Despite stable growth in China's ophthalmic medical industry in recent years, many companies in the ophthalmic device segment are facing short-term performance pressure due to centralized procurement policies. Recently, several ophthalmic device firms listed in both A-shares and H-shares disclosed their 2025 annual results. Among them, Opulent Eyes (300595) saw a significant decline in net profit, while Haohai Biological Technology (688366) experienced a drop in both revenue and profit. The primary reason for this performance pressure is largely attributed to the impact of centralized procurement, making GAUSH MEDITECH (02407) appear as an outlier.
GAUSH MEDITECH recently released its 2025 annual report. The financial report shows that the company achieved revenue of 1.38 billion yuan, a decrease of 3.36% year-on-year. Meanwhile, profit attributable to shareholders was 96.189 million yuan, an increase of 4.11% year-on-year. Compared to its peers, GAUSH MEDITECH managed to achieve steady net profit growth in 2025. Although the company's revenue also declined, changes in its revenue structure make this report noteworthy.
In its 2022 IPO prospectus, GAUSH MEDITECH clearly positioned itself as "primarily a distributor of经销 products." At that time, the company's product portfolio included 129 items, and it was the only ophthalmic company in China whose products covered seven ophthalmic subspecialties: fundus diseases, cataracts, glaucoma, refractive errors, optometry, ocular surface, and pediatric ophthalmology. However, most of GAUSH MEDITECH's extensive product pipeline at that time was acquired through代理 or acquisitions. According to data from the prospectus, from 2019 to 2021, revenue from sales of经销 products was 986 million yuan, 793 million yuan, and 811 million yuan, accounting for 98.9%, 97%, and 72% of the company's total revenue, respectively. In contrast, the contribution from its self-developed products was far less than its二手经销 business.
Apart from the revenue proportion, R&D expenses from 2019 to 2021 were 2.7 million yuan, 3.1 million yuan, and 23.5 million yuan, accounting for only 0.2%, 0.3%, and 1.8% of revenue, respectively, indicating that self-research and self-production were not the core business at the time.
However, in 2025, GAUSH MEDITECH's revenue structure showed significant changes. Of the total revenue of 1.38 billion yuan, revenue from medical consumables was 614 million yuan, an increase of 15.76% year-on-year; revenue from medical equipment was 513 million yuan, a decrease of 22.83% year-on-year; additionally, revenue from the company's own technical services business was 238 million yuan, an increase of 5.3% year-on-year. It can be seen that during the reporting period, medical consumables surpassed ophthalmic medical equipment to become the primary source of revenue for GAUSH MEDITECH.
In the financial report, GAUSH MEDITECH pointed out that the growth of the medical consumables business was mainly driven by the rapid development of the intraocular lens business and the synergistic effect of a diversified portfolio of ophthalmic medical consumables. Breaking down the company's revenue details, intraocular lens revenue was a key source of income from the company's own products. The report shows that revenue from the company's own products was approximately 429 million yuan, an increase of about 14% year-on-year, accounting for 38.1% of total product sales revenue. As the main growth driver, intraocular lenses generated global revenue of 359 million yuan, an increase of about 13% year-on-year. Both sales volume and revenue in the domestic market achieved double-digit growth, making it the company's largest product line in China. This was primarily due to the implementation of the national centralized procurement policy for intraocular lenses, which increased customer coverage and usage volume.
Statistical data shows that GAUSH MEDITECH currently has seven self-developed intraocular lenses sold domestically, four of which are included in the national centralized procurement catalog. After the implementation of the national procurement policy in the first half of 2024, the sales volume of its procured intraocular lenses increased by more than 50% both year-on-year and month-on-month, demonstrating the positive advantage of centralized procurement in achieving "volume for price" for GAUSH MEDITECH's products.
From the perspective of R&D investment, in 2025, GAUSH MEDITECH's R&D expenses reached 92.58 million yuan, an increase of 18% year-on-year. The ratio of R&D expenses to total revenue rose to 6.7%, a significant improvement compared to previous years.
Why is the market not convinced by the improved performance? Although the financial data from GAUSH MEDITECH's annual report is commendable, the secondary market seems unconvinced. Since hitting a阶段性 high of HK$9.30 on November 5 last year, GAUSH MEDITECH's share price has been on a downward trend. Technically, the stock price has mostly moved along the middle and lower Bollinger Bands during this period, with daily trading volume even falling below 10,000 shares at one point, indicating weak market sentiment.
In 2026, GAUSH MEDITECH's share price continued its previous weak trend. Although it attempted to reach the middle Bollinger Band several times, these rallies lacked volume and failed to reverse market sentiment. The price subsequently fell to a low of HK$5.12 on March 12, with daily trading volume again dropping to 15,700 shares. As the share price had been declining steadily for nearly a month prior, the sudden sharp drop in volume on that day signaled a potential exhaustion of selling pressure. Coupled with ongoing volatility in the broader Hong Kong market and a defensive shift of funds from technology to sectors like energy and healthcare, GAUSH MEDITECH's stock, then at a valuation bottom, began a new technical rally. On March 25, the stock surged over 20% in a single day, pushing the price to the upper Bollinger Band. Assisted by the increase in both price and volume, the stock's RSI indicator also rose to around 80, a level not seen for some time.
However, this strong rally was clearly unsustainable. Looking at the筹码分布图, the prolonged decline had trapped the majority of筹码. The overlap between the 70% and 90%筹码 intervals was close to 80%, with the largest筹码峰聚集 around HK$9, significantly above the average筹码 cost and the resistance level. Therefore, the sharp rise on March 25 increased selling pressure. On March 26, trading volume for GAUSH MEDITECH shares decreased significantly compared to the previous day, indicating reduced enthusiasm from outside investors and heightened观望情绪 among those holding cash.
Since GAUSH MEDITECH had already demonstrated its optimized revenue structure in its 2025 interim report, the market had largely anticipated the annual report's performance. Consequently, a稳健 but not超预期的 report was insufficient to persuade观望持币者. After the annual report was disclosed, GAUSH MEDITECH's share price fell for two consecutive trading days on March 27 and 28, with declines exceeding 8% each day. The stock price even hit an intraday low of HK$5.01 on April 8, representing a maximum decline of 20.73% during the period.
It is worth noting that although GAUSH MEDITECH has been excluded from the Southbound Stock Connect for a year, Southbound capital remains one of the main sources of selling pressure for the stock recently. According to broker trading data, over the past five days, the top five selling seats for GAUSH MEDITECH were Southbound Connect (Shanghai), Citibank, HSBC, Nanyang Commercial Bank, and BNP Paribas, selling 75,200 shares, 46,100 shares, 33,800 shares, 31,900 shares, and 31,600 shares, respectively.
However, compared to the continuous selling by Southbound capital, the biggest problem facing GAUSH MEDITECH is actually the drying up of liquidity. After its exclusion from the Connect, the stock's liquidity visibly slowed. Data shows that in February, March, and April of last year, the monthly trading volumes for GAUSH MEDITECH shares were 13.6134 million shares, 8.7966 million shares, and 2.1247 million shares, respectively. Comparing February (before exclusion) and April (after exclusion), the monthly trading volume plummeted by 84.39%. This year, the lowest monthly trading volume in the first quarter was only 405,900 shares.