Wondfo Biotech (300482.SZ) In-Depth Analysis: Can Overseas Business Growth Offset the Pressure from Domestic IVD Centralized Procurement?

Based on the comprehensive data I have obtained, let me present the in-depth analysis report on Wondfo Biotech.

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Wondfo Biotech (Guangzhou Wondfo Biotech Co., Ltd.) is a leading enterprise in China’s POCT (Point-of-Care Testing) sector. Listed on the Growth Enterprise Market of the Shenzhen Stock Exchange in 2015, it is known as the “first POCT stock” in China. The company is mainly engaged in the R&D, production, sales and services of rapid diagnostic reagents and supporting instruments, with products sold to more than 150 countries and regions worldwide[1][2].

• Market Cap: Approximately USD 992 million
• Stock Price: USD 20.91 (Current Price)
• 52-Week Price Range: USD 19.26 - 26.48
• P/E Ratio: 38.02x

Looking at the stock price trend, the company has fallen 33.17% cumulatively in the past three years and 70.69% in the past five years, showing a long-term downward pressure trend[0].

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According to Wondfo Biotech’s 2025 annual performance forecast released in January 2026, the company expects to achieve a net profit attributable to shareholders of RMB 46 million to 69 million, a

; its non-recurring profit and loss adjusted net profit is expected to be -RMB 15 million to -RMB 7.5 million, a year-on-year decline of 103.02% to 101.51%[1][2].

This will be Wondfo Biotech’s worst performance since its listing in 2015:

• Net profit attributable to shareholders will hit a new low since listing
• Non-recurring profit and loss adjusted net profit will turn to a loss for the first time since listing

Looking at quarterly data, Wondfo Biotech’s performance decline shows a continuous expansion trend[1][2]:

Period	Operating Revenue	YoY Change	Net Profit Attributable to Shareholders	YoY Change
Q1 2025	RMB 800 million	-7.06%	RMB 189 million	-13.37%
H1 2025	RMB 1.246 billion	-20.92%	RMB 189 million	-46.82%
Q3 2025	RMB 1.69 billion	-22.52%	RMB 134 million	-69.32%
Q3 2025 (Single Quarter)	-	-	-RMB 55.4591 million	-169.21%

Notably, in Q3 2025, the company recorded a

, with a year-on-year decline of 169.21%, which is an extremely rare quarterly loss in the company’s history.

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The direct cause of Wondfo Biotech’s sharp performance decline in 2025 is the

, mainly affected by the following factors:

1. Impact of VAT rate adjustment
2. In-hospital business is under volume and price pressure due to medical industry policies
3. Gross profit margin decline due to terminal price cuts and product structure changes

According to industry analysis, the overall operation of the IVD industry has been sluggish since 2025, and the third quarter is still in the industry consolidation period. Wondfo Biotech’s performance decline is not an isolated incident, but a

[1][3].

Other companies in the same industry also face severe challenges[3]:

• Dean Diagnostics
  : Net profit in the first three quarters of 2025 was only RMB 56.7048 million, a decline of 56.67%
• Wantai Bio
  : Reported a direct loss of RMB 173 million in the first three quarters of 2025, a year-on-year decline of 165.04%
• Kingmed Diagnostics
  : Also faces performance pressure

This indicates that the IVD centralized procurement policy has caused a systemic impact on the entire industry, and the difficulties faced by Wondfo Biotech are common in the industry.

In the domestic market, Wondfo Biotech faces the following challenges[1][2]:

• Primary Healthcare Market
  : Revenue from colloidal gold and fluorescent product lines declined, leading to reduced profits
• Grade Hospital Market
  : Facing fierce competition and price pressure
• Chemiluminescence Business
  : Despite growth, it is still in the investment phase

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Despite the pressure on domestic business, Wondfo Biotech’s overseas business shows a

and has become an important support for the company’s overall performance[1][2]:

• Overseas revenue proportion exceeds domestic business for the first time
  , providing important support for the company’s sustainable growth
• Overseas business progressed smoothly in the first three quarters of 2025
  , maintaining steady growth
• Deepened localization process in key countries
  , with a continuous increase in the market share of small and medium-sized laboratories in the international market

In 2025, Wondfo Biotech adopted an active expansion strategy in overseas markets:

• Established a subsidiary in
  Russia
  in the first half of 2025
• Established a subsidiary in
  the Philippines
  in the first half of 2025
• Accelerated the overseas introduction of technical platforms such as chemiluminescence and electrochemistry

• Drug testing business shows a
  recovery trend
• Signed a
  long-term supply agreement for respiratory tri-combination test products
  with major US customers
• Continuously improved the new product portfolio including COVID-flu tri-combination test and influenza detection reagents
• The introduction of respiratory business has brought significant incremental growth

• Relying on the
  cost advantage
  and
  product performance advantage
  of the large domestic market
• Achieved breakthroughs in chemiluminescence, immunofluorescence, and blood gas product categories
• Promoted market access in overseas countries

A number of new products completed registration and were successfully launched in 2025[1][2]:

• Human Microsatellite Instability (MSI) Detection Kit (Fluorescent PCR Melting Curve Method)
• Coagulation Four-Item Detection Reagent (Electrochemical)
• Tumor Marker Detection Reagent (Chemiluminescence)
• New products such as
  US Influenza A/B Combined Test (OTC)

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Based on the latest data[0]:

