Sinocare Inc. (Sinocare) (300298)

Equity Research Report　|　Industry: Blood Glucose Monitoring and Chronic Disease POCT Medical Devices　|　Report Date: September 13, 2026　|　As of the September 11, 2026 close; moving averages, MACD, RSI and Bollinger Band platform indicators are primarily as of September 10, 2026, while certain September 11 indicators are simplified recalculations based on publicly available closing prices or qualitative judgments.

This report was automatically compiled by AI based on publicly available information and is provided for reference only. It does not constitute investment advice.

1. Executive Summary

Sinocare focuses on blood glucose monitoring, CGM, chronic disease POCT and digital diabetes health management. In the first half of 2026, the company generated revenue of RMB 2.537 billion, up 12.08% year on year; net profit attributable to shareholders was RMB 221 million, up 22.52%, while non-recurring-adjusted net profit attributable to shareholders increased 32.87%, indicating a clear earnings recovery. However, part of this growth reflects the low base created by the PTS-related goodwill impairment, Trividia’s patent settlement expenses with Roche, and provisions for overseas product-quality matters in 2025. The sustainability of the improvement still requires validation through subsequent results.

The company’s core business remains blood glucose monitoring systems. In 2025, this business generated revenue of RMB 3.470 billion, accounting for 74.47% of product revenue; domestic revenue accounted for 55.96%, overseas revenue for 44.04%, and distribution revenue for 77.65%. In the first half of 2026, blood glucose monitoring system revenue increased 13.37% year on year, while domestic revenue rose 19.76%; overseas revenue increased only 2.32%, indicating strong domestic growth momentum but an uneven recovery in overseas operations.

The main growth drivers are CGM, POCT and multi-parameter chronic disease management products. In September 2026, the company obtained a Class III medical device registration certificate for the H6-15s Continuous Glucose Monitoring System. The product can be used for up to 15 days without user calibration. However, registration approval does not equate to large-scale sales, and as of September 2026, the second-generation CGM had not yet been formally submitted to the US FDA for registration.

Earnings quality and short-term trading conditions remain areas to monitor. Gross margin declined from approximately 54.88% in 2024 to approximately 48.74% in 2025, while net profit attributable to shareholders fell to approximately RMB 93 million. Gross margin recovered to approximately 53.2% in the first half of 2026, but net cash flow from operating activities declined 13.12% year on year. The share price was RMB 15.17 as of September 11, 2026, below its short-term moving averages and near the lower Bollinger Band. MACD remained weak, and recent net outflows of main funds indicate that the market has not yet established a clear trend-recovery signal.

2. Company Overview

2.1 Basic Information

2.2 Principal Businesses and Product Portfolio

• Home healthcare products: fingertip blood glucose monitoring systems, CGM, uric acid monitoring systems, dual-function blood glucose/uric acid meters, blood pressure monitors and multifunction testing products; also includes glycated hemoglobin, blood lipid and blood glucose monitoring products operated through PTS and Trividia
• Professional products for tertiary hospitals: in-hospital continuous glucose monitoring products, medical blood glucose monitoring products, dual-function blood glucose/uric acid and blood glucose/blood ketone testing products, diabetes management platforms, iPOCT point-of-care testing systems and AGEscan analyzers
• Professional products for primary healthcare: iPOCT products including iCARE, PCH and PABA; glycated hemoglobin and urine microalbumin testing systems; and multi-parameter testing solutions for township health centers, community hospitals and clinics
• Diabetes healthcare services: through businesses including Sinocare Health diabetes clinics, the company provides assessment, treatment, follow-up, health education and full-course management services for diabetes, obesity, hyperuricemia and other metabolic diseases
• 2025 product revenue mix: blood glucose monitoring systems of RMB 3.470 billion, accounting for 74.47%; diabetes nutrition and care products and other ancillary products of RMB 297 million, accounting for 6.38%; glycated hemoglobin testing systems of RMB 211 million, accounting for 4.53%; blood lipid testing systems of RMB 197 million, accounting for 4.23%; iPOCT monitoring systems of RMB 168 million, accounting for 3.61%; blood pressure monitors of RMB 168 million, accounting for 3.61%; operating products and other items of approximately RMB 348 million
• 2025 geographical mix: domestic revenue of RMB 26.074 billion, accounting for 55.96%; overseas revenue of RMB 20.519 billion, accounting for 44.04%; overseas revenue increased 10.02% year on year, and the company stated that its business covered 187 countries and regions worldwide
• 2025 sales model: distribution revenue of RMB 36.180 billion, accounting for 77.65%; direct-sales revenue of RMB 10.413 billion, accounting for 22.35%; direct-sales revenue increased 14.56% year on year, while distribution revenue increased 2.37%

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

Sinocare operates in the midstream-to-downstream segment of the diabetes testing value chain. It procures electronic components, biosensor materials, testing reagents, chips, structural parts and packaging materials; conducts R&D, production and registration certification for blood glucose meters, test strips, CGM sensors, glycated hemoglobin products and iPOCT equipment; and reaches consumers and professional customers through distributors, pharmacies, e-commerce platforms, hospitals, primary healthcare institutions and overseas channels.

