Sino-Singapore Health｜It’s not so easy to make money from hospitals! Performance of medical informatization-related manufacturers is under pressure

China News Service, Beijing, November 11 (Luo Chunhao) Recently, listed companies related to medical informatization have successively announced their third quarterly reports, and many companies have suffered losses.

Specifically, Weining Health's revenue in the first three quarters was 1.482 billion yuan, a year-on-year increase of 14.38%, and the net profit attributable to the parent company was a loss of 241 million yuan.

Chuangye Huikang's revenue in the first three quarters was 688 million yuan, a year-on-year decrease of 20.13%, and the net profit attributable to the parent company was a loss of 311 million yuan, which further expanded from the 122 million yuan in the same period last year.

Jiahe Meikang's revenue in the first three quarters was 202 million yuan, a year-on-year decrease of 38.76%; the net profit attributable to the parent company was 122 million yuan.

In addition, Neusoft Group's revenue in the first three quarters was 7.029 billion yuan, a year-on-year decrease of 6.18%, and the net profit attributable to the parent company was a loss of 243 million yuan, which was a profit in the same period last year. Neusoft Group is a diversified software group, and the medical sector may not be the main reason for losses. However, its "medical health and social security" sector revenue dropped from 2.261 billion yuan in 2024 to 1.902 billion yuan in 2025. In the first half of 2026, it was 542 million yuan, a year-on-year decrease of 20.38%.

According to "China's Medical Core Business System Market Share, 2025" released by IDC in July this year, competition in China's medical core business system market will be fierce in 2025, with the top seven manufacturers accounting for a total of 40.1% of the market share. Among them, Weining Health, Neusoft Group, and Chuangye Huikang all rank in the top five in terms of market share.

Why are the performance of medical informatization-related manufacturers under pressure? Different companies give different explanations.

Jiahe Meikang analyzed the main reasons for the decline in operating income in its third quarter report, saying that due to the weakening ability of the medical industry to pay financial appropriations, hospital customer procurement budgets were compressed, and the company's orders in the previous year were reduced, resulting in a decrease in acceptance projects in this period; in addition, some projects were delayed in acceptance due to factors such as the timing of the arrival of budget funds, and the implementation service cycle was extended, further increasing the decrease in income in this period.

Chuangye Huikang mentioned in its third quarterly report that due to the impact of the macro environment, the informatization budgets of some medical institutions have tightened, and the project bidding and acceptance cycles have been extended, resulting in a year-on-year decline in the company's operating income; at the same time, the company continues to increase its R&D investment in cutting-edge fields such as medical AI, large models, and localized adaptation. R&D expenses remain high, and related new products are still in the market cultivation and scenario verification stages. It will take time for large-scale commercial transformation, and it will not form effective revenue contributions in the short term. In addition, industry competition is becoming increasingly fierce, coupled with factors such as the lengthening of the collection cycle of accounts receivable and impairment provisions, which will have a periodic impact on the current net profit.

The loss of a single company may be due to operational or strategic issues, but the profits of leading manufacturers that have disclosed performance are generally under pressure, indicating that the industry is entering a stage of adjustment. The IDC report believes that China's core medical business system software market will exceed 10 billion yuan for the first time in 2025, but traditional medical software construction has entered a clear "stagflation period."

Looking back on the development history of the industry, the medical informatization industry has experienced multiple rounds of policy bonus periods. From the early construction of hospital HIS systems to policies such as electronic medical record rating and interconnection rating, the medical informatization market continues to expand, and medical informatization manufacturers have also achieved rapid development driven by policies.

However, a hospital service operations manager from a medical information technology manufacturer told Sino-Singapore Health that in the past two years, the systems and ratings that hospitals should build have been basically completed. The market has changed from "hospitals have to be built" to "there is nothing to build." The number of incremental projects available to manufacturers has decreased, and some manufacturers are under pressure on their cash flow and have begun to reduce costs and increase efficiency. On the other hand, hospitals’ operating capabilities are uneven, and their own cash flow is difficult to support excessive new investments in medical informatization. In the past two years, most of the projects undertaken by informatization vendors have been upgrades to the hospital’s original HIS system, and most of the vendors have focused on competition in the existing market. In this context, medical informatization manufacturers have to turn to value-driven and service operation-driven.

It is worth noting that many manufacturers in the industry are continuing to increase their artificial intelligence deployment. For example, Weining Health has promoted AI as a company strategy, anchored the strategic positioning of "1+X" expansion with AI, promoted the evolution of medical software to AI Native medical systems, and promoted the transformation of R&D, delivery and other links to AI-driven production methods; Entrepreneurship Huikang has focused on investing in BsoftGPT medical large models, Yunshu intelligent agents and other directions.

However, the person in charge of hospital service operations of the above-mentioned manufacturers believes that information manufacturers are building core hospital systems, but the possibility of in-depth integration with AI to change the status quo of the industry in the future cannot be seen in the short term. For example, AI-assisted diagnosis, AI medical record writing and other applications involving core aspects of diagnosis and treatment can be piloted, but hospitals are still relatively cautious about large-scale use. From the perspective of hospital information needs, "this year hospitals are more willing to invest in business systems, such as full-course management, construction of traditional Chinese medicine prescription malls, etc." (over)