Recently, the 2025 annual performance report disclosed by MicroPort Medical (HK00853, stock price HK$9.17, market value HK$17.581 billion) showed that in 2025, the company achieved revenue of US$1.105 billion, a year-on-year increase of 6.0% (excluding exchange rate effects) Gross profit was US$635 million, an increase of 10.5%; adjusted operating profit increased significantly to US$330,000 (loss of US$123 million in the same period last year), and profit for the year was US$38.43 million (loss of US$268 million in the same period last year), achieving a turnaround.
Recently, MicroPort Medical held the 2025 annual performance communication conference call (hereinafter referred to as the performance conference call). At the earnings conference call, MicroPort Medical's management explained issues of market concern such as 2026 profit targets, R&D investment, centralized procurement response, overseas expansion, and brain-computer interface layout, and clarified business priorities and mid- and long-term development plans.
MicroPort Medical's management stated that the company's current main energy and actions are focused on overseas markets; currently, less than 50 of the company's more than 300 products are exported overseas.
Orthopedics business revenue declines
According to public information, MicroPort Medical was founded in 1998 and is headquartered in Zhangjiang Science City, Shanghai. Its business includes comprehensive cardiovascular treatment and imaging, comprehensive heart failure management and electrophysiology, large vessel peripheral and tumor intervention, life support for critically ill patients, brain science and sensory brain-computer interface, joint and spine trauma sports medicine, etc. It includes several listed companies such as Minimally Invasive Cardiology, Minimally Invasive Electrophysiology, Minimally Invasive Cardiovascular, Minimally Invasive Brain Science and Minimally Invasive Robotics.
The company's financial report shows that in 2025, MicroPort Medical's operating income will be US$1.105 billion, a year-on-year increase of 6.0% (excluding exchange rate effects); gross profit will be US$635 million, a year-on-year increase of 10.5%. Due to supply chain integration and process optimization, the gross profit margin will rise to 57.4%. The net cash inflow from operating activities was US$69.13 million, turning from negative to positive.
However, according to a reporter from "Daily Economic News", the quality of MicroPort Medical's earnings in 2025 has caused concern.
The financial report shows that in 2025, MicroPort Medical's continuing operating business will suffer a loss of US$256 million. The discontinued business mainly contributed US$294 million in profits to MicroPort Brain Science, which turned the overall net profit into positive. Among them, a gain of US$277 million was recognized from the sale of part of the equity of MicroPort Brain Sciences.
In terms of balance sheet, the company's financial report shows that as of the end of 2025, MicroPort Medical's total borrowings were US$1.549 billion, with an asset-liability ratio of 59.4%; of which, bank borrowings due within one year were US$414 million. The convertible bonds that need to be redeemed by the end of 2026 are 216 million US dollars, and the superimposed debt of 750 million US dollars involves profit-making financial covenants: net profit in the first half of 2026 will not be less than 45 million US dollars, and the full year will not be less than 90 million US dollars. If the target is not met, early debt repayment will be triggered and liquidity pressure will increase sharply.
At the performance exchange meeting, when mentioning the above-mentioned gambling pressure, MicroPort Medical's management said frankly: "We cannot give a net profit guidance, but we have financial constraints. We have US$90 million for the whole year. We should achieve this goal."
At the same time, MicroPort Medical's management expects that the company's operating profit margin target will increase to about 4%, and operating cash flow will maintain positive growth; financial costs will decrease by approximately US$60 million year-on-year, asset impairment scale will be significantly reduced, and strategic asset disposal income is expected to be no less than US$100 million.
In addition, MicroPort Medical's orthopedics business, which has high hopes from the outside world, will achieve revenue of US$235 million in 2025, a year-on-year decrease of 7.5% (excluding exchange rate effects).
In this regard, MicroPort Medical's management stated that the current challenges faced by the company's orthopedic business are not a single supply chain problem, but are caused by the superposition of multiple factors such as comprehensive management, product structure and market execution, and the company has formulated targeted solutions.
“Betting” on overseas markets
It is worth noting that in 2025, overseas business will become a highlight of minimally invasive medical development.
The financial report shows that in 2025, after excluding the impact of exchange rate, the revenue of MicroPort Medical's "Global Connect" commercialization platform will increase by 78.8% year-on-year, reaching US$164 million, achieving breakeven for the first time.
In addition, the high growth in overseas markets mainly comes from breakthroughs in minimally invasive medical innovation business. The financial report shows that during the reporting period, the overseas sales of minimally invasive medical surgical robots and structural heart disease business surged by 286.6% and 255.0% respectively after excluding the impact of exchange rates, becoming the core highlights of driving overall revenue growth.
During the earnings conference call, MicroPort Medical's management stated that it would place globalization at the core of the company's strategy.
MicroPort Medical's management also pointed out that the main line of future development will be overseas expansion; currently, the company's overseas business scale has reached US$250 million to US$300 million, and this achievement can only be achieved by promoting less than 50 of the company's more than 300 products in a very small number of regions. The vast majority of the world's markets are still in a state of development, and the 12 regions are still in their infancy.
MicroPort Medical's management further stated that the company's overseas team currently has about 150 people and plans to expand to about 300 people in 2026. In the long term, it will build an overseas global team of thousands of people. MicroPort Medical's management also emphasized that the company's overseas business has shown a high double-digit to low three-digit growth trend, but it has not yet truly begun to make large-scale efforts, and there is broad room for future growth.
However, some industry analysts pointed out that overseas expansion faces risks such as geopolitics, market access, and intensified competition. The return cycle of R&D investment is long and the uncertainty is high.
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