Medici Technologies 2025 Annual Report Analysis: Operating Revenue Down 35.04% Year-over-Year, Financial Expenses Plummet 92.91%

Interpretation of Core Profitability Indicators

Operating Revenue

In 2025, the company achieved operating revenue of 301,479,183.07 yuan, a decrease of 35.04% compared to 464,068,949.17 yuan in 2024. In terms of business structure, the software and information technology services industry generated operating revenue of 242,323,436.09 yuan, an increase of 4.50% year-on-year; the medical services industry generated operating revenue of 58,074,151.34 yuan, a decrease of 5.72% year-on-year. The decline in revenue is mainly due to the completion of the photovoltaic business disposal in January 2025, resulting in a significant reduction in revenue from this segment during the reporting period, while the main business of medical informationization continued to maintain stable growth.

Net Profit and Net Profit After Deduction

In 2025, the net profit attributable to shareholders of the listed company was 39,158,333.60 yuan, turning from a loss of -279,474,697.74 yuan in 2024 to a profit; the net profit attributable to shareholders of the listed company after deduction was 8,249,459.17 yuan, also turning from a loss of -367,420,492.73 yuan in 2024 to a profit. The turnaround in profitability is mainly due to the completion of the photovoltaic business disposal, which relieved the company from the operational losses of that segment, and the focus on the core medical business significantly improved profitability, while the investment income generated from the disposal of the photovoltaic subsidiary also contributed to net profit.

Earnings Per Share

In 2025, the basic earnings per share was 0.13 yuan/share, and the basic earnings per share after deduction was 0.03 yuan/share, representing a significant improvement compared to -0.92 yuan/share and -1.21 yuan/share in 2024, reflecting a qualitative increase in the company’s earnings per share with the optimization of the business structure and the turnaround in profitability.

Expense Control Situation Interpretation

Overall Expense Situation

In 2025, the company’s total period expenses amounted to 170,914,656.96 yuan, a significant decrease of 50.81% compared to 347,419,145.92 yuan in 2024. The reduction in expense scale is mainly due to the corresponding decrease in expenses after the disposal of the photovoltaic business, while the company has also made significant progress in cost reduction and efficiency improvement measures in the medical core business.

Sales Expenses

Sales expenses were 65,105,356.29 yuan, a decrease of 15.45% year-on-year. Employee compensation decreased from 43,442,370.20 yuan to 33,784,908.91 yuan, and travel expenses decreased from 5,553,140.58 yuan to 3,794,690.08 yuan. On one hand, this is due to the reduction in sales expenses related to the photovoltaic business, and on the other hand, the company has achieved expense control in the medical informationization business by optimizing sales processes and streamlining travel expenses.

Management Expenses

Management expenses were 72,349,678.47 yuan, a decrease of 51.99% year-on-year. Employee compensation decreased from 92,868,918.23 yuan to 37,503,484.54 yuan, and intermediary service fees decreased from 9,337,025.84 yuan to 3,973,458.24 yuan. This is mainly due to the reduced demand for management teams and intermediary services after the disposal of the photovoltaic business, while the company has achieved a significant decrease in expenses by optimizing its internal management structure and cutting non-essential expenditures.

Financial Expenses

Financial expenses were 4,861,750.55 yuan, a significant decrease of 92.91% year-on-year. Interest expenses decreased from 71,808,584.50 yuan to 12,886,952.47 yuan, while interest income increased from 3,697,665.31 yuan to 8,197,711.34 yuan. This is mainly due to the reduction in overall loans and financing leases after the disposal of the photovoltaic business, leading to a significant decrease in interest expenses, and the recognition of interest income from receivable remaining equity transfer payments in the current period.

R&D Expenses

R&D expenses amounted to 28,597,871.75 yuan, a decrease of 44.12% year-on-year. Employee compensation decreased from 46,253,032.68 yuan to 23,700,702.80 yuan, mainly because R&D expenses related to the photovoltaic business are no longer included in the consolidated scope, while the company’s R&D investment in the medical core business remains at a certain intensity. During the reporting period, the company obtained 6 authorized invention patents and added 88 software copyrights, continuously promoting the integration of cutting-edge technologies such as AI and healthcare.