• Major inputs include electronic components, chips, circuit boards, display and communications components required for blood glucose meters and blood pressure monitors; instrument casings and structural parts; packaging materials; and materials related to blood glucose, uric acid, blood lipid test strips and other testing reagents.
• Biosensor-related inputs include enzymes, reaction membranes, electrodes and conductive materials; CGM also involves sensors, implantable or adhesive components, transmitters and communications components.
• The company’s annual reports primarily classify costs as raw materials, wages and benefits, manufacturing expenses and subcontracting fees. They do not fully disclose specific procurement amounts for electronic components, enzymes, electrodes or sensor membranes. The above categories are value-chain classifications based on the product structure and do not represent officially disclosed procurement proportions.
• In 2025, the cost of the blood glucose monitoring systems business was RMB 1.672 billion, including raw materials of RMB 1.058 billion, accounting for 63.27%; wages and benefits of RMB 260 million, accounting for 15.56%; manufacturing expenses of RMB 299 million, accounting for 17.90%; and subcontracting fees of RMB 55 million, accounting for 3.27%.
• Raw materials accounted for 70.31% of blood glucose monitoring system costs in 2024, declining to 63.27% in 2025. Manufacturing expenses increased from 8.78% to 17.90%; the annual report stated that part of the increase was affected by the cross-licensing arrangement between US subsidiary Trividia and Roche.
• Procurement from the five largest suppliers in 2025 amounted to RMB 247 million, accounting for 13.10% of total annual procurement, with no related-party procurement. This indicates no significant overall dependence on a small number of suppliers, although the annual report does not disclose the individual concentration of suppliers for key materials such as chips, biological enzymes and sensor materials.
• The company’s bargaining power for ordinary electronic components, packaging and general structural parts may primarily derive from scale procurement and a multi-supplier system. For high-performance sensor materials, specialized chips, specific reagents and overseas compliant suppliers, substitution and bargaining capabilities have not been sufficiently disclosed; therefore, it cannot be concluded that the company has strong bargaining power across all upstream links.
• Downstream customers include household consumers, pharmacies and retail outlets, e-commerce platforms, hospitals and their clinical laboratories and endocrinology departments, primary health centers and community hospitals, clinics, and overseas medical device distributors and retail channels.
• Distribution revenue accounted for 77.65% in 2025, compared with 22.35% for direct sales. The company remains substantially dependent on distributors, pharmacies and regional channel networks. Direct-sales revenue grew faster than distribution revenue, indicating that hospitals, online platforms and professional markets have gained importance.
• Sales to the five largest customers in 2025 amounted to RMB 959 million, accounting for 20.59% of total annual sales; the largest customer accounted for 7.11%, and none of the five largest customers was a related party. This is a single-year disclosure for 2025. The trend in customer concentration has not been fully cross-checked and should be confirmed against subsequent annual reports.
• The main competitive factors in the home retail market are brand, channels, product pricing and test-strip repurchase rates. The company can create a degree of user stickiness through low-priced meters, recurring consumables purchases and brand channels, but faces price competition from Yuwell, Cofoe and overseas brands.
• Hospital customers place greater emphasis on market access, registration certificates, clinical recognition, tendering, product performance, accuracy and after-sales service. Primary healthcare markets place greater emphasis on price, ease of operation, testing speed, equipment maintenance and integrated solution capabilities.
• Overseas markets require registration, quality systems, patents, channels and compliance costs in different countries. Overseas distributors and large medical device customers generally have stronger bargaining power than ordinary retail consumers.
• The company has stated that its share of China’s retail blood glucose meter market has remained above 50% for an extended period. It covers more than 400,000 pharmacies, 4,000 tertiary hospitals and more than 10,000 community and township hospitals. These market-share and coverage figures are self-disclosed by the company and have not been fully cross-checked against independent third-party databases.
• The company competes in BGM, CGM and multi-parameter POCT markets. BGM products are technologically mature, with significant meter price competition and recurring demand for test strips. CGM places greater emphasis on sensor life, accuracy, algorithms, wearing comfort, registration certification and global compliance capabilities.
• As of the end of 2025, the book balance of accounts receivable was approximately RMB 620 million. Based on 2025 revenue of approximately RMB 4.659 billion used in the memorandum, accounts receivable were equivalent to approximately 13.31% of annual revenue. Period-end inventory had a book value of approximately RMB 760 million, equivalent to approximately 16.32% of annual revenue. Based roughly on the average accounts receivable balance at the end of 2024 and 2025 and 2025 revenue, accounts receivable turnover was approximately 45 days. This is an estimate based on year-end data rather than a standard turnover period directly disclosed in the annual report. Accounts receivable increased significantly in 2025, mainly in connection with growth in CGM and online-channel sales revenue. Inventory grew rapidly, with period-end inventory units increasing 26.80% year on year, faster than the 5.53% increase in sales volume. Inventory digestion for new product launches, overseas channel stocking and CGM should be monitored.
• Procurement from the five largest suppliers accounted for 13.10% and sales to the five largest customers accounted for 20.59%, with the largest customer accounting for 7.11%. These data are single-year disclosures for 2025; certain customer and supplier names are anonymized, and multi-year trends have not been fully verified. Accounts receivable are not high relative to revenue, but inventory is growing faster than sales, so value-chain bargaining relationships should be assessed together with subsequent collections, inventory and channel data.

