Operating margins have deteriorated to 8.5% in 2025Q2 from 26.5% in 2021Q4, reflecting an inability to maintain profitability amidst a 16.2% revenue decline.
Meihua International Medical Technologies Co., Ltd. (MHUA) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 183.8M | 96.91M | 97.1M | 103.35M | 104.04M | 89.06M | 79.63M | 75.71M |
| Revenue Growth % | -11.3% | -0.19% | -6.05% | -0.66% | 16.82% | 11.85% | 5.18% | - |
| Cost of Goods Sold | 122.05M | 63.61M | 64M | 65.25M | 64.23M | 51.9M | 47.42M | 43.82M |
| COGS % of Revenue | - | 65.64% | 65.92% | 63.14% | 61.74% | 58.28% | 59.55% | 57.88% |
| Gross Profit | 61.75M | 33.3M | 33.09M | 38.1M | 39.81M | 37.16M | 32.21M | 31.89M |
| Gross Margin % | 33.6% | 34.36% | 34.08% | 36.86% | 38.26% | 41.72% | 40.45% | 42.12% |
| Gross Profit Growth % | - | 0.62% | -13.13% | -4.29% | 7.12% | 15.37% | 1.01% | - |
| Operating Expenses | 38.64M | 18.99M | 18.42M | 22.54M | 14.5M | 13.69M | 12.82M | 13.1M |
| OpEx % of Revenue | - | 19.59% | 18.97% | 21.81% | 13.94% | 15.38% | 16.1% | 17.3% |
| Selling, General & Admin | 32.22M | 13.52M | 12.97M | 18.68M | 11.78M | 10.34M | 8.68M | 9.85M |
| SG&A % of Revenue | - | 13.95% | 13.35% | 18.07% | 11.32% | 11.61% | 10.9% | 13.01% |
| Research & Development | 6.08M | 3.46M | 2.75M | 2.96M | 2.73M | 2.49M | 3.21M | 2.87M |
| R&D % of Revenue | - | 3.57% | 2.84% | 2.87% | 2.62% | 2.8% | 4.04% | 3.78% |
| Other Operating Expenses | 340.9K | 2.01M | 2.7M | 898.66K | 0 | 864.79K | 926.2K | 0 |
| Operating Income | 23.13M | 14.31M | 14.67M | 10.8M | 26.26M | 23.47M | 19.39M | 19.18M |
| Operating Margin % | 12.58% | 14.77% | 15.11% | 10.45% | 25.24% | 26.35% | 24.35% | 25.33% |
| Operating Income Growth % | - | -2.47% | 35.85% | -58.87% | 11.91% | 21.04% | 1.1% | - |
| EBITDA | 24.15M | 14.88M | 15.15M | 11.37M | 26.88M | 23.99M | 19.9M | 19.74M |
| EBITDA Margin % | 13.14% | 15.36% | 15.6% | 11% | 25.84% | 26.94% | 24.99% | 26.08% |
| EBITDA Growth % | -32.11% | -1.74% | 33.26% | -57.72% | 12.06% | 20.57% | 0.77% | - |
| D&A (Non-Cash Add-back) | 1.02M | 571.03K | 470.99K | 563.46K | 622.47K | 523.43K | 509.22K | 567.77K |
| EBIT | 23.83M | 15.13M | 15.3M | 11.09M | 26.41M | 23.87M | 19.35M | 19.18M |
| Net Interest Income | 2.73M | -492.3K | 622.66K | -130.94K | -156.89K | -100.58K | -48.95K | 0 |
| Interest Income | 3.48M | 1.01M | 873.44K | 63.73K | 23.86K | 36.58K | 48.84K | 77.42K |
| Interest Expense | 747.74K | 1.51M | 250.78K | 194.67K | 180.74K | 137.16K | 97.79K | 0 |
| Other Income/Expense | 252.69K | -685.78K | 373.84K | 89.28K | -32.91K | 267.35K | -137.69K | -465.98K |
| Pretax Income | 23.38M | 13.63M | 15.05M | 10.89M | 26.23M | 23.73M | 19.25M | 18.71M |
| Pretax Margin % | 12.72% | 14.06% | 15.5% | 10.54% | 25.21% | 26.65% | 24.18% | 24.72% |
| Income Tax | 4.84M | 2.79M | 3.46M | 4.71M | 5.28M | 4.69M | 3.82M | 3.23M |
| Effective Tax Rate % | 20.7% | 20.47% | 22.98% | 43.28% | 20.13% | 19.75% | 19.84% | 17.28% |
| Net Income | 18.55M | 10.84M | 11.63M | 6.24M | 20.95M | 19.05M | 15.43M | 15.48M |
| Net Margin % | 10.09% | 11.19% | 11.97% | 6.04% | 20.14% | 21.38% | 19.38% | 20.44% |
| Net Income Growth % | -26.27% | -6.73% | 86.22% | -70.2% | 10% | 23.42% | -0.3% | - |
| Net Income (Continuing) | 18.54M | 10.84M | 11.59M | 6.18M | 20.95M | 19.05M | 15.43M | 15.48M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 505.98K | 556.14K | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 58.15 | 40.00 | 49.00 | 27.00 | 89.00 | 79.00 | 64.00 | 77.00 |
| EPS Growth % | -44.54% | -18.37% | 81.48% | -69.66% | 12.66% | 23.44% | -16.88% | - |
| EPS (Basic) | - | 40.00 | 49.00 | 27.00 | 89.00 | 79.00 | 64.00 | 77.00 |
| Diluted Shares Outstanding | 319.05K | 273.72K | 239.4K | 234.11K | 236K | 241.4K | 241.4K | 200K |
