Weigao Group proposes higher interim dividend despite profit dip

Shandong Weigao Group reported unaudited revenue of RMB6.64bn for the six months ended June 30, 2025, a marginal 0.1% increase year-on-year. Net profit attributable to owners decreased by 9.0% to RMB1.01bn, and excluding extraordinary items, decreased by 12.7% to RMB967.1m. Despite this, the board proposed an interim dividend of RMB0.0969 per share, an increase from RMB0.0919 in the previous year, subject to shareholder approval at the Extraordinary General Meeting on October 16, 2025.

The group's cash and bank balance stood at RMB8.95bn, with net cash flow from operating activities at RMB881.6m. Research and development expenses amounted to RMB315.5m, or 4.7% of revenue, supporting product innovation and market expansion. The company also announced the proposed adoption of a new H Share Incentive Scheme to attract and retain talent, which will be funded by existing or treasury H shares and is subject to shareholder approval.

Key investments include RMB433.6m for property and production facilities, RMB308m contributed to the Songyuan Healthcare Industry Fund, and planned investments for new production lines totaling RMB250m and equipment upgrades of RMB340m. During the period, the company repurchased 8,132,400 H shares for an aggregate of HK$44.66m, holding them as treasury shares.