Sinocare is not a resource-based upstream company. It is a midstream medical device platform company, positioned toward the downstream end of the midstream, with barriers based on brand, sensor technology, scale manufacturing, registration certification and channel networks. Its traditional BGM business has a solid profitability base supported by brand, channels and recurring test-strip purchases, but the company remains affected by limited substitutability for certain upstream core materials and specialized components, bargaining pressure from downstream distributors and overseas customers, and overseas compliance costs. Future profit improvement will depend mainly on CGM volume growth, product-mix upgrades, recovery in overseas profitability, manufacturing cost control, and the scaling of multi-parameter POCT and digital chronic disease management businesses.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

First-half 2026 data are as of June 30, 2026, and the disclosure date was August 4, 2026. Non-recurring-adjusted net profit attributable to shareholders in the first half of 2026 was RMB 210.30 million, up 32.87% year on year; net cash flow from operating activities was RMB 237.49 million, down 13.12% year on year; basic EPS was RMB 0.4096, and weighted average return on equity was 7.02%. Amounts are denominated in RMB.

Revenue and profit both increased in the first half of 2026. Growth in non-recurring-adjusted net profit attributable to shareholders exceeded revenue growth, indicating an improvement in profitability. First-half gross margin was approximately 53.2%, up approximately 1.3 percentage points year on year; the selling expense ratio was approximately 27.8%, up approximately 0.8 percentage points; the administrative expense ratio was approximately 8.7%, down approximately 0.9 percentage points; and the R&D expense ratio was approximately 4.9%, down approximately 1.5 percentage points. By business, blood glucose monitoring system revenue was approximately RMB 1.881 billion, up 13.37% year on year; point-of-care testing products generated approximately RMB 431 million, up 10.56%; domestic revenue was approximately RMB 1.517 billion, up 19.76%; and overseas revenue was approximately RMB 1.020 billion, up 2.32%. The decline in 2025 net profit attributable to shareholders was mainly affected by one-off factors including PTS-related goodwill impairment, Trividia’s patent settlement expenses with Roche, and provisions related to overseas product-quality and instruction-manual matters. Accordingly, 2026 profit growth benefits from a low-base effect.

3.2 Earnings Forecasts

As of September 10, 2026, the Tonghuashun earnings forecast page showed that 16 institutions had forecast 2026 results in the preceding six months, while 15 institutions had forecast 2028 results. These forecasts were extracted from institutional research reports or aggregated by the platform and are not formal company guidance. Forecasts differ among institutions, with particularly high uncertainty surrounding 2028 revenue and net profit forecasts.

3.3 Valuation and Institutional Ratings

At the September 11, 2026 close, the share price was RMB 15.17, the 52-week range was approximately RMB 13.37–21.10, and market capitalization was approximately RMB 8.45 billion. Yahoo Finance showed TTM EPS of approximately RMB 0.25, TTM P/E of approximately 60.5x and market capitalization of approximately RMB 8.425 billion. Based on approximately 557 million shares outstanding, static market capitalization was approximately RMB 8.45 billion and P/E based on TTM EPS was approximately 60.7x. Valuation figures differ across platforms: as of September 9, 2026, Lixinger showed P/E of approximately 64.94x, P/B of approximately 2.93x and a historical P/E-TTM percentile of approximately 82%; as of August 21, 2026, Tonghuashun showed P/E-TTM of approximately 67.03x and a historical percentile of approximately 70.2%. Based on institutional consensus net profit forecasts, forward P/E for 2026–2028 is approximately 21.4x, 17.3x and 14.5x, respectively. Based on publicly disclosed target prices, the target-price range is approximately RMB 21.00–23.30, with a median of approximately RMB 23.00. Relative to the RMB 15.17 closing price, implied upside is approximately 38%–54%, although target prices do not represent an assurance that those levels will be reached. Overall, the company’s current TTM valuation is in the upper-middle range of its historical band. The speed at which forward valuation can decline depends on sustained CGM volume growth, improved profitability at overseas subsidiaries and the non-recurrence of one-off expenses. Key uncertainties include intensifying CGM competition, weaker-than-expected overseas registration and sales, an unsustained recovery at Trividia and PTS, a persistently high selling expense ratio, and the recurrence of overseas litigation or product-quality issues.