R&D Personnel Situation

In 2025, the company had 161 R&D personnel, accounting for 23.4% of the total number of employees. In terms of educational background, there were 6 master’s degree holders, 106 bachelor’s degree holders, and 49 with associate degrees or below. The core R&D personnel primarily hold bachelor’s degrees or higher. In terms of age structure, there were 103 R&D personnel aged 30-40, accounting for 63.98%, indicating that the R&D team is overall young and full of innovative vitality.

Cash Flow Situation Interpretation

Overall Cash Flow Situation

In 2025, the company had a net increase in cash and cash equivalents of 178,060,025.00 yuan, turning from -313,148,430.21 yuan in 2024 to positive. The cash flow situation has significantly improved, mainly due to the capital inflow from the disposal of the photovoltaic business and the optimization of cash flow in the medical core business.

Operating Activity Cash Flow

The net cash flow generated from operating activities was 65,406,223.10 yuan, turning from a loss of -11,392,562.88 yuan in 2024 to a profit. The total cash inflow from operating activities was 366,336,938.88 yuan, while the total cash outflow was 300,930,715.78 yuan. This is primarily due to the reduced cash outflow from operating activities after the disposal of the photovoltaic business, while cash received from the sale of goods and provision of services in the medical core business remained stable, driving positive operating cash flow.

Investment Activity Cash Flow

The net cash flow generated from investment activities was 247,624,386.28 yuan, a significant increase compared to -145,121,472.83 yuan in 2024. The total cash inflow from investment activities was 841,404,979.65 yuan, of which the net cash received from the disposal of subsidiaries and other operating units was 274,037,101.88 yuan, mainly due to substantial capital inflow from the disposal of equity in the photovoltaic subsidiary. The total cash outflow from investment activities was 593,780,593.37 yuan, with cash paid for the purchase and construction of fixed assets, intangible assets, and other long-term assets decreasing from 252,294,867.43 yuan to 68,580,593.37 yuan, due to a significant reduction in capital expenditures after the disposal of the photovoltaic business.

Financing Activity Cash Flow

The net cash flow generated from financing activities was -134,970,584.38 yuan, narrowing the gap compared to -156,634,394.50 yuan in 2024. The total cash inflow from financing activities was 309,129,787.23 yuan, while the total cash outflow was 444,100,371.61 yuan, mainly due to the improvement in cash flow after the divestiture of the photovoltaic business, leading to a significant reduction in overall loan scale and a decrease in repayment expenditures.

Risk Factor Interpretation

Business Operation Seasonality Risk

The company’s clients are primarily public hospitals, which usually formulate investment plans in the first half of the year, with contract signing, project acceptance, and payment concentrated in the second half, especially in the fourth quarter, leading to seasonal imbalances in the company’s operating revenue and net profit indicators. The net profit of the medical informationization business may be lower or even incur losses in the first half of the year, making quarterly performance less indicative of the annual performance.

Technology and Product Development Risk

Software products have rapid technological updates and short lifecycles. If the company fails to accurately grasp technological and market development trends, and does not develop upgraded products or new products that meet market demands, or if the R&D schedule is delayed, it may lead to the company losing technological and market advantages, as well as wasting R&D resources.

Technology Leakage or Infringement Risk

The company’s core technology and source code are key components of its competitive advantage. Although there have been no incidents of technology leakage or infringement during the reporting period, any serious leakage of core technology or technology infringement in the future could adversely affect the company’s innovation capability and continuation of competitive advantages.

Medical Risks

The company’s Mary Hospital provides assisted reproductive medical services, and there are inherent risks of medical accidents and errors. Although the company places great emphasis on medical quality management, it cannot completely eliminate medical risks. If medical disputes arise, it may negatively impact the company’s brand and performance.

Director and Executive Compensation Situation Interpretation

In 2025, the chairman of the company, Chen Ning, received a total pre-tax compensation of 0 yuan during the reporting period, as he primarily holds a position at the related party Sichuan Anzhou Development Group Co., Ltd.; the vice chairman and general manager, Weng Kang, received a total pre-tax compensation of 1,308,000 yuan; the vice president, Wu Di, received a total pre-tax compensation of 1,897,700 yuan, while the vice president and board secretary, Li Menghao, received a total pre-tax compensation of 924,000 yuan; the financial director, Mei Hao, received a total pre-tax compensation of 840,000 yuan. The compensation for directors and executives is aligned with the company’s performance and job responsibilities, reflecting an incentive for the core management team to drive the company’s business transformation and achieve a turnaround in profitability.

Appendix: Core Financial Data Comparison Table

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Editor: Xiaolang Express