Xiangyu Medical Reports 42.41% Year-on-Year Increase in R&D Investment for 2024

China Securities News (Wang Lu) -- Sunnyou Medical disclosed its 2024 annual report and 2025 Q1 report on the evening of April 24. In 2024, the company achieved operating revenue of 744 million yuan, a year-on-year decrease of 0.17%; net profit attributable to shareholders of 103 million yuan, a year-on-year decrease of 54.68%; and non-recurring net profit of 89.9745 million yuan, a year-on-year decrease of 55.90%. In Q1 2025, the company achieved operating revenue of 186 million yuan, a year-on-year increase of 10.02%, net profit attributable to shareholders of 22.951 million yuan, a year-on-year decrease of 41.26%, and non-recurring net profit of 18.7081 million yuan, a year-on-year decrease of 48.72%.

Sunnyou Medical pointed out in its annual report that, in 2024, facing opportunities and challenges, the company adhered to technological innovation and continuously improved its management level and operational capabilities, with operating revenue remaining basically flat compared to the previous year. The company continued to attract high-end rehabilitation technology talents from various regions, significantly increasing the number of R&D personnel, leading to a rise in R&D personnel salaries and related expenses. Additionally, the completion and gradual utilization of the company’s construction projects resulted in increased depreciation and amortization compared to the previous year, causing a decline in net profit.

Adhering to technological innovation, research and development achievements continue to emerge. As a leading R&D enterprise in China's rehabilitation medical device industry, Sunnyou places high importance on R&D work. In 2024, the company’s R&D investment reached 152 million yuan, increasing by 42.41% year-on-year; R&D investment accounted for 20.45% of total operating revenue, rising by 6.12 percentage points from the previous year. The company and its subsidiaries have 720 R&D personnel, making up 30.76% of the total workforce. The company has established R&D centers in headquarters, Zhengzhou, Tianjin, Nanjing, Chengdu, Shenzhen, Shanghai, Hangzhou, Xi'an, and other locations. It has set up a rehabilitation robot laboratory, initiated the construction of the Sun-BCI Lab for brain science, attracted top rehabilitation technology talents from various regions, ensuring the company maintains a leading position in rehabilitation technology within the industry.

The company's core technologies, such as patents, have continued to make breakthroughs, with 467 new patents added, accumulating to a total of 1,921. Among these, 107 are new invention patents, accumulating to 168 in total; 58 new software copyrights were added, bringing the total to 199; 69 new provincial scientific and technological achievements were added, accumulating to 193; and 28 new medical device registration certificates/filing credentials were obtained, bringing the total to 346.

Expand Overseas Layout, Deepen International Cooperation. Xiangyu Medical Co., Ltd. focuses on co-building countries and regions along the "Belt and Road" and continues to accelerate its "going global" process. In 2024, the company's export business achieved certain growth, with products mainly sold to more than 30 countries and regions including Southeast Asia, the Middle East, Central Asia, South America, and Africa; some products have passed the EU CE certification and continuously obtained medical device registration certificates in countries such as Thailand, Vietnam, Uzbekistan, Indonesia, and Malaysia.

Stable Dividends and Active Share Repurchases. The company plans to distribute a cash dividend of RMB 2.40 (including tax) for every 10 shares to all shareholders. The total proposed cash dividend is RMB 37.0049 million (including tax), accounting for 35.95% of the net profit attributable to shareholders of the listed company in 2024. The cash dividend payout ratio has been no less than 30% for three consecutive years. In 2025, while ensuring the development needs of its core business, the company will balance corporate operations with shareholder returns. It will maintain a dividend payout ratio of no less than 30% for 2025, establishing a "long-term, stable, and sustainable" shareholder value return mechanism.

In 2025, Sunnyou will continue to prioritize technological innovation as the primary driver of development, steadily increase R&D investment, and continuously launch new products with high added value and superior quality. The company will further advance and optimize integrated clinical rehabilitation solutions. While focusing on its areas of strength, Sunnyou will also introduce more products and solutions that meet clinical needs and the demands of the medical-rehabilitation-care market in fields such as AI healthcare, mental health, brain-computer interfaces, and rehabilitation robotics. By consistently enhancing the company’s overall R&D capabilities, Sunnyou aims to maintain its leading position in rehabilitation technology within the industry.