---
title: "Artificial joints welcome a recovery, going overseas is the second half of the industry"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/275983176.md"
description: "In 2025, the artificial joint industry will usher in a comprehensive improvement, with major manufacturers such as Chunli Medical and Double Medical experiencing significant growth in net profits and a notable rise in stock prices. The centralized procurement policy is driving market penetration, with domestic brands gradually increasing their influence and intensifying market competition. The continuation of centralized procurement in 2024 shows stable prices, an increase in participating manufacturers, a rise in market share of domestic products, and a significant growth in the usage of joint products"
datetime: "2026-02-14T15:02:23.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/275983176.md)
  - [en](https://longbridge.com/en/news/275983176.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/275983176.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/275983176.md) | [繁體中文](https://longbridge.com/zh-HK/news/275983176.md)


# Artificial joints welcome a recovery, going overseas is the second half of the industry

Author / Braised Pork Under the Starry Sky

Editor / Starry Sky of Spinach

Typesetting / Black Plum Under the Starry Sky

The year 2025 is expected to be a fully positive year for the **artificial joint** industry, with annual performance forecasts disclosed by various companies showing significant growth. Companies such as Chunli Medical (688236), Double Medical (002901), and Sanyou Medical (688085) have all reported net profit increases exceeding 60%, with some achieving three to five times growth.

The impressive performance is also reflected in stock prices, with major orthopedic companies seeing an average stock price increase of over 20% last year. Chunli Medical, which performed the best, achieved a growth of 79.31% for the entire year.

This undoubtedly marks that, after undergoing a comprehensive baptism of centralized procurement in segments such as joints, spine, and sports medicine, orthopedic consumables have passed the "growing pains" period and entered a new stage of development. Specifically for artificial joints, the strategy of **exchanging price for market** has shown some effectiveness, with domestic brands gradually gaining influence and new products continuously emerging.

**1\. Centralized Procurement Opens Market Penetration Space**

Centralized procurement of artificial joint products began relatively early in the orthopedic consumables sector, with the first shot fired in September 2021, serving as a pilot. In the first round of centralized procurement, the average price drop for winning products reached as high as 82%, with the average price of artificial hip joints plummeting from 35,000 to 7,000. It is not an exaggeration to say that orthopedic consumables have been reduced to **bargain prices**. This has profoundly reshaped all aspects of the artificial joint supply chain, leading to deep adjustments in the industry, and the overall market value of the sector has been continuously shrinking.

In 2024, the artificial joint sector conducted follow-up centralized procurement, which saw a certain increase in procurement scale compared to the first round, and the winning prices in the follow-up procurement remained relatively stable, averaging only a 6% decrease, which was within industry expectations. The results of this second centralized procurement undoubtedly indicate that prices have entered a **stable range**, alleviating panic. Consequently, the number of participating manufacturers has increased from 30 in the first centralized procurement in 2021 to 47 in the follow-up procurement.

Different Applicable Parts Classify Types of Orthopedic Joint Consumables in China Source: Qianzhan Industry Research Institute

Moreover, the resulting procurement volume is substantial, with the procurement and usage of products from major multinational companies like Johnson & Johnson gradually declining since the implementation of the winning results. In this context, the **market share** of domestic products has significantly increased Moreover, the usage of joint products has also seen significant growth. For a long time, the number of orthopedic surgeries and the usage of related consumables in China have remained at a low level, undoubtedly constrained by the high prices of consumables. Now that domestic products have gained traction, it has naturally led to a rapid increase in the penetration rate of orthopedic surgeries.

According to industry data, after the centralized procurement of artificial joints, the number of related surgeries has significantly increased, with **2.44 million** joint replacement surgeries performed in 2024, a year-on-year growth of 22%, which has opened up the ceiling of the consumables market.

**II. Impressive Overseas Performance of Domestic Artificial Joints**

As a result, many orthopedic companies are experiencing a turnaround in performance in 2025. The overall revenue of the A-share orthopedic consumables sector grew by 17% year-on-year in the first three quarters of last year, with the net profit attributable to the parent company increasing by as much as **81%** during the same period.

As one of the leading domestic artificial joint manufacturers, Chunli Medical's performance fluctuations in recent years reflect the dynamics of this sector. After the first centralized procurement in 2021, the production and sales volume of joint prostheses immediately increased by 82.08% and 63.06% year-on-year in 2022, but net profit saw a decline year-on-year, plummeting by 55.01% in 2024. In 2025, a turnaround was finally achieved, with revenue reaching 756 million yuan in the first three quarters, and net profit attributable to the parent company increasing by **213.21%** to 192 million yuan.

