Key takeaway

The company's full-year 2025 and 1Q26 results were in line with expectations. Increased R&D and selling expense investment in 2025 weighed on short-term profit. In 1Q26, the company actively promoted cost reduction and efficiency improvement measures, and profit achieved rapid growth. In the short term, the company's traditional rehabilitation business is expected to recover steadily, and new businesses such as brain-computer interface are beginning to contribute revenue. Revenue for the full year is expected to achieve steady growth. In the medium to long term, the rehabilitation equipment industry will continue to expand under the dual drivers of policy support and agingrelated demand. Leveraging its first-mover advantages and technological accumulation in areas such as brain-computer interface and rehabilitation robots, the company is expected to gradually build an ecosystem moat and open up new growth opportunities.

Event

The company released its 2025 annual report and 2026 first quarter report. In 2025, the company achieved revenue of RMB768 million (YoY +3.26%), net profit attributable to shareholders of the parent company of RMB78 million (YoY -24.08%), and recurring net profit attributable to shareholders of the parent company of RMB58 million (YoY -35.23%). EPS was RMB0.51/share. The company achieved revenue of RMB193 million (YoY +3.78%) in 1Q26, with net profit attributable to shareholders of the parent company of RMB25 million (YoY +10.33%) and recurring net profit of RMB23 million (YoY +24.51%). EPS was RMB0.16/share.

Risks:

1) Risks of industry policy changes: The rehabilitation medical industry is currently supported by policies, but subsequent policy changes may affect manufacturers' profitability levels. Certain domestic policies and other factors are unpredictable, and our earnings forecasts may not be achieved. For example, policy factors such as strengthened compliance in the medical industry could delay bidding demand in some regions. 2) Risks of