Chaoju Eye Care Holdings Limited reported mixed interim results for the six months ended 30 June 2026, showing modest top-line growth but a double-digit decline in profitability, as rising costs and lower government subsidies weighed on margins.
Revenue edged up 1.8 % year on year to RMB 710.70 million, supported by a 3.7 % rise in consumer ophthalmic services to RMB 372.92 million, which now contribute 52.5 % of total turnover. Basic ophthalmic services contracted 4.1 % to RMB 323.78 million, reflecting reduced medical-insurance settlement prices, while sales of equipment and consumables surged to RMB 13.99 million from RMB 1.30 million.
Gross profit slipped 3.5 % to RMB 287.24 million, and the gross margin narrowed to 40.4 % from 42.6 %. The decline was driven by a 5.7 % increase in cost of sales to RMB 423.46 million and a shift in revenue mix toward lower-margin activities.
Operating expenses moved higher: selling and distribution costs rose 5.3 % to RMB 51.41 million on increased marketing outlays, and administrative expenses climbed 10.2 % to RMB 112.59 million due to recruitment of senior personnel. Other income and gains fell 34.7 % to RMB 24.74 million, reflecting reduced government grants and lower interest income.
Consequently, profit before tax decreased 17.9 % to RMB 125.66 million and net profit dropped 16.1 % to RMB 92.94 million, compressing the net margin to 13.1 % from 15.9 %. On a non-IFRS basis, adjusted net profit declined 19.3 % to RMB 95.48 million, with the corresponding margin sliding to 13.4 %. Basic earnings per share fell 12.5 % to RMB 0.14. The board declared no interim dividend.
Operationally, the Group managed a network of 32 ophthalmic hospitals and 32 optical centres across seven provincial-level regions as at 30 June 2026. Out-patient visits rose to 554,891 (+6.3 %), while the average spending per visit remained flat at RMB 797. In-patient admissions were stable at 34,938, but average spending per admission contracted 13.6 % to RMB 5,780 following insurance-related price cuts. Optical centre customer visits increased 2.4 % to 49,982, with average selling price up 7.6 % to RMB 1,052.
Cash generated from operations totalled RMB 174.45 million. Significant investing outflows of RMB 302.30 million, largely for wealth-management products and capital expenditure, together with financing outflows of RMB 175.28 million—mainly dividend payments—reduced cash and cash equivalents to RMB 216.85 million (31 December 2025: RMB 516.34 million). The Group remains in a net cash position, holding RMB 561.10 million in low-risk wealth-management products, equivalent to 18.9 % of total assets. Capital commitments stood at RMB 64.60 million.
Management attributed the revenue resilience to stronger refractive surgery volumes aided by SMILE-PRO equipment upgrades, partially offset by lower regulated prices for basic ophthalmic services. Looking ahead, Chaoju Eye Care intends to deepen its presence in North China, expand into the Yangtze River Delta through new builds and acquisitions, enhance digital capabilities, and pursue further growth in consumer ophthalmology while maintaining its focus on service quality and talent development.