Shandong Weigao Group Medical Polymer Company (1066) H2 2024 earnings summary

Executive summary

• Revenue reached RMB13.09bn in 2024, down 1.1% year-over-year, with net profit attributable to parent at RMB2.07bn, up 4.2% YoY after excluding one-time income in 2023.

• Gross profit margin remained stable at 50.3%.

• Overseas revenue grew 8.7% YoY to RMB3.29bn, representing 25.1% of total revenue, with strong expansion in Europe, Middle East, Asia, US, and EMEA.

• R&D expenses rose to RMB630mn, with 150 new product registrations and 127 patents granted in 2024.

• The annual dividend ratio is proposed to increase to 50% for 2024, with cumulative dividends paid exceeding RMB7bn since listing and a final dividend of RMB0.1235 per share.

Financial highlights

• Adjusted net profit attributable to shareholders was RMB2.07bn, up 4.2% YoY, excluding one-time benefits.

• Operating cash flow reached RMB2.79bn, with positive free cash flow for the seventh consecutive year.

• Bank balance and cash stood at RMB7.78bn, with total debt at RMB4.19bn and net cash at RMB3.59bn.

• ROE was 8.9% in 2024, up from 6.3% in 2023.

• Gearing ratio improved to 17.7% from 18.6%.

Outlook and guidance

• Focus on platformization, internationalization, and digitalization to drive long-term growth.

• Continued investment in R&D and talent to support innovation and new business segments.

• Expansion of product lines and global presence, with emphasis on high-growth overseas markets and digital healthcare solutions.

• Market share of core products further consolidated, with brand influence strengthening.

• Centralized procurement policy impact has stabilized; company is adapting through bidding and market strategy optimization.