LifeTech Scientific reports sharp profit decline despite revenue growth

LifeTech Scientific Corporation reported a 73.2% decrease in net profit attributable to owners, falling to RMB55.1 million for the six months ended June 30, 2025, compared to RMB205.6 million in the same period of 2024. This was primarily attributed to changes in non-recurring items, including a decrease in gains from financial assets at fair value through profit or loss (FVTPL) and a substantial increase in share-based payment expenses. Revenue, however, saw a modest increase of 3.7% to RMB676.7 million.

Gross profit declined by 3.4% to RMB497.8 million, with the gross profit margin contracting by 5.3 percentage points to 73.6%, influenced by centralized procurement policies and sales portfolio adjustments. Operating profit also decreased significantly by 68.1% to RMB64.4 million, impacted by higher staff costs and reduced FVTPL gains. Selling and distribution expenses rose by 67.3% to RMB250.9 million, while administration expenses increased by 63.1% to RMB118.4 million, largely due to share-based payment expenses.

Despite the profit decline, the company saw an 8.8% increase in total assets to RMB5,333.685 million and a 7.5% rise in total equity to RMB3,736.950 million. Cash and cash equivalents increased by 17.5% to RMB782.6 million. The company continued its R&D efforts, with expenses decreasing by 18.2% to RMB114.5 million, and made strategic investments in Affector Medtech to strengthen its position in the electrophysiology market.