Slides
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August 25, 2026 2026 Interim Results
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1H2026 Results Overview RMB685m Total Revenue RMB172m Overseas Revenue RMB300m R&D Expenses RMB770m Attributable Net Profit 3.1% Revenue Growth
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1,008 604 774 1H 2025 2H 2025 1H 2026 325 321 302 1H 2025 2H 2025 1H 2026 Expense Ratio（%） 4.4%4.9% 4.8% 1,624 1,947 1,724 1H 2025 2H 2025 1H 2026 Overseas Revenue (RMBm) Attributable Net Profit (RMBm)R&D Expenses (RMB million) and Expense Ratio Revenue (RMBm) 6,644 6,745 6,849 1H 2025 2H 2025 1H 2026 Key Financials
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Net profit margin revived with expenses optimizatioin • Selling expense ratio was 15.6%, down 1.6 ppts YoY; administrative expense ratio was 9.4%, down 0.4 ppts YoY • Net profit attributable to owners of the Company excluding extraordinary items amounted to RMB 890 million¹ , down 11.7% YoY and up 45.3% HoH, mainly attributable to product mix optimisation and expense optimisation 01 02 03 04R&D and Innovation • R&D expenses accounted for 4.4% of revenue in the first half; 129 new product registration certificates were obtained in China and 150 new patents were granted; overall 1314 product registration certificates in overseas • The fully modular patient monitor obtained registration in July, becoming the third major perioperative device following the anaesthesia machine and ultrasound system Results Review Overseas business grew steadily with expanded market coverage ▪ Overseas sales increased by 6.2% YoY in the first half, with its contribution to total sales rising by 1 ppt to 25.2%. ▪ Regions including Asia, Europe, the Middle East and Africa achieved double-digit growth. ▪ The IV catheter factory in Indonesia commenced trial production in the third quarter. Strategic M&A and Integration ▪ The transaction with Weigao Blood Purification was reviewed and approved by the M&A and Reorganisation Review Committee of the Shanghai Stock Exchange on 10 August 2026, and remains subject to registration approval by the China Securities Regulatory Commission before implementation. ▪ The broad surgical strategy has been preliminarily formulated. The Company expects to gradually initiate the integration work in the second half of the year, and plans to complete the overall layout of the surgical business within 2–3 years. Note： 1. Excluded the impact of extraordinary items (including one-off expenses, share-based payment expenses, exchange gains/losses, etc.)
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50.8% 18.3% 10.2% 14.1% 6.6% Blood Management Interventional products Orthopaedic RMB3.48bn，5.4% General Medical Device Pharma Packaging RMB1.25bn，7.5% RMB450m，0% Segment Revenue Contribution and YoY Growth RMB960m，-2.7%1 RMB700m，-4.7% Note： 1. Mainly due to USD exchange rate impact, turning YoY growth into a decline.
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Orthopaedic General Medical Device Progress by Business Segment ⚫ Segment profit amounted to approximately RMB 470m, down 9.4% YoY but up 162.4% HoH, with a segment profit margin of 13.4%. ⚫ Profit declined YoY due to product price reductions in certain provinces and cities in the second half of 2025. However, the segment profit margin recovered sequentially through the continuous increase in market share of high-margin products and cost scale effects. ⚫ In the second half of this year, the profit margin may come under some pressure, taking into account rising raw material prices and the implementation of volume-based procurement for certain products. ⚫ Segment profit amounted to RMB 160m, up 1.6% YoY and up 5.1% HoH, with a segment profit margin of 23.4%. ⚫ Revenue declined due to slower product shipments, mainly affected by the renewal of spine product tenders. However, the profit margin remained stable with a slight improvement. ⚫ In the second half of the year, revenue performance is expected to improve with the implementation of new tenders and the continued volume growth of new products, while the profit margin is expected to remain relatively stable.
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Interventional Blood Management Progress by Business Segment ⚫ Segment profit recorded a loss of approximately RMB 68m, remaining largely flat YoY . ⚫ Revenue in USD recorded low-single-digit growth YoY . Profit was impacted by investment expenses related to new products such as thrombectomy devices. Argon China achieved double-digit growth while advancing the localization of production lines. ⚫ Assuming the USD/RMB exchange rate remains stable, revenue performance in the second half is expected to improve. Pharma Packaging ⚫ Segment profit amounted to RMB 480m, up 6.1% YoY and up 28.6% HoH, with a segment profit margin of 38.2%. ⚫ Prefilled syringes and auto-injectors experienced price reductions due to policy and industry competition. At the same time, rising upstream costs caused by geopolitical factors also weighed on the gross margin. ⚫ With the full release of production scale effects, the profit margin in the second half is expected to be higher than that in the first half. Full-year revenue and profit are expected to record steady growth. ⚫ Segment profit amounted to RMB 53m, up 70% YoY and up 6.4% HoH, with a segment profit margin of 11.7%. ⚫ Blood bag business revenue and profit grew steadily. Radsource turned around to profitability YoY . ⚫ Full-year revenue is expected to grow modestly, while profit is expected to achieve relatively stronger growth.
