China's leading medical device manufacturer, Mindray Medical, reported its first annual revenue decline since going public in 2025. According to the annual report, the company achieved annual revenue of 33.282 billion yuan, down 9.38% year-over-year. Net profit attributable to shareholders dropped 30.28% to 8.136 billion yuan, while adjusted net profit fell 29.48% to 8.069 billion yuan.
The company's three core business segments were all impacted to varying degrees, with the industry's strategy of compensating for price cuts with volume growth showing signs of weakening. The in-vitro diagnostics business generated revenue of 12.241 billion yuan, declining 9.41%. Life information and support solutions saw revenue decrease 19.80% to 9.837 billion yuan, while medical imaging revenue fell 18.02% to 5.717 billion yuan.
The domestic market was the primary drag on Mindray's performance, with domestic revenue falling 22.97% to 15.632 billion yuan. The company attributed this decline to multiple policy factors including DRG/DIP payment reforms, reagent volume-based procurement, mutual recognition of test results, and medical service price controls, which have pushed the industry into an adjustment phase with reduced reagent usage and prices.
As of April 10, Mindray Medical's shares closed at 158.18 yuan per share, with a market capitalization of 191.8 billion yuan.
The performance of A-share medical device companies presented a mixed picture in 2025, which marked the final year of the 14th Five-Year Plan and a critical period for the full implementation of volume-based procurement and healthcare payment reforms. Wind data shows that among 139 listed medical device companies, 30 had released their 2025 annual reports by April 9, 2026. These companies collectively reported revenue of 70.858 billion yuan, down 2.20% year-over-year, and net profit of 14.258 billion yuan, down 19.37%.
Amid overall pressure on earnings, the divergence within the sector became increasingly evident. While 19 companies reported profit growth, including three with net profit increases exceeding 100%, six companies saw their net profit fall by more than 30%. Notable among these were industry leaders such as Wandong Medical, Mindray Medical, Haohai Biological, and Haier Biomedical.
Wandong Medical, a leading domestic medical imaging company, reported its first annual loss since its 1997 listing. The company's revenue decreased 11.64% to 1.347 billion yuan, while net loss attributable to shareholders reached 228 million yuan, a decline of 244.81%—the steepest drop among the 30 companies. Wandong attributed the revenue decline to strategic adjustments aimed at capturing mid-to-high-end market share domestically through volume-based procurement projects and expanding international channels, though delayed project deliveries affected domestic income.
In contrast to the pressure facing some industry leaders, segments such as high-end medical imaging and cardiovascular intervention demonstrated stronger growth resilience. United Imaging Healthcare, though yet to release its full report, previewed double-digit growth in both revenue and net profit for 2025. Revenue reached 13.821 billion yuan, up 34.18%, while net profit surged 49.60% to 1.888 billion yuan. The company's growth is driven by breakthroughs in high-end segments like CT, MRI, and PET/CT, where it has challenged the dominance of international giants and expanded its market share domestically and internationally.
Huimai Medical, acquired by Mindray, also delivered strong growth in its second year under new ownership. Revenue increased 25.08% to 2.584 billion yuan, with net profit rising 21.91% to 821 million yuan. Growth was fueled by rapid adoption of its core PFA products in electrophysiology and balloon catheter products in coronary intervention.
The underlying reason for this performance divergence lies in policy changes that are reshaping competition in the medical device industry. Volume-based procurement has led to significant price reductions, compressing profit margins, while DRG/DIP payment reforms have reshaped hospital cost control systems. Companies with single product lines, compressed pricing, or slow adaptation have seen profitability decline, while others have maintained growth through cost control and innovation.
For instance, Haohai Biological reported its first simultaneous decline in revenue and net profit in five years, with revenue down 8.33% to 2.473 billion yuan and net profit falling 40.3% to 251 million yuan. The decline was mainly due to lower sales prices of intraocular lenses following volume-based procurement. Similarly, Shandong Pharmaceutical Glass saw revenue decline 8.78% to 4.474 billion yuan and net profit fall 26.87% to 690 million yuan, alongside rising inventory and weakened cash flow.
On the other hand, companies like Sinomedical achieved remarkable turnarounds. Revenue grew 14.53% to 525 million yuan, while net profit skyrocketed 3,057.07% to 47.2863 million yuan—the highest growth among reported companies. The improvement was driven by rising sales of coronary stents and balloons included in procurement programs, as well as new product launches.
Amid these changes, R&D investment has emerged as a key differentiator between industry leaders and laggards. Despite overall industry pressure, R&D spending among the 30 companies remained stable at 6.83 billion yuan in 2025, with the R&D-to-revenue ratio rising from 9.43% to 9.64%. Mindray led in absolute R&D investment at 3.579 billion yuan, while Sinomedical topped in R&D intensity at 23.33% of revenue. Wandong Medical also increased R&D spending by 59.38% to 263 million yuan despite its profit decline.
However, five companies reported R&D ratios below 5%, highlighting disparities in innovation commitment. As the industry shifts from volume-driven expansion to quality competition, R&D capability will increasingly determine long-term competitiveness, particularly in high-end segments like medical imaging, surgical robots, and minimally invasive interventions.