Huachi Dental 2025 Annual Report: Revenue RMB 201M, Down 13.88%; Net Profit Attributable to Shareholders Up 84.35%

Source: Huachi Dental 2025 Annual Report

DentalGoodNews｜Shanghai Huachi Dental Hospital Investment Management Co., Ltd. (NEEQ: 873311) released its 2025 annual report. According to the report, the company achieved total operating revenue of RMB 201 million in 2025, a year-on-year decrease of 13.88%; net profit attributable to shareholders of the parent company was RMB 15.9473 million, a year-on-year increase of 84.35%; net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses was RMB 11.3968 million, a year-on-year increase of 250.79%. The company's gross margin for 2025 was 43.55%, an increase of 1.33 percentage points year-on-year; net profit increased by 85.87% year-on-year to RMB 15.9639 million, accounting for 7.93% of revenue, an increase of 4.26 percentage points year-on-year.

Source: Huachi Dental 2025 Annual Report

In terms of expenses, the company's administrative expenses decreased to RMB 28.339 million in 2025, down 36.02% year-on-year, mainly due to optimized personnel structure, reduced office expenses, and no new outpatient clinics opened during the year (significantly reduced start-up costs); financial expenses decreased to RMB 7.4895 million, down 42.77% year-on-year, due to a reduction in the amount of right-of-use assets and lease liabilities, as well as a concurrent decrease in the amortization of unconfirmed financing costs; selling expenses decreased to RMB 29.302 million, down 12.16% year-on-year. Total expenses for the three items decreased by approximately RMB 25.609 million. Against the backdrop of declining revenue, the company's operating profit increased from RMB 23.3058 million in 2024 to RMB 26.5851 million, a year-on-year increase of 14.07%.

Source: Huachi Dental 2025 Annual Report

From a business composition perspective, the dental restoration project ranked first in revenue, reaching RMB 75.6112 million, a year-on-year decrease of 15.08%, with a gross margin of 35.56%; the dental implantation project ranked second, with revenue of RMB 65.1085 million, a year-on-year decrease of 13.39%, and a gross margin of 47.88%; the dental diagnosis and treatment project ranked third, with revenue of RMB 43.7987 million, a year-on-year decrease of 20.50%, the largest decline among the four main businesses, with a gross margin of 57.25%; dental orthodontics was the only business among the four core medical projects to achieve positive growth, with revenue of RMB 13.6361 million, a year-on-year increase of 1.59%, and a gross margin of 34.40%. The company attributed the overall revenue decline to changes in national policies and market environment, prolonged patient treatment cycles, increasingly transparent pricing, and intensified competition from peers.

According to previous reports by DENTALGOODNEWS (Leading Dental Industry Media, DGN), Huachi Dental achieved revenue of RMB 93.7875 million in the first half of 2025, with net profit attributable to shareholders of the parent company of only RMB 175,000 (turning losses into profits). Compared with the full-year data, the second half alone contributed approximately RMB 108 million in revenue (accounting for 53.4% of the full year) and net profit attributable to shareholders of the parent company of approximately RMB 15.7723 million, with the profit contribution primarily coming from the second half.

Source: Huachi Dental 2025 Annual Report

In terms of cash flow, net cash flow from operating activities was RMB 49.9385 million, a year-on-year decrease of 16.52%, mainly due to reduced revenue leading to lower collections; net cash outflow from investing activities was RMB 17.4028 million, primarily due to increased purchases of bank wealth management products; net cash outflow from financing activities was RMB 44.6616 million, narrowing by 11.82% year-on-year, mainly due to reduced lease-related expenditures.

Source: Huachi Dental 2025 Annual Report

In terms of assets and liabilities, total assets at the end of 2025 decreased to RMB 268 million, down 31.52% year-on-year, primarily driven by the combined compression of right-of-use assets (down 33.35% year-on-year) and lease liabilities (down 34.62% year-on-year); net assets attributable to shareholders of the parent company were RMB 58.8834 million, up 14.41% year-on-year; the consolidated asset-liability ratio decreased from 86.80% to 77.94%, and the current ratio increased from 1.11 to 1.37.

Source: Huachi Dental 2025 Annual Report

As of the end of the reporting period, the company and its controlled subsidiaries had a total of 532 employees. Among them, there were 250 medical and technical personnel, 168 administrative and financial personnel, 47 marketing and operations personnel, 40 production personnel, and 27 management personnel.

As of the end of the reporting period, Huachi Dental had 26 controlled subsidiaries, with its business primarily focused in the Shanghai region. The company stated that it has initially established a two-tier medical service system of "flagship outpatient clinics + community outpatient clinics": flagship outpatient clinics mainly provide customized services for high-end consumers and handle high-difficulty, complex cases referred from community outpatient clinics; community outpatient clinics primarily serve nearby residents and families, offering basic and comprehensive oral medical services.

Additionally, the company stated that it achieves denture fabrication and customization through its wholly-owned subsidiary Shanghai Zhongchi Industrial Co., Ltd., and conducts centralized procurement and allocation of equipment, instruments, and consumables through Modupai (Shanghai) Medical Devices Co., Ltd., forming an industry chain layout from processing and manufacturing to outpatient services.