WHOLE SHINE MEDICAL 2025 Annual Report: Oral Medical Service Revenue Decreased by 17.54% Year-on-Year, Delun Medical Net Profit Turns to Loss

Source: Haochen Medical 2025 Annual Report

[SOURCE] In 2025, Net Profit Attributable to Shareholders of the Parent Company was a net loss of RMB 119 million / Oral medical service revenue decreased by 17.54% year-on-year / Delun Medical's net profit was RMB -17.6013 million.

[SOURCE] DentalGoodNews｜For the full year of 2025, WHOLE SHINE MEDICAL TECHNOLOGY CO.,LTD. (Stock Code: 002622, hereinafter referred to as "WHOLE SHINE MEDICAL") released its 2025 annual report. According to the annual report data, the company achieved operating revenue of RMB 703 million in 2025, a year-on-year decrease of 18.42%; net profit attributable to shareholders of the parent company was RMB -119 million, a year-on-year expansion of loss by 216.85%; net profit attributable to shareholders of the parent company after deducting Non-recurring Gains and Losses was RMB -106 million, a year-on-year expansion of loss by 345.61%.

Source: Haochen Medical 2025 Annual Report

[SOURCE] By quarter, the net profit attributable to shareholders of the parent company in Q4 alone was RMB -93 million, accounting for approximately 78% of the total annual loss, making it the core factor dragging down the full-year performance. The annual report explained that the losses were concentrated in two non-cash asset impairments: first, an impairment test was conducted on the goodwill related to the controlled subsidiary Guangdong Delun Medical Group Co., Ltd. (hereinafter referred to as "Delun Medical"), and a provision for Goodwill Impairment was planned; second, an impairment test was conducted on the long-term equity investment held in Fushun Bank, confirming that the recoverable amount was lower than the carrying value, and an impairment loss was recognized. The above two items totaled RMB 54.38 million in non-core business Asset Impairment Loss, accounting for 43.19% of the total annual profit (based on loss口径).

Source: Haochen Medical 2025 Annual Report

[SOURCE] In 2025, oral medical services achieved revenue of RMB 638 million, a year-on-year decrease of 17.54%, accounting for 90.74% of total revenue; the gross profit margin was 46.28%, narrowing by 3.82% year-on-year. The company attributed the business decline to "intensified market competition, rising customer acquisition costs in the industry, and a significant decline in the average comprehensive customer spending per patient."

Source: Haochen Medical 2025 Annual Report

[SOURCE] As the core controlled subsidiary, Delun Medical achieved operating revenue of RMB 638 million in 2025, a year-on-year decrease of approximately 17.57%; the net profit for the period was RMB -17.6013 million, turning from a profit of RMB 45.8228 million in the previous period to a loss; the total comprehensive income was RMB -17.6013 million. The net cash flow from operating activities of Delun Medical for the current period was RMB 51.8004 million, a decrease of approximately 47.55% compared to the previous period. In terms of assets and liabilities, Delun Medical had Current Assets of RMB 150 million, non-current assets of RMB 286 million, and total assets of RMB 436 million at the end of the period; current liabilities of RMB 223 million, non-current liabilities of RMB 134 million, and total liabilities of RMB 358 million. Compared to the beginning of the period, total assets decreased from RMB 487 million to RMB 436 million, and total liabilities decreased from RMB 395 million to RMB 358 million [⑭].

[SOURCE] According to the report data, as of December 31, 2025, the company's subsidiary Delun Medical has completed a full layout across Guangzhou, excluding the Conghua and Nansha districts, operating a total of 28 chain clinics covering four cities: Guangzhou, Foshan, Zhaoqing, and Huizhou. The total operating area exceeds 40,000 square meters, with over 500 dental chairs, more than 200 practicing physicians, and over 420 nursing staff. In 2025, Delun Medical closed three small clinics (Xiancun, Shixi, and Fengya), each with an area not exceeding 200 square meters. In May and September, new clinics were opened in Zhaoqing and Huizhou, respectively, adding a total of over 2,000 square meters of operating area and more than 50 dental chairs, achieving an expansion from a "Guangzhou-Foshan chain" to a "four-city chain."

Source: Haochen Medical 2025 Annual Report

[SOURCE] On the expense side, selling expenses in 2025 were RMB 176 million, a year-on-year decrease of 5.32%, mainly due to the company reducing promotional expenses following a decline in oral business volume; administrative expenses were RMB 146 million, a year-on-year decrease of 12.56%, mainly due to reduced employee compensation expenses; financial expenses were RMB 40 million, a year-on-year decrease of 11.37%, mainly due to reduced borrowing interest; the total of these three items was RMB 362 million, accounting for 51.5% of total revenue. R&D investment was RMB 11.7553 million, a year-on-year increase of 16.22%, accounting for 1.67% of revenue, primarily used for the development of new permanent magnet switch products and clinical technology research in areas such as Dental implantation.

Source: Haochen Medical 2025 Annual Report

[SOURCE] In terms of cash flow, the net cash flow from operating activities was RMB 66 million, a year-on-year decrease of 28.53%. The company stated that there is a significant difference between its net cash flow from operating activities and the current year's net profit, mainly due to the company's recognition of Asset Impairment Loss for long-term equity investments and in accordance with the relevant provisions of the Accounting Standards for Business Enterprises, while the actual cash flow has not yet been disbursed.

Source: Haochen Medical 2025 Annual Report

[SOURCE] As of the end of 2025, total assets were RMB 1.358 billion (year-on-year -9.31%), net assets attributable to the parent company were RMB 271 million (year-on-year -31.98%), and the accumulated undistributed profit on a consolidated basis was RMB -575 million. The company may currently be unable to implement cash dividends. Regarding restricted assets, as of the end of the reporting period, the total book value of restricted assets was approximately RMB 625 million, covering various types including monetary funds (time deposits), long-term equity investments (frozen due to litigation), fixed assets and real estate (pledged for loans), etc.

[SOURCE] Additionally, the company stated that after a reasonable adjustment of the clinic layout, the number of Delun Medical clinics in the Guangzhou-Foshan region has been optimized to 26. In the second half of 2025, the company also simultaneously launched special services such as "Digital Smart Dental Care," "Painless Clinic," and "International Dentistry." In 2026, Delun Medical will further increase efforts to develop special services and special clinics [⑬].