Another company focusing on joint products, Aikang Medical (01789), saw its revenue decline by 26% in the second half of 2021 due to the impact of centralized procurement, and its net profit attributable to the parent company also dropped significantly after accounting for price discount provisions. After gradually digesting price disturbances from 2024 to 2025, its profitability is **gradually recovering**.

Aikang Medical's net profit attributable to the parent company from 2018 to H1 2025 (in 100 million yuan) Source: iFind, Cinda Securities Research Center

I won't elaborate much on the specific performance of manufacturers, but I want to highlight a very noteworthy point: **international business** has grown to become an important pillar for various artificial joint and orthopedic consumables companies.

Globally, while the orthopedic consumables market in the Asia-Pacific region has the fastest growth rate of around 6%, data shows that in 2024, North America and Europe together accounted for **70%** of the global orthopedic consumables market, remaining the absolute main players. Therefore, in addition to competing with multinational giants for the domestic market, entering overseas markets is also a necessary path for Chinese artificial joint manufacturers to gain global influence.

In the first three quarters of 2025, Chunli Medical's overseas revenue grew by **40%** year-on-year, while Weigao Orthopedics (688161) saw nearly a 20-point increase in overseas revenue in H1 2025. Companies like Sanyou Medical and Aikang Medical are participating in the global market by holding overseas subsidiaries, which undoubtedly allows for deeper access to local channels and stable growth From foreign capital controlling the Chinese market to gradually counterattacking overseas markets, Chinese artificial joint manufacturers have had a tough journey.

The decline in channel costs is also quite evident. **Sales expenses** have historically been a major cost for orthopedic consumables companies and are theoretically an issue that centralized procurement can address. From the performance of various companies last year, some enterprises like Weigao Orthopedics and Chunli Medical have seen a significant decrease in their sales expense ratios.

However, within the entire biopharmaceutical sector, orthopedic consumables still belong to industries with relatively high sales expense ratios. According to announcements from the Medical Insurance Bureau, this is also a field with a high incidence of **commercial bribery** behaviors. Moreover, there are still quite a few manufacturers whose channel costs have not decreased, which may be an urgent issue for related companies to resolve.

**III. The industry is moving towards high-end development**

In addition to overseas markets, new **product development** is also a focus for artificial joint companies.

The bio-type total knee joint prosthesis developed by Chunli Medical was officially approved for market launch in May last year. Aikang Medical's **VITA** femoral stem (used for hip joint reconstruction), as the first domestic necked, three-cone short stem, also held a launch ceremony at the end of the year. Manufacturers like Weigao Orthopedics and Sanhuan Bio have also released new artificial joint products in the past two years.

However, innovation may come with costs. Tianzhihang (688277), focusing on orthopedic surgical robots, expects a revenue increase of 50.97%—67.75% by 2025, reaching 270 million to 300 million yuan, but the **loss amount** has also expanded compared to 2024, reaching 165 million to 198 million yuan.

Overall, **population aging** is one of the main factors determining the incidence of orthopedic diseases. Common related diseases such as fractures, cervical spondylosis, and arthritis see a sharp increase in incidence with age. Moreover, the penetration rate of joint replacement surgeries in China still has significant potential; in 2019, the penetration rate was 0.44%, only about 1/5 of the penetration rate in the United States during the same period. In addition to primary replacement surgeries, factors such as the lifespan of artificial prosthetics and aseptic loosening also contribute to a certain demand for joint revision surgeries.

It can be said that demographic factors are the **fundamental driving force** supporting the development of the domestic artificial joint market.

Aikang Medical new product launch ceremony poster Source: Company website

The most challenging times for artificial joints have passed. After undergoing a thorough **reshuffle**, the industry is moving towards broader markets and deeper technological waters.

Note: This article does not constitute any investment advice. The stock market has risks; investors should proceed with caution. No trade means no harm

### Related Stocks

- [CHUNLI MEDICAL (01858.HK)](https://longbridge.com/en/quote/01858.HK.md)
- [Double Medical (002901.CN)](https://longbridge.com/en/quote/002901.CN.md)
- [Chunli Medical (688236.CN)](https://longbridge.com/en/quote/688236.CN.md)

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