Shandong Weigao Group Medical Polymer Company (1066) H2 2025 earnings summary

Executive summary

• Revenue for FY2025 reached RMB13.39bn, up 2.3% year-over-year, but adjusted net profit attributable to owners declined 19.9% to RMB1.62bn, mainly due to price reductions, lower gross margin, and exchange losses.

• All business segments recorded revenue growth, with international sales rising 8.6% year-over-year to RMB3.57bn, now comprising 26.7% of total sales.

• Gross profit margin declined to 47.6% from 50.3% last year, mainly due to price reductions in core medical device products.

• Robust R&D pipeline with RMB647m spent (4.8% of revenue), 111 new product registrations, and 128 new patents granted domestically in 2025.

• Final dividend proposed at RMB0.06 per share, down from RMB0.1235 last year, pending shareholder approval.

Financial highlights

• Revenue increased to RMB13.39bn in 2025 from RMB13.09bn in 2024.

• Adjusted net profit attributable to shareholders fell to RMB1.62bn, down from RMB2.02bn in 2024.

• Gross profit was RMB6.37bn, down 3.2% year-over-year.

• Operating and free cash flow remained stable, with positive free cash flow for the eighth consecutive year.

• Cash and bank balances (including term deposits) at RMB8.75bn.

Outlook and guidance

• Integration with Weigao Blood Purification adds new growth tracks in blood purification and upstream biopharmaceuticals, pending regulatory approval.

• Plans to serve as the sole listed integration platform for Weigao Holding's medical device businesses, enabling further asset injections and M&A.

• Focus on specialized, powered, and intelligent consumables, with expansion into surgery and comprehensive device solutions.

• Continued overseas expansion through joint ventures and localized management, especially in Southeast Asia.

• Industry faces continued pricing pressure from centralized procurement and macroeconomic headwinds.