Beijing Chunlizhengda Medical Instruments Co., Ltd. (Chunli Medical) reported robust full-year 2025 results, underscoring strong execution of its volume-based procurement strategy at home and accelerating overseas expansion.
Revenue and Profitability • Revenue rose 29.77% year on year to RMB1.05 billion, driven by higher sales of orthopedic implants and stronger export demand (overseas sales accounted for 47% of product revenue). • Gross profit increased 28.63% to RMB690.64 million, with gross margin holding at 66.0%. • Operating profit surged 131.3% to RMB302.25 million, lifting the operating margin to 28.9%. • Net profit attributable to shareholders doubled to RMB272.54 million (+118.7%), translating into basic EPS of RMB0.71. Net margin improved to 26.1% (2024: 15.5%).
Cost Structure and Expenses • Selling expenses fell 17.51% to RMB198.18 million as the Group streamlined marketing spend. • R&D expenditure declined 10.97% to RMB118.50 million following efficiency gains, yet management reiterated commitment to pipeline expansion in robotics, sports medicine, PRP and dental products. • Credit-impairment losses climbed to RMB9.70 million (2024: RMB4.19 million), reflecting higher provisions on accounts receivable. • Asset impairment charges edged up 10.24% to RMB37.24 million, mainly inventory-related.
Cash Flow and Balance-Sheet Strength • Year-end cash and bank balances reached RMB1.41 billion, up RMB269.34 million from 2024; operating cash inflow amounted to RMB404.84 million. • The Group remains debt-free, with no short- or long-term borrowings recorded; net current assets stood at RMB2.43 billion. • Total assets increased 5.6% to RMB3.66 billion, while total equity rose 5.9% to RMB2.99 billion.
Working-Capital Movements • Notes receivable contracted sharply to RMB4.25 million (2024: RMB160.05 million) amid faster cash collections. • Accounts receivable rose slightly to RMB225.46 million; a higher provision lifted the expected credit-loss ratio to 22.1% (2024: 20.7%). • Inventories eased 2.7% to RMB535.93 million, reflecting better inventory management.
Capital Allocation • Capital expenditure for fixed assets and construction in progress totalled RMB15.69 million, lifting related balances to RMB483.48 million. • The Board proposes a final dividend of RMB1.5 per 10 shares (tax inclusive), amounting to RMB57.33 million. Including the RMB80.26 million interim distributions, total 2025 cash dividends will be RMB137.59 million, representing a 50.48% payout of 2025 attributable profit. • During 2025 Chunli repurchased 1.38 million A shares for RMB20.01 million, representing 0.36% of total shares, to fund employee incentive schemes.
Strategic Progress • Chunli added multiple domestic and overseas product registrations, bringing its portfolio to 223 PRC medical-device certificates and new FDA 510(k) clearance for its knee prosthesis system. • Revenue from international markets grew to RMB488.23 million, supported by CE and FDA approvals and the expansion of its global distributor network. • The Group maintains one of China’s most comprehensive orthopedic implant lines, complemented by new ventures in surgical robotics, sports medicine, PRP systems and dental implants.
Outlook Management plans to deepen R&D investment in customized implants, minimally invasive and intelligent solutions, while leveraging its healthy cash position and debt-free balance sheet to fund production-base expansion and marketing network upgrades. The annual general meeting is slated for 26 May 2026; subject to approval, the final dividend is expected to be paid on or before 30 June 2026 with an H-share book closure from 1 June to 3 June 2026.