MicroPort NeuroScientific (2172) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 3.8% YoY to RMB790.5m; non-HKFRS adjusted net profit increased 6.0% to RMB298.5m.

• Reported net profit fell 26.2% to RMB183.8m, primarily reflecting RMB70.6m of one-off, non-cash Rapid Medical impairment and fair-value losses.

• Overseas revenue grew 39.4% to RMB104.9m, reaching 13% of total revenue; domestic market share leadership and broader product launches supported performance.

Financial highlights

• Revenue was RMB790.5m, up 3.8% YoY; gross profit increased 4.5% to RMB580.7m.

• Gross margin rose 0.5 percentage point to 73.5%, supported by product mix changes and improved production efficiency.

• Profit from operations was RMB317.5m versus RMB326.8m in FY2024; net profit was RMB183.8m versus RMB248.9m.

• Basic and diluted EPS were RMB0.32, down from RMB0.44; adjusted net profit reached RMB298.5m, up 6.0% YoY.

• R&D costs declined 19.2% to RMB77.9m; distribution costs rose 26.6% to RMB167.8m amid increased domestic and overseas marketing.

Outlook and guidance

• Priorities include expanding product innovation into brain-computer interfaces, artificial intelligence and neurosurgery, and building a brain-disease diagnosis-to-rehabilitation ecosystem.

• Plans include increasing production and sales capacity, improving manufacturing efficiency and affordability, and expanding global product registrations and market penetration.

• Stroke demand, aging populations and improved medical infrastructure are identified as long-term growth opportunities.