4. Recent News and Announcements

4.1 Obtained Class III Medical Device Registration Certificate for the H6-15s Continuous Glucose Monitoring System

On September 8, 2026, the company disclosed the Announcement on Obtaining a Medical Device Registration Certificate and Changes to Medical Device Registration. The company newly obtained a Class III medical device registration certificate for a product named the Continuous Glucose Monitoring System, model H6-15s, registration certificate No. 国械注准20263071874, valid from September 4, 2026 to September 3, 2031. The product is suitable for diabetes patients aged 2 and above, can continuously or periodically monitor glucose levels in interstitial fluid, requires no user calibration, can be used for up to 15 days, and can be used in medical institutions and home settings. In addition, another Class III continuous glucose monitoring system completed a registration change; 8 other Class II medical devices completed renewal registration, and 3 Class II medical devices completed registration changes. These registration matters do not equate to large-scale sales revenue, and the pace of commercialization and impact on future results remain uncertain. Source: https://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?id=12588418&stockid=300298&utm_source=openai

4.2 Cumulative Share Repurchases of Approximately RMB 149 Million, Near the Lower End of the Repurchase Range

On September 2, 2026, the company disclosed the Announcement on the Progress of Share Repurchases. The repurchase plan was approved by the board on March 27, 2026 and by the extraordinary shareholders’ meeting on April 13, 2026. The company plans to repurchase shares within 12 months of approval by the shareholders’ meeting for cancellation and reduction of registered capital. Total repurchase funds will be no less than RMB 150 million and no more than RMB 300 million, with a maximum repurchase price of RMB 25 per share. As of August 31, 2026, the company had repurchased 9,176,644 shares, representing 1.65% of current total shares; the highest transaction price was RMB 17.10 per share, the lowest was RMB 14.19 per share, and total transaction value was RMB 149,024,338.74, excluding transaction fees. Based on the RMB 150 million minimum, approximately 99.35% had been completed; based on the RMB 300 million maximum, approximately 49.67% had been completed. The company will continue implementing the repurchase plan based on market conditions and capital allocation. Source: https://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?id=12579014&stockid=300298&utm_source=openai

4.3 Second-Generation CGM Has Not Yet Been Formally Submitted to the US FDA

According to the company’s September 2, 2026 investor-relations activity record, preparations for US registration of the second-generation CGM product were still in progress as of September 2, 2026, and the product had not yet been formally submitted to the US FDA. The company is continuing to improve preclinical studies, algorithm validation and related trial design based on FDA registration feedback and review requirements for the first-generation CGM product. It must also take into account the impact of the company’s patent litigation with Abbott in Europe. The company has not disclosed a specific formal FDA submission date or commercialization timetable, so the timing of commercialization in the US market remains uncertain. Source: https://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?id=12581038&stockid=300298&utm_source=openai

4.4 2026 Interim Report: Revenue and Profit Continued to Grow

The company disclosed its 2026 interim report on August 4, 2026. In the first half of 2026, revenue was RMB 2.53704 billion, up 12.08% year on year; net profit attributable to shareholders of the listed company was RMB 221.34 million, up 22.52%; non-recurring-adjusted net profit attributable to shareholders was RMB 210.30 million, up 32.87%; and net cash flow from operating activities was RMB 237.49 million, down 13.12%. By business, blood glucose monitoring system revenue was approximately RMB 1.881 billion, point-of-care testing product revenue approximately RMB 431 million, and ancillary products and other revenue approximately RMB 225 million. By region, domestic revenue was approximately RMB 1.517 billion, up approximately 19.76%, while overseas revenue was approximately RMB 1.020 billion, up approximately 2.32%. As of June 30, 2026, the dedicated repurchase securities account held 23,602,905 company shares, representing 4.24% of total shares at that time. The company did not declare an interim cash dividend, bonus issue or capitalization of capital reserves for 2026. Source: https://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?id=12475295&stockid=300298&utm_source=openai

