Sales Expenses of Listed Medical Device Companies

01

IVD Sales Expense Ratio Rises Significantly

According to iFinD data, in the first three quarters of 2025, the total sales expenses of the top 100 A-share listed medical device companies reached 26.82 billion yuan. The top 10 companies are Mindray Medical, United Imaging Healthcare, Yuyue Medical, Sinocare, Lepu Medical, Cocodemer Medical, Xinhua Medical, Haohai BioPharma, Autobio Diagnostics, and Neobio Technology.

Among these companies, 18 have a sales expense ratio below 10%, 34 between 10%-20%, 28 between 20%-30%, 13 between 30%-40%, and 7 with a ratio exceeding 40%. Tianzhihang has the highest sales expense ratio at 54.82%. From January to September this year, the company achieved operating income of approximately 187 million yuan, a year-on-year increase of 103.51%. Currently, domestic surgical robots are still in the growth stage, with generally high R&D expense ratios and sales expense ratios.

Companies such as Intco Medical, Zhonghong Medical, and Shandong Pharmaceutical Glass have relatively low sales expense ratios, mainly related to their respective sub-sectors and relatively low gross profit margins.

Overview of Sales Expenses of A-share Listed Medical Device Companies

Charted by: Cyberlan Medical / Data Source: iFinD

Sales expense ratio is mainly related to industry characteristics, product attributes, sales channel models and other factors. Sales expenses of medical device companies mainly include marketing promotion expenses, sales personnel salaries, customer entertainment expenses, travel expenses, academic promotion expenses, etc.

According to Huaxin Securities' analysis, from 2023 to 2025, the overall sales expense ratio of the medical device sector has shown an upward trend but basically fluctuated slightly. The R&D expense ratio has remained basically between 8-9%, with a slight decrease in 2025 but not a significant drop.

Specifically, from 2023 to 2025, the sales expense ratio in the medical equipment field has increased. Companies may need to invest more sales resources to support revenue growth. The sales expense ratio in the medical consumables field has slightly decreased overall, which is related to the reduction in sales expense investment after centralized procurement.

The sales expense ratio in the in vitro diagnostic (IVD) field has increased the most significantly, from 15.87% in the first quarter of 2023 to 22.83% in the third quarter of 2025. It has continued to rise from January to September this year and is currently significantly higher than the other two sectors. The main reasons are related to the relative rigidity of sales expenses and the overall decline in revenue. At present, DRG/DIP and package splitting have a great impact, and the industry inflection point has not yet arrived.

02

Equipment Tendering Recovers;

IVD Still Under Pressure

From the 2025 third-quarter report, the overall revenue growth rate of the medical device sector is still negative, but the single-quarter revenue growth rate in 2025Q3 has turned positive. In terms of gross profit margin, it has shown a slight downward trend since 2025, mainly related to the advancement of centralized procurement in various fields such as equipment, consumables, and IVD.

Among them, the equipment sector has recovered. From January to September this year, the terminal procurement of medical equipment has continued to recover. Various companies have continued to destock, and the Q3 financial statements show signs of recovery, with a significant year-on-year increase in revenue. The decline in net profit attributable to shareholders and non-net profit attributable to shareholders has narrowed, and the gross profit margin has basically stabilized.

According to Guojin Securities data, the revenue of the medical equipment sector increased by 10.65% year-on-year in 2025Q3, indicating that the downward adjustment period of the domestic medical equipment industry has ended.

In the first half of this year, domestic equipment tendering demand has shown a recovery trend. At the same time, the market share of domestic leading enterprises has continued to increase, and the deinventory of channel inventory has entered the final stage. It is expected to accelerate recovery in Q4. However, the centralized procurement price of mid-to-low-end products in the county-level market is relatively low, which still has a partial impact. In the future, with the increase in the proportion of high-end products and overseas business of leading enterprises, the gross profit margin is expected to gradually recover.

For the medical consumables sector, according to Guojin Securities data, the single-quarter revenue in 2025Q3 decreased by 0.50% year-on-year. Against the background of the national promotion of the DRG policy, some surgical demand has been under slight pressure in the short term. At the same time, changes in tariff policies have led to certain price pressure on the export of some low-value consumables.

The sales expense ratio of medical consumables reached 13.25% in Q3, an increase of 0.80 percentage points year-on-year and 0.74 percentage points month-on-month. Against the background of increasingly fierce competition, the investment in marketing expenses of enterprises has also shown a significant growth trend.

The single-quarter revenue of the in vitro diagnostic sector decreased by 13.07% year-on-year in 2025Q3. Measures such as DRG/DIP and hospital inspection mutual recognition have reduced many unnecessary testing demands, and the industry demand is under obvious pressure in the short term. In addition, the continuous implementation of volume-based procurement has promoted product price reductions. However, in the long run, it is also expected to drive the improvement of domestic localization rate, and the market share of leading enterprises will accelerate growth.

Overall, the pressure on the medical device sector still exists, but the dawn is ahead. Would you like me to sort out a simplified English summary document focusing on core data and industry trends for your quick reference?