IVD Medical (1931) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB2,820.7 million, down 10.8% year-over-year due to increased competition in the IVD industry and pricing pressure.

• Net profit dropped 85.9% to RMB37.4 million, mainly due to lower revenue, higher administrative expenses from dual listing preparations, and increased finance costs.

• Adjusted profit (non-GAAP) fell 81.3% to RMB52.4 million, reflecting core operational performance.

• No final dividend was recommended for 2025.

Financial highlights

• Gross profit decreased 24.6% to RMB566.4 million; gross margin declined to 20.1% from 23.8%.

• EBITDA dropped 57.2% to RMB203.7 million.

• Net profit margin fell to 1.3% from 8.4%; adjusted profit margin was 1.9% versus 8.9% last year.

• Return on assets and equity declined to 0.7% and 1.0%, respectively.

• Cash and cash equivalents at year-end were RMB350.9 million, down 80.2% year-over-year.

• Gearing ratio increased to 31.0% from 13.3%.

Outlook and guidance

• The IVD market in China is projected to grow at a 15.7% CAGR through 2027, driven by aging demographics and rising healthcare spending.

• Strategic focus remains on expanding the IVD product portfolio, distribution network, and R&D in precision medicine and AI-driven healthcare solutions.

• Integration with B-Soft aims to enhance clinical workflow efficiency and data utilization.