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

Executive summary

• Revenue grew 2.3% year-over-year to RMB13.39 billion, but net profit attributable to owners fell 22.0% to RMB1.61 billion due to lower gross margin and exchange losses.

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

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

Financial highlights

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

• Net profit excluding extraordinary items and exchange impacts was RMB1.62 billion, down 19.9%.

• Extraordinary items included gains from equity dilution, asset disposals, and product liability settlements, offset by one-off expenses and equity incentive costs.

• Net exchange loss of RMB96.6 million, compared to a gain of RMB43.0 million last year.

• Operating cash flow was RMB2.55 billion, with cash and bank balances (including term deposits) at RMB8.75 billion.

Outlook and guidance

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

• Focus on product mix optimization, R&D, and global expansion to drive future growth.

• Asset swap with Weigao Blood Purification to add new business segments, pending regulatory approval.

• Plans for further M&A and integration as industry consolidation accelerates.