HAOHAI BIOTEC (06826) announced its annual results for the period ending December 31, 2025. The company reported revenue of RMB2.446 billion, representing a decrease of 8.7% compared to the previous year. Net profit attributable to owners of the parent company was RMB251 million, a decline of 40.3%. Basic earnings per share were RMB1.08, and the board has proposed a final dividend of RMB0.60 per share (inclusive of tax).
During the reporting period, the Group's operating performance was impacted by multiple external factors. A key subsidiary in Shanghai, Qisheng, was affected by an increase in the value-added tax rate from 3% to 13%, which led to a decrease in the post-tax selling price and sales revenue for related products. Furthermore, the national volume-based procurement program for intraocular lens products entered the second phase of its two-year agreement period. This, combined with increasingly intense industry competition and a growing number of competing products, created significant challenges. Domestic intraocular lens products, in particular, posed greater competition to imported brands due to their substantial cost and price advantages. Additionally, the total number of cataract surgeries in China during 2025 was lower than in 2024, leading to an overall decline in market demand. As a result, the operating performance of the Group's intraocular lens business fell short of expectations.
In anticipation of potential price reductions associated with the second round of the national centralized procurement program for intraocular lenses, which is expected to commence in the first half of 2026, the Group has adopted a prudent approach. It has recognized an impairment provision of approximately RMB141 million on the goodwill of its subsidiary Shenzhen New Industry, which handles the US-imported Lenstec brand intraocular lens business. An additional impairment provision of approximately RMB25 million was recognized on the intangible assets—specifically the brand—held by its US subsidiary, Aaren Scientific Inc., which is engaged in the production and sale of Aaren brand intraocular lens products.