ETHK Labs (1931) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell 10.8% YoY to RMB2,820.7m, while profit for the year declined 85.9% to RMB37.4m amid tougher IVD competition, AI-business expenses and higher finance costs.

• Adjusted profit for the year was RMB52.4m, down 81.3% YoY; no final dividend was recommended.

Financial highlights

• Gross profit declined 24.6% to RMB566.4m; EBITDA fell 57.2% to RMB203.7m.

• Profit attributable to owners fell 86.6% to RMB34.9m; adjusted profit attributable to owners declined 81.9% to RMB49.7m.

• Other income and net gains turned to a loss of RMB5.2m, including a net foreign-exchange loss of RMB36.9m versus a gain of RMB1.8m in 2024.

• Finance costs rose 68.7% to RMB60.7m, primarily due to higher average bank borrowings.

Outlook and guidance

• Strategy centers on extending IVD products, distribution reach and hospital coverage, while upgrading hospital solution services through data-driven models and automated processes.

• Planned development priorities include R&D in mass spectrometry, molecular diagnostics and microbiology, greater AI use in IVD development, and pursuing AI robotics opportunities through collaboration and capital investment.

• B-Soft integration is intended to combine IVD distribution with healthcare IT, clinical data and AI capabilities; potential synergies include cross-selling, shared R&D and broader deployment across hospital networks.