China's Oral Industry 2025: Revenue Down 27.4%, Dental Clinic Business Segment Turns from Loss to Profit

Image Source: China Dental Industry Group Annual Results Announcement for the Year Ended December 31, 2025

Loss Widens 159.9% / Revenue Declines 27.4% / Dental Clinic Business Revenue 24.271 Million

DentalGoodNews | On March 31, 2026, China Dental Industry Group Holdings Limited (8406.HK) released its annual results announcement for the year ended December 31, 2025. During the reporting period, the company achieved revenue of RMB 168 million, a year-on-year decrease of 27.4% compared to RMB 231 million in 2024. The annual loss was approximately RMB 42.717 million, significantly widening by 159.9% compared to the loss of about RMB 16.439 million in 2024. During the reporting period, the Group recognized a total impairment loss on other non-financial assets of RMB 18.319 million.

Image Source: China Dental Industry Group Annual Results Announcement for the Year Ended December 31, 2025

By business segment, the company's dental clinic business maintained stable growth during the reporting period, achieving revenue of approximately RMB 24.271 million, an increase of 7.7% year-on-year. Its contribution to total revenue increased from 9.8% in 2024 to approximately 14.5%. In terms of segment performance, the dental clinic business recorded a segment profit of RMB 297,000 in 2025, compared to a segment loss of RMB 14.49 million in 2024. However, the company noted in the report that, affected by price wars in related products in China, the company incurred losses in medical equipment sales, leading to gross losses and related inventory impairments.

Furthermore, the inflatable products business, accounting for approximately 62.4% of total revenue, generated revenue of about RMB 105 million, a decrease of 40.1% year-on-year. The report stated that the decline in this business was primarily due to increased trade tariffs and a reduction in sales orders from the US market. The yarn and polyester business achieved revenue of approximately RMB 38.786 million, a year-on-year increase of 15.0%, with its revenue share rising to 23.1%.

Regarding capital operations, the company disclosed that on March 16, 2026, its indirect wholly-owned subsidiary entered into an agreement with the seller to acquire the entire registered capital of Shishi City Xinsuo Chenglong Weaving Co., Ltd. for a total consideration of HKD 21.6 million, to be settled by issuing shares.

Image Source: China Dental Industry Group Annual Results Announcement for the Year Ended December 31, 2025

Financially, as of December 31, 2025, the company's total assets amounted to RMB 166 million, a decrease compared to 2024; goodwill stood at RMB 8.062 million, unchanged from the previous year. On the liabilities side, total liabilities were RMB 69.527 million, a decrease from RMB 95.321 million in 2024. In terms of equity, the total equity attributable to owners of the company at the end of the period was RMB 96.708 million, a decrease compared to 2024. As of December 31, 2025, the Group's cash and bank balances were approximately RMB 39.936 million. The current ratio was 2.78, and the Debt Ratio (calculated as total borrowings divided by total equity) was approximately 0.03%.