| Basic Shares Outstanding | 319.05K | 273.72K | 239.4K | 234.11K | 236K | 241.4K | 241.4K | 200K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying MHUA stock.
For fiscal year 2024, Meihua International Medical Technologies Co., Ltd. (MHUA) reported total revenue of $96.9M. This represents a 28.0% increase compared to $75.7M in 2018.
Meihua International Medical Technologies Co., Ltd. (MHUA) is profitable, generating $10.8M in net income for the fiscal year ending 2024 with a net profit margin of 11.2%.
Meihua International Medical Technologies Co., Ltd. (MHUA) reported an operating income of $14.3M, resulting in an operating profit margin of 14.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Meihua International Medical Technologies Co., Ltd. (MHUA) generated $33.3M in gross profit for the year, representing a gross profit margin of 34.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Volume-Based Procurement Price Erosion
Revenue Stagnation Amid Market Normalization
According to the latest quarterly financial data, MHUA experienced a significant revenue contraction of 16.2% YoY in 2025Q2, signaling a departure from the previous periods of relative stability and suggesting that the company is struggling to find new growth catalysts in its core medical disposables segment.
The recent decline in top-line performance appears to reflect a combination of post-pandemic demand normalization and intensifying competition within the Chinese domestic market. Investors should monitor whether this trend represents a structural ceiling for the company's current product portfolio or merely a temporary lull in hospital procurement cycles.
Structural Margin Compression Under Pressure
As reported in recent income statements, MHUA's gross margin has compressed to 33.2% in 2025Q2, down from historical peaks near 39%, which indicates that the company is facing mounting pricing pressure on its medical disposables that it cannot fully offset through manufacturing efficiencies or product mix shifts.
The erosion of gross margins suggests that the company's pricing power is being challenged, likely by the expansion of centralized procurement policies in China. This trend warrants further investigation into whether the company can successfully pivot toward higher-margin Class III devices to stabilize its profitability profile.
Operating Leverage Deteriorating Amid Contraction
Based on the provided figures, MHUA's operating margin has fallen to 8.5% in 2025Q2, a sharp decline from the 26.5% levels observed in 2021Q4, demonstrating that the company is failing to maintain operating leverage as revenue growth turns negative and fixed costs remain relatively sticky.
The inability to scale operating income alongside gross profit suggests that the company's cost structure is becoming increasingly inefficient during this period of revenue decline. Analysts should consider whether management's current SG&A spending levels are sustainable if the top-line contraction persists into future quarters.
Vulnerability to Centralized Procurement Mandates
While the company maintains a clean balance sheet, the 35.8% decline in EPS reported in 2025Q2 highlights a significant risk, as the potential for further inclusion in China's Volume-Based Procurement programs may permanently impair the company's ability to maintain its historical double-digit net income margins.
Short-term observers might focus on the company's low debt levels, but the fundamental risk remains the potential for drastic price erosion on high-volume disposables. Investors should be cautious, as the current valuation may not fully account for the long-term margin compression inherent in the state-managed healthcare procurement environment.