Key takeaway

The company’s revenue in 2025 and 1Q26 met expectations, while net profit came in below expectations, mainly affected by factors such as foreign exchange losses and asset impairment losses. Looking ahead to 2026, the company’s new businesses such as injection pens and CGM show solid momentum, with the number of orders and customers expected to continue increasing, driving accelerated growth in overall revenue. Quarterly revenue growth for the full year is expected to show a pattern of higher growth in the first half and lower growth in the second half. Considering the impact of factors such as foreign exchange losses, net profit growth is expected to be lower than revenue growth. In addition, the company is developing diversified business presence in segments such as braincomputer interfaces, humanoid robots, cardiovascular intervention, and in vitro diagnostics. These areas are expected to become new growth curves in the future. Continued attention is recommended on the progress of product co-development and commercialization between the company and potential downstream customers.

Event

The company released its 2025 annual report and 1Q26 report

In 2025, the company reported revenue of RMB1.625bn (+2%), net profit attributable to shareholders of the parent company of RMB283mn (-22%), and net profit attributable to shareholders of the parent company after deducting non-recurring items of RMB277mn (-21%). Basic EPS was RMB0.50/share (-22%). The 2025 profit distribution plan is as follows: a cash dividend of RMB2.0 (tax included) for every 10 shares will be distributed to all shareholders, 0 bonus shares (tax included) will be issued, and 4 shares will be converted from capital reserves for every 10 shares held by all shareholders.

In 1Q26, the company reported revenue of RMB403mn (+36%), net profit attributable to shareholders of the parent company of RMB57mn (+9%), and net profit attributable to shareholders of the parent company after deducting non-recurring items of RMB54mn (+10%). Basic EPS was RMB0.10/share (+11%).

Risks

1) Risk from changes in the international political and economic environment: Amid a complex and volatile international environment and escalating trade frictions, the company faces increasing unfavorable external factors. If trade frictions continue to escalate, the company’s operating activities may be adversely affected, and there is a risk that the earnings forecasts in this report may not be achieved.

2) Exchange rate fluctuation risk: As the company’s business develops, if its export volume further increases and the RMB exchange rate fluctuates significantly in the future, such fluctuations may adversely affect the company’ s operating performance.

3) Risk of high customer concentration: The company has a relatively high proportion of sales to Customer A. Customer A has a broad global market and maintains close cooperation with the company. The relatively high share of Customer A will not have a significant adverse impact on the company’s ability to continue operations. However, if the economic environment or the customer’s market environment changes significantly, it may negatively affect the company’s normal production and operations.

4) Risks related to new businesses: Risk that new product R&D and expansion into new application fields fall short of expectations. Risk that the ramp-up of glucose management business-related products falls short of expectations.