenses increased 2.90% and administrative expenses increased 31.36%, including acquisition consolidation and consulting costs.

• Finance expense was RMB -3.1m versus RMB -12.9m a year earlier, as deposit mix shifted and interest rates fell.

Outlook and guidance

• Strategy emphasizes product innovation, core-category development, channel efficiency, international expansion and building new growth engines; no quantitative earnings guidance was stated.

• Continue scaling cross-border e-commerce and overseas distribution, using acquired customer networks and Hong Kong retail channels to support international growth.

• Further digitalize and refine manufacturing, supply-chain control and store operations to improve production efficiency, cost control and service quality.