The first-quarter report for 2026, disclosed on the same day, shows that the company achieved operating revenue of 2.887 billion yuan in the first quarter, a year-on-year increase of 15.76%, accelerating from the growth rate for the full year of 2025. Affected by non-cash factors such as changes in the fair value of financial assets like hedging and exchange gains/losses, the company’s net profit experienced periodic fluctuations in the first quarter. However, after deducting non-recurring gains and losses, the main business maintained a profitable trend, with the quality of core operations continuing to improve.
In its annual report, Intco Medical stated that in recent years, the disposable glove industry has undergone an adjustment phase shifting from “oversupply” to “supply-demand rebalancing.” The company has continuously advanced capacity optimization and market structure adjustments, effectively navigating the industry cycle, achieving steady growth in operating performance.
Stable Scale Advantage in Core Business, Diversified Layout Building Momentum for Growth
The disposable glove business remains the company’s core revenue source. As of the end of 2025, the company’s annualized production capacity for disposable non-latex gloves reached 103 billion units, including 70 billion nitrile gloves and 33 billion PVC gloves, with capacity scale reaching industry-leading levels and product yield rates consistently maintained above 99%. The company’s fourth-generation double-hand mold fully automatic production line has been implemented and applied, with supporting cogeneration projects continuously improving production efficiency and energy utilization efficiency. Leveraging deep cultivation of the domestic market, the company’s domestic revenue grew by 21.65% year-on-year, with sustained momentum in the local market.
Based on a global development layout, the company is methodically advancing overseas capacity construction and marketing network improvement. Overseas production bases in Vietnam and other locations have completed initial construction and commenced operations smoothly, while simultaneously deploying marketing service centers in multiple global locations to effectively hedge against risks from single-market fluctuations. On the foundation of stabilizing the core business, the company continues to optimize its product structure and enrich its diversified product matrix, including rehabilitation medical devices. Among these, revenue from physiotherapy and nursing products steadily increased by 38.08% year-on-year. Through continuous product iteration and innovative layout, the momentum of the second growth curve is being sustained, opening broad space for the company’s long-term high-quality development.
Intco Medical Business Segments
Significant Growth in Operating Cash Flow, Profit Quality Demonstrates Resilience
In 2025, Intco Medical’s net cash flow from operating activities reached 1.885 billion yuan, a year-on-year increase of 74.69%, far exceeding the revenue growth rate for the same period. The ample cash flow provides a solid foundation for the company’s overseas capacity construction, R&D investment, and shareholder returns.
Thanks to a stable operational foundation, the company proposed a 2025 profit distribution plan, distributing a cash dividend of 1.00 yuan (including tax) per 10 shares. The high-quality cash flow level objectively reflects the actual performance of the company’s operations, further enhancing its comprehensive risk resistance and sustainable development capabilities.
From a profit quality perspective, after excluding non-recurring gains and losses, the company’s core business profitability remained stable. In 2025, the net profit after deducting non-recurring gains and losses was 397 million yuan, fully demonstrating the company’s solid operational resilience.
Intco Medical
Steady Increase in R&D Investment, Technological Innovation Strengthens Barriers
In 2025, Intco Medical’s R&D expenses reached 404 million yuan, with an R&D expense ratio of 4.07%, significantly higher than the industry average. The company places high importance on technological R&D and innovation, with R&D expenditures expanding year by year, continuously deepening innovation in new material technologies and product matrix layout. It has launched new products such as Syntex™ synthetic latex gloves, Synmax™, and Synmax Pro disposable synthetic protective gloves. As of the end of the reporting period, the company and its subsidiaries held a total of 298 patents, establishing a solid foundation of technological reserves.
At the manufacturing level, the company has fully implemented advanced DCS control systems, with a single nitrile glove production line exceeding 1.6 kilometers in length. The intelligent production management system enables precise process control, energy consumption optimization, and stable product quality. Relying on continuous technological iteration, the company is steadily building differentiated competitive advantages.
Short-Term Profit Fluctuations Exist, Long-Term Operational Foundation is Solid
Affected by non-operational short-term factors such as exchange rate fluctuations and increased financial expenses, Intco Medical’s net profit attributable to the parent company in 2025 was 1.011 billion yuan. In the first quarter of 2026, changes in the fair value of financial assets related to hedging caused short-term disruptions to current profits. In response, the company adjusted its exchange rate hedging methods in April, planning to convert some RMB loans into USD or HKD loans. Leveraging the linked exchange rate mechanism between HKD and USD and the controllable cost advantages of HKD loans, the company aims to hedge exchange rate risks and keep related impacts within a limited range.
Based on the operational fundamentals, the company’s gross profit margin has steadily improved, and the core business continues to be profitable, demonstrating the company’s operational resilience during the industry adjustment cycle. The industry’s supply-demand structure is continuously optimizing, market competition is gradually becoming more rational, and the operational advantages of leading companies are further emerging.
Looking toward long-term development, the company will steadily accelerate the pace of overseas supply chain construction in 2026, advance overseas base construction, upgrade intelligent manufacturing levels, strengthen new product R&D and layout, and expand marketing networks. As the industry’s supply-demand landscape improves, the company’s leading competitive advantages will become more prominent, and profitability is expected to further strengthen. The company will continue to consolidate its comprehensive competitive strength in the global personal protective equipment field and maintain its industry-leading position.