Changpeng Wan
Key Developments at United Imaging Healthcare
United Imaging Healthcare (688271.SH) faces significant shareholder activity as employee stock platforms prepare to offload shares worth up to 1.783 billion yuan ($178.3 million). This marks the second major sell-off in twelve months, occurring alongside concerning wealth erosion for founder Xue Min (薛敏). Key developments include:
- Five employee stock platforms plan to sell 13.38 million shares (1.62% stake) via block trades or auctions
- Founder Xue Min’s personal wealth has plunged 103.6 billion yuan ($14.5B) since 2023 peak
- The medical imaging giant shows tentative recovery after 2024’s revenue/profit double-decline
- Competitive pressures intensify with net profit margins trailing rival Mindray Medical
- Strategic pivot toward international markets shows early promise in Q1 2025 results
Shareholder Sell-Off Details
On August 1, 2025, United Imaging Healthcare received formal notification from its employee stock ownership platforms about impending share reductions. The consortium—comprising Ningbo Yingju, Ningbo Yingli, Ningbo Yingjian, Ningbo Yingkang, and Shanghai Yingdong—plans to divest up to 13.38 million shares through either block trading or centralized bidding. At the August 1 closing price of 133.31 yuan per share, this could generate approximately 1.783 billion yuan in proceeds.
Rationale and Precedent
The platforms cited “personal capital requirements of participating employees” as the driving factor. This mirrors last year’s transaction when the same entities sold 7.47 million shares for 894 million yuan in July 2024. Notably, all five platforms operate under the executive leadership of Chairman and Co-CEO Zhang Qiang (张强), who oversees equity arrangements originating from pre-IPO incentive programs that benefited 800+ employees between 2013-2020.
The timing raises eyebrows among analysts. United Imaging Healthcare only recently emerged from its first-ever annual revenue contraction since going public. The sell-off announcement comes precisely as the company demonstrates fragile financial recovery—making this shareholder action particularly noteworthy for market observers.
Financial Performance Rollercoaster
2024 proved challenging for United Imaging Healthcare, with the medical equipment manufacturer recording its maiden simultaneous revenue and profit decline since its 2022 STAR Market debut. Financial metrics revealed:
- Annual revenue: 10.3 billion yuan (down 9.73% YoY)
- Net profit attributable to shareholders: 1.262 billion yuan (down 36.08% YoY)
- Accounts receivable surged 35.05% to 4.359 billion yuan
- Gross profit margin: 48.54% (vs Mindray Medical’s 63.11%)
- Net profit margin: 12.06% (vs Mindray’s 36.3%)
Recovery Signals Emerge
Management attributed 2024’s downturn to three primary factors: delayed implementation of domestic medical equipment renewal policies affecting market size; extended market-entry periods for new high-end products; and increased R&D/sales expenditures. However, Q1 2025 brought tentative recovery signs:
- Revenue: 2.478 billion yuan (up 5.42% YoY)
- Net profit: 370 million yuan (up 1.87% YoY)
During recent earnings calls, executives highlighted overseas market strength as a key growth driver, noting their globalization strategy is “yielding results” despite complex domestic conditions. The company expects stable growth throughout 2025 as medical equipment renewal policies activate nationwide.
Founder’s Wealth Erosion
Controlling shareholder Xue Min (薛敏), who holds 24.27% of United Imaging Healthcare, has witnessed dramatic personal wealth contraction. According to New Wealth Magazine’s 500 Richest List:
- 2023 net worth: 35.3 billion yuan
- 2025 net worth: 24.94 billion yuan
- Two-year decline: 10.36 billion yuan (-29.3%)
This wealth trajectory mirrors the company’s stock performance. After peaking at 216.85 yuan per share (pre-split adjusted) in October 2022—valuing the company at over 170 billion yuan—shares have retreated significantly. By August 6, 2025, they traded at 128.55 yuan, reducing market capitalization to 105.9 billion yuan.
Xue Min’s Industry Legacy
The 66-year-old entrepreneur remains a towering figure in China’s medical imaging sector. Trained under renowned MRI experts Professor Wu Qinyi (吴钦义) and Academician Ye Chaohui (叶朝辉), Xue pioneered China’s magnetic resonance research and led development of the country’s first 1.5T superconducting MRI system. His career milestones include:
- 1998: Founded Mindstar (later acquired by Siemens Healthineers)
- 2011: Established United Imaging Healthcare with “three musts” philosophy: complete product coverage, wholly independent R&D, and global-standard technology
- Developed world-first products like Total-Body PET-CT uEXPLORER
- Built vertically integrated innovation system from components to finished devices
In late 2020, Xue transitioned to Group Chairman role, appointing Dr. Zhang Qiang as CEO to steer the company through its 2022 IPO. Despite reduced operational involvement, his strategic vision continues shaping the organization’s direction.
Market Challenges and Strategic Positioning
United Imaging Healthcare operates in an increasingly competitive landscape where domestic policy shifts create both headwinds and opportunities. Key challenges include:
- Prolonged sales cycles for premium products like 5.0T whole-body MRI systems
- Intensifying margin pressure from global competitors
- Growing accounts receivable indicating strained hospital finances
However, the company’s significant R&D investment—6.8% higher in 2024 despite profit declines—positions it favorably for China’s medical equipment upgrade wave. Industry analysts note United Imaging Healthcare’s technology now matches international standards in 85% of product categories, with particular strength in PET-CT and high-field MRI systems.
Global Expansion Progress
International markets provided crucial stability during recent domestic turbulence. The company has:
- Established subsidiaries in US, Japan, and Europe
- Secured regulatory approvals in 38 countries
- Increased overseas revenue contribution to 28% in Q1 2025
This global footprint offers diversification benefits as Chinese hospitals gradually resume capital expenditures following policy implementation delays. Management anticipates international sales could reach 35% of total revenue by 2026.
Investment Outlook and Industry Implications
United Imaging Healthcare’s current valuation reflects both significant challenges and potential catalysts. While employee stock platform sell-offs create near-term supply pressure, fundamental indicators suggest possible inflection points:
- Price-to-sales ratio of 4.3x remains below sector average
- Policy tailwinds from $7.2B medical equipment renewal initiative
- Patent portfolio covering 3,400+ inventions
The company’s trajectory carries broader implications for China’s medtech sector. As domestic champions like United Imaging Healthcare and Mindray Medical expand globally, they’re testing whether Chinese innovation can compete in premium medical equipment categories traditionally dominated by GE, Siemens, and Philips.
For Xue Min, the wealth contraction represents a temporary setback in a career defined by technological breakthroughs. His legacy extends beyond personal net worth to foundational contributions that enabled China’s medical imaging independence—a strategic national priority. As policy support mechanisms activate and new products gain traction, United Imaging Healthcare’s next chapter could validate Xue’s original vision of Chinese technology rivaling global leaders.
Investors should monitor quarterly margin trends and international expansion metrics. The company’s ability to convert technological prowess into sustainable profitability remains the critical variable for Xue Min’s wealth recovery and shareholder returns. Industry observers recommend watching for new product certifications in Western markets and domestic hospital procurement data as key performance indicators through 2025-2026.
