Comprehensive Analysis of Wanjia Group (00401.HK)'s Financial Performance and Industry Prospects

This analysis is based on Wanjia Group (00401.HK)'s financial reports [0][4][5] and China’s hemodialysis industry data [0][7], aiming to evaluate its 2025 financial performance and industry opportunities and risks. The narrowing of the company’s annual loss indicates operational improvement, but the interim loss and revenue decline reflect short-term challenges; the rapid industry growth provides room for long-term development, but policy compliance remains a key consideration.

• Annual Performance
  : The full-year loss in 2025 was HK$6.616 million, a decrease of 83.45% compared to the same period last year [0][4]; the turnover as of the end of March was HK$162 million, a year-on-year decrease of 10.7% [0].
• Interim Performance
  : The interim revenue in 2025 was HK$85.706 million (year-on-year +2.4%), but it turned from profit to a loss of HK$712,000 [0][5].
• Financial Position
  : Cash and cash equivalents were approximately HK$24.083 million, with relatively sound liquidity [0].
• Reasons for Loss
  : Mainly due to the hemodialysis treatment centers needing to refund approximately HK$5.5 million in partial treatment fees from 2021 to 2024 [0].

• Market Size
  : China’s hemodialysis market reached RMB5.322 billion in 2024 and is in a stage of rapid development [0][7].
• Policy Environment
  : National policies support the development of the medical device industry, providing a good policy foundation for the industry [0].

• Operational Improvement
  : The narrowing of the annual loss indicates that the company has achieved results in cost control or business structure optimization [0][4].
• Short-term Challenges
  : The interim loss and revenue decline reflect the short-term impact of adjustments to medical insurance policies on the business [0][5].
• Industry Opportunities
  : The rapid growth of the hemodialysis market provides broad space for the company’s long-term development [0][7].

• Policy Risk
  : Adjustments to medical insurance payment policies may continue to affect revenue and profit levels [0][7].
• Revenue Volatility
  : The 10.7% year-on-year decrease in turnover in 2025 indicates that business stability needs to be improved [0].

• Industry Growth
  : The rapid expansion of China’s hemodialysis market provides opportunities for the company’s business expansion [0][7].
• Policy Support
  : Policy dividends for the medical device industry are expected to reduce compliance costs and boost market demand [0].

Wanjia Group (00401.HK)'s 2025 financial performance shows the characteristics of ‘long-term positive, short-term pressure’: the narrowing of the annual loss reflects improved operational efficiency, but the interim loss and revenue decline reflect the short-term impact of policy adjustments. The company has a sound cash position and the ability to cope with short-term challenges; the rapid development of China’s hemodialysis market and policy support lay the foundation for long-term growth. Investors need to pay attention to the continuous impact of policy changes on the company’s business and the pace of release of industry growth dividends.