4.5 Company Decided Not to Lower the Conversion Price of the “Sinocare Convertible Bond”

On August 4, 2026, the company disclosed the Announcement on Not Lowering the Conversion Price of the Sinocare Convertible Bond. The company’s shares triggered the downward-adjustment clause for the conversion price of the “Sinocare Convertible Bond” during the period from July 14 to August 3, 2026. The applicable conversion price at that time was RMB 34.52 per share, and the price corresponding to the trigger standard was RMB 27.62 per share. On August 3, 2026, the board decided not to lower the conversion price on this occasion and specified that if the downward-adjustment conditions were triggered again from August 4 to December 20, 2026, the company would also not propose a downward-adjustment plan. Source: https://bond.stockstar.com/SN2026080300033299.shtml?utm_source=openai

4.6 Participated in the Online Collective Investor Reception Day for Listed Companies in Hunan

On August 27, 2026, the company disclosed an announcement stating that it planned to participate in the online collective investor reception day and interim-results briefing jointly organized by the Hunan Securities Regulatory Bureau, the Hunan Association of Listed Companies and Quanjing Network. The event was held on September 2, 2026. The company planned to communicate with investors on 2025 and first-half 2026 results, corporate governance, development strategy, operating conditions, financing plans, equity incentives and sustainable development. The related investor-relations activity record was disclosed on September 2, 2026, and covered the repurchase progress and US registration progress of the second-generation CGM. Source: https://vip.stock.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?id=12558029&stockid=300298&utm_source=openai

4.7 No 2026 Third-Quarter Earnings Forecast Found as of September 12, 2026

As of September 12, 2026, the research memorandum stated that no formal earnings forecast, earnings preannouncement or earnings warning for the first three quarters of 2026 had been found. The latest confirmed formal results are those in the 2026 interim report, covering January 1 to June 30, 2026. First-half earnings growth should not be directly extrapolated into a full-year or first-three-quarter earnings forecast.

4.8 Shareholder Purchases, Sales and Pledge Information: No New September Announcements Found

As of September 12, 2026, no newly disclosed September announcement regarding purchases, sales or share pledges by the controlling shareholder had been found. Third-party F10 data as of September 4, 2026 showed that controlling shareholder Li Shaobo had pledged approximately 76.52 million shares, representing approximately 13.74% of the company’s total shares and approximately 53.63% of his holdings. This search did not find a separate latest September company announcement corresponding to the data, which should therefore be used only as supplementary information. The company’s 2026 interim report disclosed that, as of June 30, 2026, the dedicated repurchase securities account held 23,602,905 company shares, representing 4.24% of period-end total shares. Pledge and ownership percentages may change due to convertible-bond conversion, cancellation of repurchased shares and changes in share capital. The company’s subsequent formal announcements and China Securities Depository and Clearing Corporation data should prevail. Source: https://basic.10jqka.com.cn/300298/?utm_source=openai

4.9 No Recent Significant Regulatory Penalties or M&A Transactions Found

As of September 12, 2026, no significant announcement issued by the company in September 2026 concerning information-disclosure violations, regulatory penalties, inquiry letters or regulatory measures had been found. The company’s 2026 interim report disclosed that no significant related-party transactions involving asset or equity acquisitions or disposals occurred during the reporting period. As of September 12, 2026, no newly disclosed major M&A transaction, asset acquisition or equity disposal from August to September 2026 had been found. Recent policy-sensitive issues directly related to the company primarily include medical device registration approvals, CGM commercialization, and coverage under medical insurance and healthcare payment systems in different countries. The company has noted that coverage policies may differ by country, region and type of medical insurance.

5. Share Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Sinocare closed at RMB 15.17, remaining below MA5, MA10 and MA20. As of September 10, MACD still showed a weak structure with DIF below DEA and the histogram below the zero line. RSI6 was near or may have entered the traditional oversold zone, while the share price was near or below the lower Bollinger Band. A short-term technical rebound was possible, but there was no confirmation of a trend reversal. Main-fund net outflow over the latest 10 trading days was approximately RMB 17.11 million, while turnover value and turnover rate were generally low. The stock was closer to an oversold observation phase following a weak decline. RMB 15.10 was a direct near-term level to monitor. A low-volume stabilization could produce a technical rebound; a high-volume breakdown would require monitoring of lower support levels.

5.3 Short-Term Outlook (Next Week; Scenario Analysis for Reference Only)

⚠️ Risk Warning: The following content is a subjective scenario analysis based on closing data, historical prices and technical indicators as of September 11, 2026. It does not constitute investment advice or a definitive forecast of future share prices.

