SCIENTECH's stock plummeted 5.95% during intraday trading on Tuesday, following the release of its 2025 financial results which revealed a mixed performance with declining profitability.

The company reported revenue growth of 11.9% to approximately RMB 528 million, but net profit attributable to shareholders declined 2.4% to about RMB 240 million. The earnings were pressured by a significant contraction in gross margin, which fell to 84.7% from 90.0% a year earlier due to raw material costs surging 175.90%. Selling expenses also jumped 50.18% to RMB 106.83 million.

Management noted that occluder sales were negatively impacted in the second half of 2025 by distributor destocking related to China's inter-provincial volume-based procurement process. The company also reduced its final dividend to RMB 0.50 per share from RMB 0.62 per share in the previous year. Despite these challenges, SCIENTECH expects "relatively high" revenue growth in 2026, supported by the accelerated adoption of biodegradable occluders which were excluded from the centralized procurement scope.