The artificial lens market is becoming more competitive, and Haohai Shengke's net profit attributable to the parent company decreased by approximately 40% year-on-year last year.

On the evening of February 27th, Haohai Biological Technology (SH688366, stock price 45.98 yuan, market value 10.601 billion yuan) released its 2025 performance forecast. In 2025, the company achieved operating revenue of approximately 2.473 billion yuan, a year-on-year decrease of 8.33%; net profit attributable to shareholders of about 251 million yuan, down 40.30% year-on-year; and net profit after deducting non-recurring gains and losses of 160 million yuan, a decline of 57.67% year-on-year.

Regarding the main factors affecting business performance, Haohai Biological explained in its performance forecast that during the reporting period, as the national volume-based procurement of artificial lens products entered the second phase of the two-year agreement, combined with increasingly fierce industry competition, the business of its subsidiary Shenzhen New Industry Ophthalmic New Technology Co., Ltd. (hereinafter referred to as “Shenzhen New Industry”) operating the imported Lenstec brand artificial lens business faced significant operational pressure.

Affected by expectations of price reductions in centralized procurement, the company provisioned over 1.5 billion yuan for goodwill impairment.

Data shows that Haohai Biological is a technology-driven enterprise engaged in the research, development, production, and sales of medical devices and pharmaceuticals. Currently, the company focuses on four rapidly developing treatment fields: medical aesthetics and wound care, ophthalmology, orthopedics, and surgery. Additionally, Haohai Biological is a well-known domestic hyaluronic acid manufacturer and the largest producer of orthopedic joint cavity viscoelastic supplements in China.

After recording single-digit revenue growth in 2024, Haohai Biological’s revenue in 2025 experienced its first year-on-year decline in nearly five years.

The company attributes this decline mainly to its ophthalmology business, especially the significant market pressure faced by artificial lens products. The company stated that, on one hand, the total number of cataract surgeries in China in 2025 decreased compared to 2024, leading to a decline in overall market demand; on the other hand, increased competition from domestic brands, which leverage significant cost and price advantages, has posed greater challenges to imported brands. Sales prices and volumes of Lenstec products continued to decline in 2025, and Shenzhen New Industry’s operating profit for 2025 did not meet expectations.

Furthermore, Haohai Biological indicated that based on the above operational performance, combined with the expectation of a second round of national volume-based procurement for artificial lens products in the first half of 2026, the company prudently provisioned approximately 1.4 billion yuan for goodwill impairment of Shenzhen New Industry. Due to changes in industry policies and market environment, the intangible assets—specifically the brand—held by its American subsidiary Aaren Scientific Inc., involved in the production and sale of artificial lenses, also showed signs of impairment. Preliminary impairment testing led the company to record an impairment provision of about 24.98 million yuan for this intangible asset.

Slowdown in Medical Aesthetics Business Growth, Past Pillar Ophthalmology Business Becomes a Drag on Performance

Ophthalmology was once the main driver supporting Haohai Biological’s performance. A review of the company’s development history shows that its four major business segments—ophthalmology, medical aesthetics, orthopedics, and surgery—were mainly established through continuous acquisitions.

Before 2023, ophthalmology was the company’s largest revenue source. However, as centralized procurement policies deepened and market competition intensified, this once-pillar business has gradually become a drag on the company’s overall performance.

A review of the company’s past financial reports by the Daily Economic News found that in 2024, Haohai Biological’s ophthalmology revenue declined 7.60% year-on-year to 858 million yuan. Among these, revenue from artificial lenses was 328 million yuan, down 14.06%; revenue from ophthalmic viscoelastic agents also fell 19.53% year-on-year. Haohai Biological stated that although the bid-winning artificial lens products saw some increase in sales volume, the significant price reductions in volume-based procurement led to a year-on-year decline in sales revenue for artificial lenses in that year.

While the ophthalmology business was under pressure, the company’s highly anticipated medical aesthetics business also failed to sustain its previous high growth. In 2023, medical aesthetics surpassed ophthalmology for the first time, becoming Haohai Biological’s largest revenue source, with hyaluronic acid product revenue soaring 95.54% year-on-year. However, in 2024, the growth rate of hyaluronic acid revenue sharply slowed to 23.23%.

The sluggish growth of the medical aesthetics sector reflects the industry’s shift away from high growth and increasing market competition. According to a research report by Huaxi Securities, the industry faces short-term pressure mainly due to more cautious consumer decision-making, leading to lower average spending per customer. Huaxi Securities believes that the core injection product track in the current medical aesthetics industry is highly competitive, and new materials are becoming the key to breaking through market barriers.

Additionally, according to incomplete statistics from Medical Aesthetics Talk, in 2025, 52 Class III medical aesthetic devices were approved, including 25 hyaluronic acid products, 7 collagen products, 5 youth-boosting injections, and 2 “少女针” (youth needles). The medical aesthetics market is facing oversupply, severe homogenization, and price wars.

As the traditional pillar ophthalmology business continues to shrink due to centralized procurement, and the new engine—medical aesthetics—slows in growth, Haohai Biological finds itself under performance pressure. In 2024, the company’s revenue increased by only 1.64% year-on-year, and net profit attributable to shareholders increased by just 1.04%. According to the 2025 performance forecast, the company experienced declines in both revenue and net profit during the reporting period.