66 IVD companies submit semi annual reports: easy to increase revenue but difficult to increase profits

As of August 2026, all 66 domestic IVD listed companies have disclosed their semi annual reports. The three rankings of revenue, growth rate, and net profit show an unprecedented "misalignment" - some companies have seen revenue growth of over 30% but are still losing money, while others have seen a significant improvement in profits despite a decrease in revenue. Through this report card, a clear signal is being released: China's IVD has bid farewell to the stage of widespread growth relying on market expansion and officially entered the era of testing business quality.

1．Half year report 'misalignment': growth and profitability are decoupling

According to the total revenue ranking, Fosun Pharma and Mindray lead with 20.442 billion yuan and 17.747 billion yuan respectively, but only 4 out of the top ten companies have achieved positive revenue growth, and most top companies have not yet escaped the pressure of industry adjustment.

More noteworthy is the divergence between growth and profitability. Among the top ten companies in terms of total revenue growth rate, Re Jing, Kangwei Century, Wantai, Huada Intelligent Manufacturing, and Yirui are still in a loss making state; Pumen Technology's revenue increased by 19.15%, but its net profit decreased by 34.80%. On the other hand, Dean Diagnostics' net profit surged by 2160%, but profit growth mainly relied on cost reduction and efficiency improvement, as well as narrowing credit impairment losses - some companies' performance improvements were "saved" rather than "earned".

Among the top ten companies in terms of net profit, only the top three companies have a combined net profit of nearly 9.6 billion yuan, accounting for 68.26% of the total net profit of 66 enterprises. The concentration of the top is extremely high, and on the loss making list, five companies including Oriental Biotechnology, Huada Intelligent Manufacturing, Wantai, Rejing, and Kehua have not crossed the breakeven line despite their positive revenue growth.

2． Why is it easy to increase income but difficult to increase profits?

The normalization of centralized procurement, mutual recognition of inspection results, and DRG payment reform continue to exert multiple pressures on industry profits. In the first quarter of 2026, 43 out of 64 IVD companies were operating at a loss. When terminal reagent prices are continuously compressed, raw material costs - the largest variable cost in reagent production - become the key variable determining whether a company can make profits.

Industry analysis indicates that the profit pool of the industrial chain is shifting towards upstream raw materials and downstream scale platforms. With midstream manufacturers facing extreme cost control pressure, their demand for localization of core raw materials such as enzymes, buffering agents, color substrates, etc. is unprecedentedly high. The upstream core raw materials are accelerating the breakthrough of import dependence, and the domestication rate of midstream instruments and reagents continues to rise.

Mindray Medical acquired the globally renowned IVD raw material company, Hai Peptide Biotechnology, in 2021, achieving independent and controllable core technology in the field of chemiluminescence raw materials; The self-sufficiency rate of core raw materials for Mike Biology has increased to over 70%. The actions of top enterprises have already demonstrated that raw material autonomy is not just a bonus, but a bottom line for survival.

3．New Desheng's perspective: Where are we located?

Hubei Xindesheng Material Technology Co., Ltd. has been deeply involved in the IVD reagent raw material track for 20 years, focusing on the research and production of core products such as biological buffering agents, enzyme preparations, color substrates, and blood collection tube additives. In 2026, the company was selected as a single champion enterprise in the manufacturing industry in Hubei Province.

The data from the semi annual report confirms our long-term judgment: when terminal prices are pushed to the limit by centralized procurement, the quality and cost efficiency of upstream raw materials can truly help reagent manufacturers maintain their profit bottom line.

Biological buffering agents: more than 50 products including Tris, HEPES, MOPS, etc., with a stable purity of over 99%. High purity means fewer inter batch differences and lower repeat detection rates - this is an implicit cost savings.

Enzyme preparations: lactate dehydrogenase (LDH), uricase (UO), creatine kinase isoenzyme (CK-MB), etc., with high activity and stability, help reagent manufacturers achieve better detection performance with less raw material usage.

Chromogenic substrates: TOOS, MAOS, ALPS, etc. benchmark against international standards; EPS-G7 amylase substrate and DGGR lipase substrate have achieved kilogram scale mass production - reagent manufacturers can get rid of import dependence and obtain stable and more cost-effective supply.

Blood collection tube additives: heparin lithium, heparin sodium, EDTA dipotassium/tripotassium, serum separation gel, etc., covering the entire process of blood sample pretreatment.

The company has two R&D and production bases in Gedian and Huanggang (70 acres), with an annual production capacity of 5000 tons for all categories.

The truth revealed by 66 semi annual reports is that the industry has entered a stage of stock competition, where the competition is no longer about whose channels are wider and whose brands are louder, but whose supply chain is deeper, raw material costs are lower, and quality is more stable.

For IVD reagent manufacturers, in an era where increasing revenue is easy but increasing profits is difficult, upstream raw materials are the "watershed". New Desheng will continue to focus on the research and production of IVD reagent raw materials, using higher quality and more cost-effective products to help partners build true cost barriers in the industry reshuffle.

Hubei Xindesheng Material Technology Co., Ltd. - Focusing on IVD reagent raw materials to assist in accurate diagnosis