GAUSH MEDITECH (02407) issued a profit warning, expecting to achieve a net profit of approximately 80.2 million to 88.6 million yuan for the fiscal year 2024, a decrease of about 48.8% to 53.6% year-on-year.

GAUSH MEDITECH (02407) announced that it is expected to achieve a net profit of approximately RMB 80.20 million to RMB 88.60 million in the 2024 fiscal year, representing a decrease of approximately 48.8% to 53.6% compared to the previous year. According to the information available to the board of directors, the main factors affecting the net profit are as follows: 1. Despite facing the impact of the economic environment and competitive pressures, the group is actively expanding its sales field and achieving a significant increase in revenue in the second half of 2024 compared to the first half of 2024, with the revenue for the 2024 fiscal year remaining relatively stable compared to the previous year. However, due to factors such as exchange rate fluctuations and the implementation of national policies on artificial crystal procurement, the group's comprehensive gross profit margin decreased, resulting in a decrease in gross profit. 2. In response to changes in market demand and competitive pressures, the group plans to adjust the strategic direction of its electrophysiology and optometry products. As a result of this adjustment, the group expects to make impairment provisions for goodwill acquired by certain cash-generating units in the 2024 fiscal year, with an estimated amount of approximately RMB 22.10 million to RMB 24.50 million. The short-term impact of the impairment provision for goodwill will not have any significant adverse effects on the group's future operations and cash flow. 3. The group is closely following national strategic deployments, increasing investment in research and development projects to strengthen its independent innovation capabilities, ensuring long-term competitiveness. Research and development expenditure in the 2024 fiscal year is expected to increase significantly by approximately RMB 21.60 million to RMB 29.40 million compared to the previous year, with the percentage of research and development expenditure to own product income continuing to increase. 4. The Euro remained high throughout the 2024 fiscal year, and the US Dollar strengthened, leading to exchange losses of approximately RMB 5.40 million to RMB 6.00 million in the 2024 fiscal year, compared to exchange gains of approximately RMB 15.60 million in the previous year. Looking ahead, the company remains confident in the industry outlook and will continue to optimize its product structure, accelerate research and development work, deepen sales channel expansion, continuously improve operational efficiency, and strive to achieve steady growth in performance and profitability.