① Key Technical Levels

② Scenarios for the Coming Week (Subjective Weighting, Not Statistical Probabilities)

• Weak range-bound consolidation (relatively higher heuristic subjective weighting, approximately 50%–60%; not a statistical probability): price range of approximately RMB 15.10–15.85. Trigger conditions include no high-volume break below RMB 15.10, turnover value remaining within the recent normal range, and the share price fluctuating between RMB 15.30 and RMB 15.60. Monitor whether RSI6 recovers after reaching oversold levels, whether main-fund net outflows narrow, and whether the share price can move back above approximately RMB 15.50.
• Moderately weak decline (medium heuristic subjective weighting; not a statistical probability): price range of approximately RMB 14.70–15.20. Trigger conditions include a high-volume break below approximately RMB 15.10, daily turnover value clearly exceeding the recent average, and simultaneous weakness in medical devices or the pharmaceutical and biotechnology sector. RMB 14.70–15.00 is only the next observation range and is not a definitive target price.
• Oversold rebound (low-to-medium heuristic subjective weighting; not a statistical probability): price range of approximately RMB 15.80–16.20. Trigger conditions include the share price first holding the RMB 15.10–15.30 area, subsequently reclaiming RMB 15.50 and breaking through resistance around RMB 15.80 on turnover value clearly above the recent average. If the price breaks through RMB 16.00–16.10 on higher volume, the short-term rebound structure may strengthen further; before then, it should be regarded as technical recovery rather than confirmed trend reversal.

③ Funding and Liquidity Background

The turnover rate on the latest trading day was approximately 0.55%–0.58%, turnover value over the latest 5 trading days was approximately RMB 40–63 million, and turnover value over the latest 20 trading days was approximately RMB 39 million to RMB 141 million. The 49.81% holding by the ten largest tradable shareholders was as of March 31, 2026, while the 11.03% institutional holding figure was as of June 30, 2026; both have quarterly lags, and the actual shareholder structure may have changed. The relatively high concentration among the ten largest tradable shareholders indicates that tradable shares are relatively concentrated, but adjustments by major shareholders, important shareholders or institutions could affect prices in phases. Public data are insufficient to determine whether institutions have recently been buying or selling.

Using the recent 5-day average turnover value of approximately RMB 49.50 million as a reference, if daily turnover value consistently expands to approximately RMB 70 million or more and the share price retakes RMB 15.80, this could be considered an observable signal of improved short-term fund participation. If volume expands while the share price continues to break below RMB 15.10, it would more likely represent the release of selling pressure rather than positive fund participation.

④ Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Observe whether effective buying support emerges around RMB 15.10–15.20, with particular attention to whether this is accompanied by abnormal volume. This is an observation framework, not a trading instruction.
• Observe whether RMB 15.30–15.50 can be reclaimed and converted into short-term support. This is an observation framework, not a trading instruction.
• Observe whether the RMB 15.80–16.10 resistance zone can be broken when turnover value expands to approximately RMB 70 million or more. This is an observation framework, not a trading instruction.
• Observe whether consecutive main-fund net outflows improve, and avoid interpreting a technical rebound caused by RSI oversold conditions as a trend reversal. This is an observation framework, not a trading instruction.

The above scenario analysis is based on closing data as of September 11, 2026 and calculations of historical prices and technical indicators. Short-term share prices may also be affected by news, fund flows, broader market conditions and other factors. Technical indicators have inherent lag and limitations. This does not guarantee future actual performance or constitute a buy or sell recommendation. Investors should make independent judgments based on the latest market information and bear investment risks themselves.

6. Industry Landscape and Competitor Analysis

6.1 Industry Overview

POCT is portable, rapid and easy to operate, with relatively low dependence on large laboratory equipment. Its applications are expanding from professional settings such as hospital emergency departments and ICUs to primary healthcare, community clinics and home testing. The industry is transitioning from the simple sale of testing equipment toward integrated “equipment + consumables + data + services” solutions. BGM technology is relatively mature, with notable meter price competition but recurring demand for test strips. CGM has higher technology barriers, with competition focused on sensor design, stability, accuracy, algorithms, wearing comfort, registration certification and global compliance capabilities.

6.2 Competitive Landscape

• Sinocare’s products cover blood glucose, blood lipids, uric acid, glycated hemoglobin, urine microalbumin and blood ketones, benefiting from trends including primary healthcare equipment deployment, chronic disease management and hierarchical medical care.
• Key competitive barriers in BGM include brand, accuracy, channels and stable test-strip supply. Domestic companies have cost and channel advantages in the out-of-hospital retail market, while overseas brands remain influential in hospitals, professional markets and high-end segments.
• CGM is an important incremental growth direction for blood glucose monitoring. The global market is dominated by Abbott, Dexcom and Medtronic, which have strong advantages. China is in a phase of rising penetration and domestic substitution, with competition focused on price, sensor life, accuracy, medical insurance coverage, hospital education and online repurchase.
• Sinocare has stated that its “Sinocare iCan” CGM products have obtained registration approvals in more than 50 countries and regions, including China, Indonesia, the EU under MDR, the UK and Thailand, and have been sold in more than 90 countries. These figures reflect registration and sales coverage and do not equate to actual sales volume or market share.
• The company’s strengths include its traditional BGM user base, pharmacy and e-commerce channels, blood glucose test-strip repurchase network and overseas sales system. Its CGM business still requires continued R&D, clinical promotion and market education investment, and faces competition from Abbott, Dexcom and new domestic entrants.
• The company has stated that its share of China’s retail blood glucose meter market has remained above 50% for an extended period. This figure has not been fully cross-checked against an independent third-party market-share database and should be regarded as a self-disclosed figure.