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Progress in Perioperative Equipment Development With the approval of the fully modular patient monitor, the most commonly used devices in the life support field have successively obtained registration. The perioperative equipment product pipeline is expected to be fully in place within the next 1–2 years. 2025 Ultrasound Approved 30 July 2026 Fully Modular Patient Monitor Approved Under Development Ventilator Under Development Infusion and Syringe Pump 2024 Anaesthesia Machine Approved
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Orthopaedic Product Development Progress In 1H26, 113 and 59 new product certificates were obtained in China and overseas, respectively, focusing on minimally invasive technology, intelligent solutions and orthopaedic bioactive materials. 3 Disposable plasma surgical electrode (approved) Flexible bone cement filler (approved) Minimally invasive & intelligent 2 Functional Repair & Tissue Regeneration 1 Porous tantalum preparation technology, artificial ligaments, Domestic PEEK cage(approved) Implant Technology Iteration Building the “PRP+” ecosystem Artificial bone bioactive materials and biological factors
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Operational Improvement 2H26 Business Outlook M&A Integration Overseas Expansion ⚫ Push forward the external M&A and integration of assets in related fields such as general surgery and digital AI, to establish a comprehensive, innovative, and internationally competitive platform for general surgical medical device; ⚫ Complete the asset swap transaction with Weigao Blood Purification to accelerate the consolidation of the Group’s assets onto a unified platform. ⚫ The Company will promote the trial production of the Indonesia JV factory in the second half of the year and gradually expand into the Southeast Asian market. At the same time, it will build local production capacity and a localised sales team in Côte d’Ivoire, West Africa, to cover the African market.; ⚫ Optimise the operational capabilities of overseas platforms (e.g. Argon), and accelerate global production capacity layout and production conversion. ⚫ Increase the proportion of new products such as perioperative devices, adjust product mix, continuously improve production costs, and maintain a relatively stable gross profit margin; ⚫ Control and optimise expense management, improve the input-output ratio of marketing and market investments, and enhance commercial profit margin.
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Appendix
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• Net operating cash flow and free cash flow remained stable in 1H2026 • Stable cash flow performance as operating cash flow increased and capital expenditure stabilized; positive free cash flow for the eightth consecutive year since 2018 Notes: 1. Net of a one-time cash outflow of RMB460m due to product liability in 2022 2. The effect of accounting restatement of the same control not considered from 2013 to 2023 The above figures are for illustration of the Company’s operational trends only. Please refer to the official results announcement for the actual figures. Cash flow and CAPEX (RMBm) Cash flow and Capex (1,513) (795) (942) (896) (1,071) (1,070) (645) (647) (833) (458) 1,267 2,219 2,321 2,697 3,035 2,678 2,799 2,790 2,551 882 (246) 1,424 1,379 1,801 1,964 1,608 2,154 2,143 1,718 424 (2,000) (1,000) 0 1,000 2,000 3,000 4,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 1H2026 Capex Net cash flow from operating activities Free cash flow
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196 220 268 279 349 397 335 420 442 385 395 404 455 544 585 645 757 766 984 712 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1H2026 1H 2H Total dividend (RMBm) Note: 1. The dividend payout ratio is based on the net profit at the operating level, excluding one-time non-cash incomes 2. The 2026 interim dividend payment is subject to shareholders’ approval. The Company intends to maintain a dividend payout ratio1 at the level of 50% for 1H2026. The cumulative dividends since listing have reached nearly RMB8.0bn, with a CAGR of over 20% Increasing dividend payout
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1H2026 2025 Working capital Inventory turnover days1 118 days 129 days Accounts receivable turnover days1 174 days 164 days Accounts payable turnover days1 94 days 106 days Cash & liabilities Bank balance & cash RMB7.72bn RMB8.75bn Net cash RMB4.07bn RMB5.11bn Net cash RMB3.65bn RMB3.65bn Leverage analysis Total debt / EBITDA (x) 1.2x 1.5x Net debt / EBITDA (x) Net cash Net cash Interest coverage2 (x) 16.4x 13.0x Current ratio and return analysis Current ratio 3.1x 3.8x Return on equity (ROE) 6.2% 6.8% Return on asset (ROA) 4.5% 4.9% Notes: 1. Represents the average working capital days, and accounts payable turnover days take into account the effect of notes payable 2. Interest coverage = EBITDA / financing costs The above figures are for illustration of the Company’s operational trends only. Please refer to the official results announcement for the actual figures. Additional financial data
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This document does not constitute, or form part of any offer for subscription or sale of, or solicitation of any offer to sub scribe for or sale of any securities of Shandong Weigao Group Medical Polymer Company Limited ("Weigao Group"), nor shall it be construed as calculated to invite any such offer, nor shall it form the basis of, nor can it be relied on in connection with, or act as an inducement to enter into any contract or commitment whatsoever. Forward-Looking Statements This presentation contains certain forward-looking statements relating to the financial condition, results of operations and business of Weigao Group, as well as certain plans and objectives of the management of Weigao Group. These forward- looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Weigao Group to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are based on numerous assumptions regarding the present and future business strategies of the Weigao Group and the political and economic environment in which Weigao Group and its subsidiaries will operate in the future. Forward-looking statements are not guarantees of future performance and investors should not place undue reliance on them. The forward-looking statements contained in this presentation reflect the views of the management of Weigao Group only as of the date of this presentation, and Weigao Group undertakes no obligation to update or revise any forward-looking statements in light of new information, future events or otherwise. Disclaimer
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