MicroPort NeuroScientific (2172) H1 2025 earnings summary

Executive summary

• H1 2025 revenue was RMB382.9m, down 6.2% YoY; net profit was RMB92.7m, down 33.8%, while adjusted net profit was RMB149.5m, down 6.1%.

• Overseas revenue grew 67.4% to RMB47.1m, while domestic sales faced VBP pressure and the termination of cooperation on previously distributed products.

• Commercial reach expanded to nearly 3,600 hospitals, and five products received NMPA marketing approvals from early 2025 through the report date.

Financial highlights

• Gross profit was RMB281.0m, down 4.7%; operating profit was RMB158.1m versus RMB182.5m, and profit before tax was RMB113.6m versus RMB171.0m.

• Cost of sales fell 10.0% to RMB101.9m and gross margin rose to 73.4% from 72.3%, supported by improved production efficiency.

• R&D costs declined 23.4% to RMB37.0m; distribution costs increased 42.0% to RMB79.7m amid expanded marketing activity.

• Administrative expenses rose 10.3% to RMB31.7m, primarily on higher share-based payment expenses; other net income rose 23.5% to RMB25.6m, mainly on increased grants.

• Income tax expense declined 32.5% to RMB20.8m, primarily reflecting lower profit before tax.

Outlook and guidance

• Priorities include expanding the product portfolio through internal R&D and external collaboration, aligning product iterations with clinical needs, and improving manufacturing efficiency and affordability.

• Plans include upgrading manufacturing and quality systems, developing a global supply chain, and expanding production, sales and international partnership capabilities.

• Overseas expansion targets countries and regions ranked in the top 30 by neuro-interventional procedure volume; lower-tier and county hospitals remain an opportunity for broader adoption.