Shandong Weigao Group Medical Polymer Company (1066) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB6,644 million, up 0.1% YoY; adjusted net profit was RMB1,008 million, down 9.0% YoY, mainly due to lower pricing and increased marketing for new products.

• Excluding extraordinary items, net profit attributable to owners was RMB967 million, down 12.7% YoY.

• R&D expenses reached RMB320 million, 4.7% of revenue, with 63 new product registrations and 63 new patents in H1; over 100 products in the pipeline.

• Overseas sales grew 4.0% YoY to RMB1.62 billion, accounting for 24.4% of total sales, with high single-digit growth in the US, EMEA, and other regions.

• Interim dividend of RMB0.0969 per share proposed, up from RMB0.0919 per share last year, subject to shareholder approval.

Financial highlights

• Gross profit margin decreased to 49.7% from 50.9% YoY.

• Operating cash inflow was RMB882 million; cash and bank balances at period end were RMB8,945 million.

• Gearing ratio increased to 22.9% from 17.7% at year-end 2024.

• Basic and diluted EPS were RMB0.22 (2024: RMB0.25 and RMB0.24, respectively).

• R&D expense ratio increased to 4.7% in H1 2025 from 4.5% in H1 2024.

Outlook and guidance

• Management expects continued stable growth, focusing on product innovation, channel optimization, and international expansion.

• Plans to further enrich product mix, leverage scale, and maintain market leadership.

• Ongoing cost control and supply chain improvements to offset pricing pressures.

• Transitioning to a mix of overseas production and localized management, prioritizing Southeast Asia.

• Internal restructuring and leveraging M&A to scale and strengthen platforms.