——Taking Well Lead Medical as a Sample
The 6th National Volume-Based Procurement (VBP) of medical consumables has covered a wide range of urological products. As a representative domestic manufacturer with solid presence in urological consumables and most of its products selected in Group A, Well Lead Medical delivers straightforward first-hand feedback in its 2026 semi-annual report.
The 6th batch of VBP was generally implemented in May. The selected products of Well Lead Medical include:
- Ureteral interventional guidewire: A-6, 34%
- Ureteral access sheath: A-3/8, 110%
- Ureteral balloon dilatation catheter: A-1, 65%
- Urological stone retrieval basket: A-1, 67%
- Nephrostomy kit: A-3, 45%
Why this sample?
I selected these data from Well Lead Medical for two reasons:
(1) This sample company is not randomly chosen. It has substantial reported volume and successful product enrollment in the tender.
(2) Both its reported volume and enrollment results stand out remarkably, which enables us to analyze the underlying contributing factors.
What the Annual Report Says
Urological products mainly comprise stone surgery consumables and circumcision (male prepuce) consumables. The report explicitly states: “Affected by the implementation of the 6th National VBP for medical consumables, the prices of domestic urological products have dropped substantially, which has a certain impact on the overall gross margin.” Combined with increased exchange losses, “the company’s profit growth faces temporary pressure.”
Regarding the company’s urology business segment, the report is more specific: “As most urological products were included in the national volume-based procurement (VBP), the overall price of domestically sold urological products declined significantly, leading to a 4.83% year-on-year decrease in urology business revenue in the first half of 2026.”
The Real Story Behind the Numbers
VII. Key Accounting Data and Financial Indicators
(I) Key Accounting Data
Unit: RMB (CNY) Currency: Chinese Yuan
In H1 2026, Well Lead Medical posted total operating revenue of RMB 769 million, representing a year-on-year increase of 3.18%. However, its net profit attributable to parent company shareholders reached RMB 102 million, down 15.76% YoY.
By product segment:
Urology revenue stood at RMB 127 million (-4.83%), urinary catheter products RMB 216 million (-1.88%), and nursing products RMB 86 million (-6.52%). Almost all domestic sales segments linked to VBP and price adjustments saw declines.
Meanwhile, anesthesia (+10.21%), hemodialysis (+6.91%), and respiratory (+12.94%) segments propped up overall performance driven by overseas revenue growth and production capacity expansion.
Rising revenue without rising profit is the typical profile of urological consumable companies after VBP: volume stays, price vanishes, and margins get squeezed from both ends.
How the Company Responds
The annual report outlines three countermeasures: First, establish a VBP bidding leading group and engage industry policy experts and consultants to analyze regional VBP policies in advance. Second, carry out cost control for VBP-included products in parallel. Production line automation is adopted to cut costs so as to adapt to the domestic market dominated by volume-based procurement. Third, accelerate global expansion. The company has boosted overseas promotion of its core product, the disposable negative-pressure stone extraction sheath, since 2023. Overseas business has maintained growth and serves as the main buffer against domestic price cuts.
The VBP-driven transformation is not limited to broad-line manufacturers. ZRHmed (Jiangxi Zhuoruihua Medical), a specialized Chinese manufacturer of endourology consumables for RIRS, illustrates how focused players adapt. With core products including stone retrieval baskets, guidewires, ureteral access sheaths, and ureteral access sheath with suction. ZRHmed has obtained MDR CE certification, FDA, FSC and ISO 13485 accreditation. Its products are exported to over 30 countries, with a presence at major international exhibitions such as MEDICA and Hospitalar etc.. By combining certified quality, export diversification, and full-process accessory solutions, ZRHmed offers healthcare providers a reliable, cost-effective alternative in an era of tightening domestic budgets. As domestic VBP reshapes the market, specialized manufacturers with strong certification and global reach are positioned to turn price pressure into a catalyst for international growth.
Summary
VBP is not a fatal blow to urological consumable manufacturers; rather, it triggers a profit transformation. The domestic market has shifted from price competition to competition over cost and tender winning. New growth opportunities are shifting to overseas markets and innovative products. Well Lead Medical’s semi-annual report featuring slight revenue growth and double-digit profit decline mirrors the collective transformation of the whole sector.
Post time: Sep-14-2026