HANGZHOU TIGERMED CONSULTING (300347) H2 2025 earnings summary

Executive summary

• Revenue for 2025 reached ¥6.83 billion, up 3.48% year-over-year; net profit attributable to shareholders was ¥887.89 million, up 119.15% year-over-year, mainly due to significant non-recurring gains.

• Adjusted net profit (excluding non-recurring items) was ¥355.08 million, down 58.47% year-over-year, reflecting underlying operational challenges.

• Operating cash flow improved slightly to ¥1.12 billion, up 1.92% year-over-year.

• The company maintained its leading position in the domestic clinical research outsourcing (CRO) market, with a 10.6% share in China and 1.1% globally in 2024.

• Significant expansion in global operations, including the acquisition of Japan's Micron and team growth in India and Malaysia.

Financial highlights

• Gross margin declined to 26.53% from 33.27% last year, mainly due to lower average project prices and increased costs.

• Main business income was ¥6.71 billion, up 3.70% year-over-year; clinical trial technology services contributed ¥3.27 billion (+2.79%), and related/lab services ¥3.45 billion (+4.57%).

• Net assets attributable to shareholders at year-end were ¥20.96 billion.

• R&D investment was ¥257.64 million, accounting for 3.77% of revenue.

• Non-recurring gains (mainly from investment and fair value changes) totaled ¥532.81 million.

Outlook and guidance

• The CRO industry is expected to continue consolidating, with demand recovering as the domestic biopharma sector rebounds and internationalization accelerates.

• The company expects domestic clinical operations to gradually improve in 2026 as industry cycles stabilize and new orders increase.

• Focus remains on global expansion, digital transformation, and AI-driven efficiency gains.