WEIGAO GROUP (Shandong Weigao Group Medical Polymer Company Limited) released its unaudited interim results for the six months ended 30 June 2026 (“1H26”).

1. Core Financials • Revenue reached RMB 6.85 billion, up 3.1% from RMB 6.64 billion a year earlier. • Gross profit slipped 4.0% to RMB 3.17 billion; gross margin narrowed to 46.3% from 49.7%. • Net profit attributable to owners fell 23.2% to RMB 774.12 million. Excluding RMB 25.0 million of extraordinary costs and a RMB 91.38 million exchange loss, underlying profit declined 11.7% to RMB 890.44 million. • Basic and diluted EPS both stood at RMB 0.17 (1H25: RMB 0.22).

2. Segment Performance • Medical device products: revenue rose 5.4% to RMB 3.36 billion; price cuts under centralised procurement pressured margins. • Orthopaedic products: revenue slid 4.7% to RMB 0.70 billion amid heightened competition and softer surgical volumes. • Interventional products: revenue dipped 1.9% to RMB 1.08 billion, hurt by exchange-rate impacts on U.S. subsidiary Argon. • Pharma packaging: revenue grew 7.5% to RMB 1.25 billion; strong pre-filled syringe demand offset price pressure on flush syringes. • Blood management products: stable at RMB 0.45 billion.

3. Cost & Investment Highlights • R&D spending was RMB 302.22 million, equal to 4.4% of revenue (1H25: 4.9%). • Capex of RMB 336.59 million focused on expanding medical consumables capacity; additional projects totalling over RMB 1.4 billion are underway, including prefilled syringe lines and equipment upgrades.

4. Balance Sheet & Cash Flow • Cash and bank balances totalled RMB 7.72 billion; operating cash inflow was RMB 1.08 billion. • Net cash outflow from financing activities reached RMB 1.33 billion, reflecting debt repayment and share buy-backs. • Gearing ratio fell to 16.7% from 21.2% at end-2025.

5. Shareholder Returns • The Board proposes an interim dividend of RMB 0.0854 per share (1H25: RMB 0.0969), subject to shareholder approval on 16 October 2026. • During 1H26 the company repurchased 29.00 million H-shares for HKD 121.64 million, held as treasury stock.

6. Post-period Event • The planned asset swap with Shandong Weigao Blood Purification Products Co., Ltd. has gained Shanghai Stock Exchange approval and awaits China Securities Regulatory Commission registration. Upon completion, WEIGAO GROUP will receive 271.99 million new Weigao Blood Purification shares in exchange for its subsidiary WEGO Prefills.

Management attributes the earnings contraction to price reductions under volume-based procurement, lower margins in certain product lines and sizeable foreign-exchange losses. The company continues to pursue R&D-driven product diversification and overseas expansion while maintaining a solid liquidity position to support ongoing capacity and M&A investments.