6.3 Key Competitors

Compared with Yuwell Medical, Sinocare is more focused on blood glucose monitoring and diabetes management and has a stronger foundation in recurring test-strip consumables, specialized products and overseas blood glucose operations. Compared with MicroTech Medical, it has greater scale in BGM, broader home channels, multi-parameter POCT and a more extensive global sales system, but lacks equivalent differentiation in CGM and insulin pump integration. Compared with Abbott and Dexcom, Sinocare has domestic cost and Chinese retail channel advantages, but remains behind in global CGM branding, clinical systems, accumulated technology and global healthcare channel capabilities.

7. Risk Factors

• Risk that CGM commercialization falls short of expectations: Although H6-15s has obtained a Class III medical device registration certificate, registration approval does not equate to large-scale sales. If market promotion, penetration into hospitals and households, or user repurchase falls short of expectations, CGM investment may not convert into revenue and profit.
• Risk of delays in US registration: As of September 2, 2026, the company had not formally submitted its second-generation CGM to the US FDA. It was still improving preclinical studies, algorithm validation and trial design, while also considering the impact of patent litigation with Abbott in Europe. The timing of commercialization in the US market remains uncertain.
• Overseas profitability and compliance risks: Higher overseas business costs in 2025, costs related to the Trividia–Roche patent licensing arrangement, and costs related to overseas product-quality and instruction-manual matters jointly compressed earnings. A recurrence of overseas registration, quality, patent or litigation issues could continue to affect gross margin and net profit.
• Inventory digestion and working-capital risks: Period-end inventory units increased 26.80% year on year in 2025, faster than the 5.53% increase in sales volume, and inventory had a book value of approximately RMB 760 million. If CGM new-product launches, overseas channel stocking or product-mix changes fall short of expectations, inventory turnover could slow and impairment pressure could arise.
• Channel dependence and bargaining risk: Distribution revenue accounted for 77.65% in 2025, leaving the company substantially dependent on distributors, pharmacies and regional channels. Overseas distributors and large medical device customers have strong bargaining power. Channel destocking, price competition or changes in distribution policies could weigh on revenue growth and product gross margin.
• Risk that earnings recovery falls short of expectations: First-half 2026 profit growth was partly supported by the low base created by 2025 goodwill impairment, patent settlement and quality-related items. If the selling expense ratio remains high, R&D and overseas-market investment increases, or one-off expenses do not fully abate, the earnings recovery implied by institutional forecasts may not be achieved.
• Supply-chain and cost-volatility risks: Raw materials accounted for 63.27% of blood glucose monitoring system costs in 2025, while CGM also involves sensors, communications components and specialized materials. The company has not fully disclosed supplier concentration for key chips, biological enzymes, electrodes and sensor materials, and the substitutability and bargaining power of certain core materials remain uncertain.
• Financial-data definition and valuation risks: The company overview contains inconsistencies in the billion versus hundred-million-basis reporting of 2025 revenue and medical device revenue, which should be confirmed against the annual report. In addition, as of September 2026, the share price implied a TTM P/E of approximately 60–65x. If earnings delivery falls short of expectations, the relatively high valuation could amplify share-price volatility.

8. Conclusion and Outlook

The company has established a blood glucose monitoring and chronic disease POCT platform covering home, hospital, primary healthcare and overseas markets. Its traditional BGM business provides a foundation through brand, channels and recurring test-strip purchases, while CGM registration expansion, domestic growth and digital chronic disease management provide medium- to long-term incremental growth. If CGM commercialization proceeds smoothly, overseas subsidiary profitability improves and manufacturing costs are controlled, there remains room for recovery in margins and earnings scale.

Representative institutional forecasts for 2026–2028 net profit attributable to shareholders are broadly in the range of RMB 356 million to RMB 680 million. However, these forecasts are not formal company guidance, and 2026 profit growth includes a low-base effect. The company’s current TTM P/E of approximately 60–65x is in the upper-middle range of its historical band. Whether forward valuation declines will depend on earnings delivery rather than revenue growth alone.

