Guangzheng Group Co Ltd

Guangzheng Eye Hospital announced after market close on October 8 that its subsidiary Shanghai New Vision Eye Hospital Co., Ltd. received an administrative penalty decision from the Shanghai Municipal Medical Security Bureau. For including medical expenses that did not fall within the payment scope of the medical security fund in its settlements, causing losses to the fund, it was fined RMB 1.0456 million. The announcement showed that the conduct fell under item 6 of Article 38 of the Regulations on the Supervision and Administration of the Use of Medical Security Funds. As of the disclosure date, Guangzheng Eye Hospital and its controlled subsidiaries had accumulated administrative penalties totaling RMB 1.9712 million over the preceding 12 consecutive months, accounting for 10.11% of the company's most recent audited net profit attributable to the parent. All fines have been paid and recorded in current profit or loss. The company said the penalty will affect operating results for 2026, with the final actual impact subject to the annual audit by its accounting firm, but it will not have a material impact on long-term development and does not trigger mandatory delisting for major violations. The subsidiary hospital has completed special rectification as required, including organizing study of the relevant regulations and medical insurance service agreements, assigning dedicated personnel for medical insurance management, improving oversight procedures, and establishing accountability mechanisms.

Guangzheng Eye Hospital released its 2026 interim report, with net profit attributable to the parent company of 17.7758 million yuan. The company's total operating revenue was 390 million yuan, down 10.55 percent from the same period last year, a decrease of 46.0085 million yuan. Net cash inflow from operating activities was 31.3027 million yuan. The latest asset-liability ratio was 90.19 percent, gross margin was 39.88 percent, and return on equity was 15.80 percent. Diluted earnings per share were 0.03 yuan, total asset turnover was 0.34 times, and inventory turnover was 8.85 times. The number of shareholders was 37,100, and the top ten shareholders held 30.92 percent of total share capital.

A wholly owned subsidiary of Guangzheng Eye Hospital Group, Guangzheng Construction Group, has taken Nantong No.4 Construction Group and the Eighth Affiliated Hospital of Xinjiang Medical University to court over unpaid construction fees, with the amount involved totaling approximately 26.27 million yuan. After Guangzheng Construction completed the work as a subcontractor, Nantong No.4 Construction failed to pay the outstanding fees. The lawsuit seeks an order for Nantong No.4 Construction to pay 23.55 million yuan in overdue construction fees and 2.71 million yuan in late payment interest, and also asks that the Eighth Affiliated Hospital of Xinjiang Medical University bear payment liability within the scope of the fees it owes to Nantong No.4 Construction. The case has been accepted but has not yet been heard, and the company says it cannot currently assess the specific financial impact. Notably, Guangzheng Eye Hospital reported a net loss attributable to the parent of 19.50 million yuan for 2025, meaning the amount at stake in this lawsuit already exceeds the full-year loss. Moreover, the company's net profit after deducting non-recurring items has been negative for 13 consecutive years from 2013 to 2025.

Guangzheng Eye Care granted 1.5 million restricted shares to 103 incentive recipients at a grant price of 1.84 yuan per share. The company disclosed the incentive plan in an announcement on July 28, detailing the allocation of shares among the recipients. In addition, in the first quarter of 2026, Guangzheng Eye Care achieved revenue of 187 million yuan, with a net loss attributable to the parent company of 3.84 million yuan.