Key takeaway

The company released its 2025 annual report, with performance in line with expectations. Revenue growth was primarily driven by the consolidation of Green Cross. Profitability was under pressure due to increased intangible assets and goodwill impairment losses, higher amortization of appraisal appreciation, and a decline in the gross margin of the blood products business. The company's plasma collection volume hit a new record high. The expansion of plasma collection stations and capacity construction continue to progress, while the company actively develops its R&D pipeline and steadily advances its internationalization strategy. Looking ahead, as the industry gradually recovers to a balanced supply-demand equilibrium, the prices of core products are expected to stabilize. The launch and volume growth of new products, coupled with the deepening integration of Green Cross, will further enhance the company's profitability.

Event

The company released its 2025 annual report, with results meeting expectations.

On March 21, the company released its 2025 annual report, reporting: 1) total operating revenue of 2.059 billion yuan, an increase of 18.69% year-on-year; 2) net profit attributable to the parent company of 113 million yuan, a decrease of 71.61% year-on-year; 3) net profit attributable to the parent company excluding non-recurring items of -7.7575 million yuan, a decrease of 102.57% year-on-year; 4) basic earnings per share of 0.22 yuan. Results met expectations.

The company’s 2025 profit distribution plan is as follows: based on a total of 504 million shares, a cash dividend of 0.73 yuan (including tax) per 10 shares will be distributed to all shareholders. Aggregating with the 2025 semi-annual profit distribution, the total annual dividend amounts to 112 million yuan, representing 99.78% of the net profit attributable to the parent company.

Brief Comments

Consolidation of Green Cross drives revenue growth, while multiple factors weigh on profit performance In 2025Q4, the company’s operating revenue reached 585 million yuan, a year-on-year increase of 19.47%; Net profit attributable to the parent company was -230 million yuan, a year-on-year decrease of 1365.52%; net profit attributable to the parent company excluding non-recurring items was -218 million yuan, A year-on-year decrease of 529.74%. In 25Q4 and for the full year, the company achieved year-on-year growth in revenue, primarily driven by the incremental performance contribution from the acquisition of Green Cross. Net profit declined year-on-year, primarily due to increased impairment losses on Gelinke's intangible assets and goodwill, as well as an increase in the amortization of appraisal appreciation resulting from the acquisition of Green Cross; In addition, the blood products business was impacted by factors such as centralized procurement, DRG/DIP reforms, Healthcare cost control, and intensified market competition, leading to a year-on-year decline in gross margin. Among these, the impairment of intangible assets related to Gelinke’s exclusive distribution rights (medical aesthetic hyaluronic acid products) totaled 198 million yuan, goodwill impairment for Green Cross Hong Kong reached 110 million yuan, and the write-down of inventory resulting from appraisal appreciation along with asset depreciation and amortization from the acquisition of Green Cross Hong Kong totaled approximately 80 million yuan. The revenue increment driven by the acquisition of Green Cross in 2025 mainly includes: 1) The blood products business contributed 258 million yuan in revenue, a year-on-year increase of 540.52%; 2) The pharmaceutical distribution business (Gelinke) contributed 198 million yuan, a year-on-year increase of 9708.34%.