HAOHAI BIOTEC (06826) has announced its 2025 preliminary financial results. The company reported total operating revenue of approximately 2.473 billion yuan, representing a decrease of 8.33% compared to the previous year. Net profit attributable to owners of the parent company was about 251 million yuan, a decline of 40.3% year-on-year. After excluding non-recurring gains and losses, the net profit attributable to owners of the parent was approximately 160 million yuan, down 57.67% from the prior year. Basic earnings per share were 1.08 yuan.

During the reporting period, as the national volume-based procurement program for intraocular lens products entered the second phase of its two-year agreement, and amid intensifying industry competition, the company's subsidiary, Shenzhen New Industry Ophthalmology Technology Co., Ltd., which operates the U.S.-imported Lenstec brand intraocular lens business, faced significant operational pressure. On one hand, the total number of domestic cataract surgeries in 2025 decreased compared to 2024, leading to a contraction in overall market demand. On the other hand, the number of competing products in the market increased, with domestic lenses, in particular, posing greater challenges to imported brands due to their significant cost and price advantages. As a result, both the selling price and sales volume of Lenstec products continued to decline throughout 2025, causing Shenzhen New Industry's operating profit for the year to fall short of expectations.

Based on this operational performance, and considering the anticipated price reductions for intraocular lens products with the launch of the second round of national volume-based procurement in the first half of 2026, the company has prudently recognized an impairment provision for goodwill related to Shenzhen New Industry of approximately 140 million yuan. This impairment amount is based on a preliminary financial assessment and the final provision will be determined following evaluation and audit by qualified external assessors and auditors.

Affected by the same industry policies and changing market conditions, the company's other U.S. subsidiary, Aaren Scientific Inc., which is also engaged in the production and sale of intraocular lenses, showed indications of impairment related to its intangible asset—the brand. Following a preliminary impairment test, the company has recognized an impairment provision for this intangible asset of approximately 24.98 million yuan.