Beijing-based orthopaedic device maker CHUNLI MEDICAL reported mixed interim results for the six months ended 30 June 2026. Revenue fell 14.46 % year on year to RMB 417.10 million (USD 57.4 million), largely reflecting slower domestic demand amid ongoing volume-based procurement for high-value orthopaedic consumables. The revenue decline was driven almost entirely by the core medical-device segment, which dropped 14.41 % to RMB 416.87 million.
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Despite top-line pressure, cost discipline underpinned profit growth. Selling expenses were cut by 31.67 % to RMB 65.78 million, and administrative costs fell 31.09 % to RMB 19.56 million. Research and development outlays eased 7.14 % to RMB 47.23 million but still accounted for 11.3 % of sales, underscoring management’s focus on product innovation.
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Net profit attributable to shareholders rose 4.79 % to RMB 119.96 million (USD 16.5 million), aided by lower operating expenses and a favourable sales mix. The net margin expanded to 28.8 % from 23.5 % a year earlier.
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The balance sheet remained robust. Cash and cash equivalents stood at RMB 1.38 billion, only 2.01 % below year-end 2025, while total liabilities contracted 19.6 % to RMB 541.76 million, driving the gearing ratio down to 15.1 % from 18.4 %. The company continues to deploy surplus funds into short-term, low-risk structured deposits; unredeemed positions totalled RMB 725.06 million at period-end.
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Capital expenditure was negligible in the half, but CHUNLI MEDICAL maintained R&D momentum, holding 760 domestic intellectual-property rights and 237 medical-device registration certificates. The pipeline was strengthened by approvals across joint, spine, sports-medicine, trauma and dental segments, while the company’s handheld orthopaedic surgical robot received added certifications.
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The Board approved an interim cash dividend of RMB 1.30 per 10 shares, amounting to RMB 49.68 million, equivalent to a 41.4 % payout of first-half attributable profit. The proposal awaits shareholder approval at an upcoming extraordinary general meeting.
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Management reiterated its strategy to mitigate procurement pressure through product diversification, sustained innovation investment and further international expansion, supported by a liquidity position it regards as ample for foreseeable capital needs.