Indicator	Value	Evaluation
ROE (Return on Equity)	4.64%	Low
Net Profit Margin	10.08%	Medium
Current Ratio	7.78	Very Healthy
Quick Ratio	6.95	Very Healthy
Debt Risk	Low Risk	Stable

1. Conservative Accounting Policies
   : The company shows conservative accounting characteristics with a high depreciation/capital expenditure ratio
2. Healthy Cash Flow
   : The latest free cash flow is RMB 43.49 million, with sufficient liquidity
3. High R&D Investment
   : R&D investment reached RMB 265 million in the first three quarters of 2025, maintaining high-intensity investment
4. High Expenditure
   : To consolidate product competitiveness, the company maintains high R&D and sales expenses

The main reasons for the sharp decline in net profit attributable to shareholders include[1][2]:

1. Terminal price cuts and product structure changes in the domestic market
   led to a decline in consolidated gross profit margin
2. High R&D and sales expenses
   to maintain competitiveness
3. Non-core business divestment
   resulted in certain impairment losses

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Based on comprehensive analysis, I believe that

.

1. Although overseas revenue proportion has increased, its absolute scale is still insufficient to offset the domestic decline
   • Domestic business revenue still accounts for a considerable proportion, and the decline caused by centralized procurement is significant
   • Although overseas business is growing, it takes time to accumulate

2. Impact of centralized procurement will continue to deepen
   • 2025 is only the first year of the full implementation of the centralized procurement policy
   • It is expected that the scope of centralized procurement will continue to expand in 2026, and price pressure will persist

3. R&D and sales expenses are difficult to reduce in the short term
   • To maintain competitiveness, the company needs to maintain high-intensity R&D investment
   • Overseas market expansion also requires continuous sales expense support

1. In-depth advancement of overseas localization strategy
   • Subsidiaries in Russia and the Philippines are put into operation
   • Long-term agreements for respiratory products in the North American market provide a stable revenue foundation
   • Continuous increase in market share of small and medium-sized laboratories

2. Product structure upgrade
   • The proportion of quantitative products shows a clear upward trend
   • Introduction of high-margin products such as chemiluminescence and immunofluorescence
   • AI innovative products bring new growth points

3. Industry integration opportunities
   • The consolidation period of the IVD industry may accelerate the survival of the fittest
   • Leading enterprises with internationalization capabilities will gain competitive advantages

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According to management disclosure, in 2026 Wondfo Biotech will[1][2]:

• Achieve continuous penetration into hospital central laboratories through
  luminescent and molecular product lines
• Rapidly improve revenue structure

• Continue to leverage brand and channel advantages
• Expand coverage to achieve high growth
• Strengthen the entire R&D, production and sales chain in the North American market

• Leverage existing AI layout and breakthroughs
• Achieve commercialization in pathology and clinical diagnosis
• Promote the comprehensive expansion of business from POCT to IVD

1. Policy Risk
   : The scope and intensity of IVD centralized procurement may further expand
2. Exchange Rate Risk
   : Overseas business expansion faces exchange rate fluctuations
3. Competition Risk
   : Intensified domestic and international competition may compress profit margins
4. R&D Risk
   : Uncertainty exists in new product R&D and commercialization

Dimension	Assessment
Short-Term Performance	Obviously under pressure, with a sharp performance decline in 2025
Medium-Term Growth	Relies on overseas business expansion and product upgrade
Long-Term Value	International layout is expected to reshape competitive advantages
Valuation Level	P/E 38x, at the medium level in the industry

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The current dilemma faced by Wondfo Biotech is a

. From the data:

1. Centralized procurement pressure is real and severe
   : The expected 90% decline in net profit in 2025 and the first-ever loss in non-recurring profit and loss adjusted net profit fully demonstrate the severity of policy pressure
2. Overseas business is hope but not a panacea
   : Although overseas business maintains steady growth and its revenue proportion exceeds domestic business for the first time, its absolute scale still cannot fully offset the sharp decline of domestic business in the short term
3. Long-term internationalization strategy is the right direction
   : The company’s measures such as accelerating overseas localization layout, strengthening the North American market, and signing long-term supply agreements have laid a foundation for medium- and long-term development

: The growth of overseas business the performance pressure brought by domestic centralized procurement, but . The company’s investment value is more reflected in the advancement of long-term internationalization strategy and the commercialization of AI innovative products. It is recommended that investors pay attention to the fulfillment of overseas business growth in 2026 and marginal changes in domestic centralized procurement policies.

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[1] Economic Information Daily - Wondfo Biotech’s 2025 Net Profit Expected to Drop by About 90%, Overseas Business May Support Future Growth (http://jjckb.xinhuanet.com/20260113/479a5c023bc9419c8390382cde80d0e9/c.html)

[2] Eastmoney - Wondfo Biotech: Adhere to “AI Innovation + Internationalization” Strategy to Promote Business Transformation and Upgrading (https://finance.eastmoney.com/a/202601093614504266.html)

[3] Sina Finance - Wondfo Biotech’s 2025 Net Profit Expected to Drop by About 90%, Overseas Business May Support Future Growth (https://finance.sina.com.cn/roll/2026-01-13/doc-inhhcnuc5069231.shtml)

[4] NetEase - “Inflection Point” Not Yet Arrived: Wondfo Biotech Records First Loss in 10 Years of Listing, In-Hospital Business Hit by Both Volume and Price Decline (https://www.163.com/dy/article/KJ3IMLN60512D03F.html)

[0] Jinling API Market Data