Xinwei Medical's 2025 performance: net profit of 83.34 million yuan, turning losses into profits

On March 26, 2026, XW Medical (06609.HK) announced its 2025 performance report. In 2025, the company reported revenue of 408 million yuan, a year-on-year increase of 46.9%, and a net profit of 83.34 million yuan, achieving a significant turnaround from a loss of approximately 13.62 million yuan in the previous year. This transformation was primarily due to rapid revenue growth across the three major business segments of ischemic stroke, hemorrhagic stroke, and interventional pathways, along with further improvements in the company’s operational efficiency.

In 2025, the company’s ischemic stroke business revenue grew by 31.8% year-on-year, mainly due to: (1) the intracranial thrombectomy catheter, which has a differentiated competitive advantage, received widespread clinical recognition, and the large-bore aspiration and cascade aspiration technique (CATCH) was included in the “Chinese Expert Consensus on Endovascular Treatment Techniques for Acute Ischemic Stroke 2025,” with products being used in over 450 hospitals, leading to rapid revenue growth; (2) mature products saw rapid sales growth after being included in centralized purchasing.

In the hemorrhagic stroke business, the company has established a complete aneurysm treatment solution. The company’s intracranial stent (recognized as an innovative medical device by the NMPA) was used in approximately 500 hospitals in its first commercial year, driving rapid growth in the market share of embolic coils. Additionally, the company’s flow diversion device was approved for market release by the NMPA in 2025, achieving clinical promotion and application. For these reasons, the company’s hemorrhagic stroke business revenue increased by 223.2% year-on-year in 2025.

In the interventional pathway business, the company’s flagship product, the vascular occluder, has been used in over 1,800 hospitals, with clinical usage in terminal hospitals exceeding 200,000 units, achieving over 100 million yuan in revenue for a single product in 2025. Meanwhile, the company is promoting the development and commercialization of a second-generation vascular occluder to continue expanding its market share.

The company’s gross profit margin increased from 65.4% in 2024 to 70.9% in 2025, primarily due to the rising proportion of revenue from high-margin innovative products and the effective implementation of cost-reduction measures such as production process improvements and supply chain optimization. The continuously improving product layout and ongoing cost reduction and efficiency enhancement efforts have allowed the company to maintain high product quality and outstanding profitability in the face of intense market competition. While expanding its business scale, the company has achieved significant cost control, with the sales and management expense ratio decreasing from 49.6% in 2024 to 45.8%.

During the reporting period, the company incurred research and development expenses of 40.76 million yuan, primarily for the development of neurointerventional medical devices and brain-machine interfaces. To date, the company has made the following progress:

(1) In the field of ischemic stroke, the company has obtained registration certificates for the intracranial thrombectomy catheter, retrieval stent, and supporting pathway products. The company’s self-expanding intracranial drug-eluting stent has completed a controlled clinical trial, and the registration application has been accepted by the NMPA. According to publicly available information, no similar products have been approved for market release globally, and the company is leading the industry in the R&D progress of such products. In the carotid artery stenosis field, the company is promoting clinical trials for carotid artery stents;

(2) In the field of hemorrhagic stroke, the company is the most comprehensively certified domestic enterprise, achieving a complete layout for intracranial stents (recognized as an innovative medical device by the NMPA), flow diversion devices, embolic coils, and neurovascular occlusion balloon catheters;

(3) At the same time, the company is actively advancing the R&D of innovative products like the interventional brain-machine interface. This product effectively extracts brain signals for human-computer interaction while ensuring surgical safety and long-term implant stability, with the first human clinical trial expected to begin in 2026.

In 2025, the company’s overseas market revenue grew by 101.3% compared to 2024, primarily due to the rapid advancement of the company’s overseas product registration and promotion efforts. In the overseas market, the company’s retrieval stent, occlusion balloon catheter, distal pathway catheter, and microcatheter have obtained CE or FDA certification and have received 56 registration certificates in 13 other countries or regions. To date, the company is also conducting product registration for over 130 products in 29 other countries or regions, expanding sales channels and laying the foundation for achieving long-term overseas sales goals.

In 2025, the company’s operating cash flow was 155 million yuan, with cash and deposits on the books totaling 786 million yuan, indicating a solid overall financial position. Leveraging its strong financial strength, the company completed a share buyback of 39.36 million Hong Kong dollars in 2025 and will continue to promote share buybacks to actively safeguard the interests of all shareholders. Furthermore, the company plans to submit an application for listing on the A-share STAR Market in 2026, aiming to further enhance shareholder returns and stock market liquidity by accessing the domestic capital market.