Gaush Meditech (Gaush) reported revenue of RMB1.38 billion for the year ended 31 December 2025, a 3.4% decline year on year, attributed mainly to weaker sales of ophthalmic medical equipment. Despite the top-line contraction, net profit inched up 3.1% to RMB91.19 million, supported by a markedly lower effective tax rate of 20.5% (2024: 43.0%) and a 46.6% drop in finance costs to RMB19.59 million following loan repayments and lower EURIBOR-linked rates. Basic earnings per share improved to RMB0.66 from RMB0.63.
Gross profit slipped 4.6% to RMB633.20 million, and gross margin narrowed slightly to 45.9% (2024: 46.4%), reflecting unfavourable FX movements, lower average selling prices for intraocular lens (IOL) after national procurement price cuts, and a less favourable sales mix.
Proprietary Products were the principal growth driver: revenue rose 14.3% to RMB429.36 million, lifting their contribution to 38.1% of product sales (2024: 31.4%). Within this segment, IOL sales hit a record RMB358.60 million, up 13.2%. Distribution Products revenue contracted 14.9% to RMB697.60 million amid intensified domestic competition and slower hospital tendering, while Technical Services income expanded 5.3% to RMB238.47 million.
R&D spending increased 18.1% to RMB92.58 million, representing 6.7% of revenue. Gaush advanced its “Global 4+2” R&D footprint, securing multiple domestic approvals for corneal confocal microscopes, fundus cameras, frequency-domain biometer and ophthalmic electrophysiological diagnostic systems, alongside several consumable product registrations.
Operating expenses reflected strategic investments: selling and distribution costs rose 5.1% to RMB244.77 million amid talent build-up and international market expansion, while administrative expenses climbed 19.7% to RMB174.20 million due to R&D platform integration and higher staffing costs. Other expenses fell to RMB17.75 million (2024: RMB41.03 million) following lower goodwill impairment.
The balance sheet remained solid. Cash and cash equivalents stood at RMB421.01 million, virtually unchanged year on year, while the gearing ratio improved to 29.9% (2024: 34.8%) after Gaush repaid EUR18.69 million in loans. Capital expenditure fell 58.4% to RMB33.80 million. Inventory turnover lengthened to 172 days (2024: 163 days) as R&D units stocked inputs ahead of new product launches.
Given capital allocation priorities and ongoing investments, the Board proposed no final dividend for 2025 (2024 payout: HK$0.30 per share).
Management reiterated its strategy to accelerate R&D, boost the revenue share of higher-margin proprietary offerings, deepen the surgical treatment segment, and expand internationally—particularly in China and Europe—while aiming to further strengthen operational efficiency and talent development.