Future monitoring should focus on actual sales and repurchase of new CGM products, commercialization progress following H6-15s registration, the US registration filing for the second-generation CGM, earnings recovery at Trividia and PTS, any recurrence of overseas quality or patent issues, and changes in inventory, accounts receivable and operating cash flow.

Data Sources

• Stock Code: 300298 Stock Name: Sinocare Listing Venue: Shenzhen Stock Exchange
• Sinocare (300298)_Company Announcements_Sinocare: 2025 Annual Report Summary_Sina Finance_Sina.com
• Sinocare (300298)_Company Announcements_Sinocare: 2025 Annual Report_Sina Finance_Sina.com
• Global Leading Expert in Digital Diabetes Management - Sinocare
• Sinocare (300298)_Company Announcements_Sinocare: Related Bond 2026 Tracking Rating Report_Sina Finance_Sina.com
• Sinocare (300298)_Company Announcements_Sinocare: 2024 Annual Report_Sina Finance_Sina.com
• Sinocare (300298)_Company Announcements_Sinocare: 2023 Annual Report_Sina Finance_Sina.com
• Analysis of the Development Status and Investment Outlook of China’s Blood Glucose Monitoring Industry (2025–2032)_Guan Yan Report
• Major Shift in the Blood Glucose Monitoring Device Market: Domestic Brands’ Full-Scale Offensive_36Kr
• 2026–2032 China Blood Glucose Meter Industry Competitive Strategy Research and Future Outlook Report_Zhiyan Consulting
• Xiao Jingji - Sinocare
• Sinocare (300298)_Company Announcements_Sinocare: 2026 Interim Report Summary_Sina Finance_Sina.com
• Sinocare (300298): Rising Volume and Profit, CGM Growth and Loss Reduction; Recovery in Core Business and Overseas Synergies_Sina Finance_Sina.com
• Sinocare (300298) Earnings Forecast_F10_Tonghuashun Financial Services
• Strong Domestic Business Growth and Steady Innovation Transformation – Macroeconomic Research Report_Data Center_Eastmoney.com
• Sinocare (300298) 2025 Annual Report and 2026 Q1 Review: Results Stabilizing and Recovering; CGM Global Expansion Drives Growth_Jiufang Intelligent Investment
• Sinocare (300298): Strong Domestic Growth and Continued Profitability Recovery
• Kaiyuan Securities: Buy Rating for Sinocare_Brokerage Research Report_Data Analysis_Stocks_Stockstar
• Sinocare (300298) Stock Forecast and Analyst Ratings - Futu
• Sinocare (300298) Historical Stock Data: Historical Quotes, Prices and Charts_Investing.com
• Sinocare (300298) P/E | Valuation | Fundamentals - Lixinger
• Yesterday’s Valuation: Sinocare P/E (TTM) 67.03x, at the 70.2% Percentile (August 21, 2026)
• Sinocare (300298)_Company Announcements_Sinocare: 2022 Interim Report Summary_Sina Finance_Sina.com
• Sinocare (300298)_Company Announcements_Sinocare: Announcement on Obtaining a Medical Device Registration Certificate and Changes to Medical Device Registration_Sina Finance_Sina.com
• Sinocare (300298)_Company Announcements_Sinocare: Announcement on the Progress of Share Repurchases_Sina Finance_Sina.com
• Sinocare (300298)_Company Announcements_Sinocare: September 2, 2026 Investor Relations Activity Record_Sina Finance_Sina.com
• Sinocare (300298)_Company Announcements_Sinocare: 2026 Interim Report_Sina Finance_Sina.com
• Sinocare: Announcement on Not Lowering the Conversion Price of the Sinocare Convertible Bond_Bond Channel_Stockstar
• Sinocare (300298)_Company Announcements_Sinocare: Announcement on Participating in the 2026 Hunan Listed Companies Online Collective Investor Reception Day and Interim Results Briefing_Sina Finance_Sina.com
• Sinocare (300298) Latest Developments_F10_Tonghuashun Financial Services
• Sinocare (300298)_Stock Quotes and Market Overview_China Finance Online
• Sinocare (300298.SZ) Stock Quotes_Historical Data_Main Funds - Dabolang Data
• Sinocare (300298.SZ) Stock Quotes_Historical Data_Main Funds - Dabolang Data

This report was automatically retrieved, compiled and generated by AI based on publicly available information. Information is current as of the September 11, 2026 close; moving averages, MACD, RSI and Bollinger Band platform indicators are primarily as of September 10, 2026, while certain September 11 indicators are simplified recalculations based on publicly available closing prices or qualitative judgments. Timing differences may exist. Specific data should be confirmed against the company’s formal announcements and authoritative data terminals. This report is provided solely for information and research reference and does not constitute investment advice. Investors should make independent judgments and bear investment risks themselves.