Shandong Weigao Orthopaedic Device Co., Ltd. (Weigao Orthopaedic) has announced a leadership transition. On November 20, the company disclosed that its director and general manager, Mr. Lu Junqiang, submitted his resignation on November 19 due to work adjustments.
Mr. Lu will no longer serve as a director or general manager of the company’s third board of directors. Li Jinqu, the deputy general manager, will temporarily assume the role of general manager until a new appointment is made. Lu will continue working at enterprises controlled by Weigao Orthopaedic’s major shareholders. As of the announcement date, Lu holds a 0.10% stake in the company through Weihai Hongyangrui Information Technology Center (LP).
Lu joined Weigao Group in October 2000, holding roles including regional manager, East China sales manager, and deputy general manager of the medical products division. He joined Weigao Orthopaedic in 2018 as deputy general manager of sales and succeeded Gong Jianbo as general manager in September 2019. According to company filings, Lu received a pre-tax compensation of 1.7015 million yuan in 2024, ranking second among disclosed executive compensations.
Li Jinqu, now acting general manager, previously served as sales director for Weigao Orthopaedic’s spine division in northern and northern China, as well as director of strategy and branding at Weigao Group. He was appointed deputy general manager in October 2023.
**Sales Transformation Drives Growth** The orthopedic market has rebounded after years of adjustment following centralized procurement policies. Weigao Orthopaedic, a leading domestic player, reflects this recovery.
In the first three quarters of 2025, the company reported operating revenue of 1.106 billion yuan (+2.12% YoY) and net profit of 207 million yuan (+26.24% YoY), outpacing revenue growth. Q3 revenue reached 365 million yuan (+9.8% YoY), while net profit fell 8.03% to 65.45 million yuan due to share-based compensation expenses. Excluding this impact, adjusted net profit rose 8.1% to 76.89 million yuan.
By product line: joint sales declined 9% YoY to 273.22 million yuan despite a 15% volume increase; spine minimally invasive sales grew 3% (volume +13%); and tissue repair sales, led by PRP products, surged 24% to 163.69 million yuan (volume +23%).
The company has prioritized three strategies: expanding market share, lean management for cost efficiency, and global expansion. Weigao Orthopaedic is also restructuring its sales model, organizing divisions by medical specialties to enhance team expertise and clinical service capabilities, driving sustained revenue growth.
**Industry Recovery Continues** Post-procurement adjustments, the orthopedic sector is recovering. Guosen Securities notes that segments like orthopedics, coronary intervention, and neurointervention have passed inflection points, while electrophysiology and neurosurgery maintain high growth, accelerating import substitution.
Peer companies also reported growth: - **Dabo Medical**: 1.876 billion yuan revenue (+22.69% YoY), 425 million yuan net profit (+77.03% YoY) in Q1-Q3 2025. - **Chunli Medical**: 756 million yuan revenue (+48.75% YoY), 192 million yuan net profit (+213.21% YoY). - **Sanyou Medical**: 391 million yuan revenue (+17.7% YoY), 61.98 million yuan net profit (+623.2% YoY).
Firms are exploring growth through globalization, diversification, and operational efficiency to navigate industry changes.
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