Runda Medical disclosed its reply to the annual report inquiry letter for 2025, explaining its first annual loss since listing, revenue decline, and debt repayment pressure. The company achieved operating revenue of 6.999 billion yuan in 2025, down 15.80 percent year-on-year, with a net loss attributable to the parent of 548 million yuan, swinging from profit to loss. The main reasons were the impact of centralized procurement price cuts and DRG/DIP payment reforms on the core IVD distribution business, leading to lower product prices at hospitals while fixed expenses did not decrease simultaneously. Additionally, the company made a credit impairment provision of 176 million yuan on accounts receivable and a goodwill impairment of 209 million yuan. The loss was concentrated in the fourth quarter, with a single-quarter net loss attributable to the parent of 386 million yuan, accounting for over 70 percent of the full-year loss. Revenue and gross margins of the three core IVD distribution segments declined simultaneously. Reagent agency business revenue was 4.872 billion yuan, down 12.92 percent year-on-year, with gross margin falling 4.62 percentage points. Integrated and regional testing business revenue was 1.856 billion yuan, down 24.07 percent year-on-year, with gross margin decreasing 2.98 percentage points. Third-party laboratory business revenue was 110 million yuan, down 16.73 percent year-on-year, with gross margin plunging 32.37 percentage points. The company's interest-bearing debt stood at 6.743 billion yuan, of which 6.017 billion yuan will mature within one year. Borrowings of 3.245 billion yuan due in the first half of 2026 have been successfully repaid and refinanced. Going forward, the company will coordinate debt repayment through bank credit lines and support from state-owned shareholders.
Shanghai Runda Med Tech CoCentralized procurement price cuts and DRG/DIP reforms pressured core IVD distribution, causing first loss and revenue decline.
