Lepu Medical Technology Co (300003) Q4 2025 earnings summary

Executive summary

• 2025 marked a pivotal year of strategic transformation, shifting from basic (volume-based procurement) to innovation-driven (non-volume-based) business.

• Organizational optimization, incentive reforms, and supply chain cost controls ensured stable revenue, profit, and cash flow, laying a solid foundation for transformation.

• Focused on three core growth engines: metabolic/cardiovascular innovative drugs, neuroregulation/brain-machine interface devices, and dermatology products.

Financial highlights

• Revenue reached ¥6.48 billion, up 6.22% year-over-year; net profit attributable to shareholders was ¥962 million, up 289.57% year-over-year.

• Operating cash flow was ¥1.52 billion, up 106.48% year-over-year.

• Basic and diluted EPS were ¥0.5219, up 290.64% year-over-year.

• Gross margin for medical devices was 69.89%, for pharmaceuticals 64.23%, and for healthcare services 45.57%.

• Overseas sales grew 25.45% year-over-year, with overseas gross margin up 3.19 percentage points.

Outlook and guidance

• Basic business expected to remain stable, with annual revenue fluctuations between -5% and +15% and stable cash flow.

• 2026 strategy: consolidate core business, accelerate growth in dermatology, innovative drugs, and neuroregulation/brain-machine interface segments.

• Continued investment in R&D, especially in innovative drugs, and pursuit of more international licensing deals.