Aier Eye Hospital Group Co., Ltd. (爱尔眼科) is grappling with the most severe dual crisis of trust and operational challenges since its IPO.
Recently, an investigative report released by NetEase revealed a "dual-track" charity funding model within the company, generating widespread public skepticism about its practices. Simultaneously, the company's growth has virtually stagnated, and its stock price has fallen back to levels last seen six years ago, with substantial goodwill looming as a major concern.
1. Charity Funds "Returning" Allegations of Insurance Arbitrage The investigation indicates that Aier Eye Hospital has transferred over 55 million yuan to a certain charity foundation from its own Hunan Aiyanjie Public Welfare Foundation between 2021 and 2024 for "eye disease prevention and treatment." However, these funds were subsequently funneled to 15 of Aier Eye's subsidiaries in cities like Jiangmen, Zhuhai, Foshan, Chongqing, and Lanzhou.
A similar chain of funding transfers has emerged in collaborations with welfare foundations for the disabled in Sichuan and Hunan. Essentially, this forms a closed-loop model of "donation—foundation project—subsidiary execution—funds returning." Beneficiaries are required to receive treatment within the Aier Eye system, essentially returning donations back into the company's accounts.
Notably, former employees have revealed that cataract surgeries can yield about 1,300 yuan from insurance funds per case, well above the actual cost. This suggests that even under the guise of "free surgeries," the company is profiting through insurance reimbursements, creating a dual arbitrage between "charity and insurance."
2. Frequent Penalties for Fraud, Increasing Compliance Risks Beyond charity controversies, several hospitals under Aier Eye have faced penalties for insurance fraud, further intensifying public skepticism regarding their operational model.
- Xiangshan Aier Eye Hospital was fined 131,500 yuan for "project swapping charges." - Yangjiang Aier Eye Hospital improperly used 22,400 yuan of insurance funds, which has since been reclaimed due to overcharging issues. - Multiple branches in Benxi and Foshan have also been reported for various insurance violations.
If the return of charity funds and insurance reimbursements operates as a closed loop, it may violate the Charity Law's stipulations against designating related parties as beneficiaries, essentially converting charitable donations into business revenue, which could breach regulatory boundaries.
3. Performance Growth Halts, Stock Price Falls Back to Six Years Ago Amidst these controversies, Aier Eye's fundamentals are also flashing red.
In the first half of 2025, the company reported revenues of 11.507 billion yuan, a year-on-year increase of 9.12%, but the net profit attributable to shareholders was only 2.051 billion yuan, a mere 0.05% increase, marking the lowest growth rate since its IPO. The net profit for the second quarter even saw a year-on-year decline of 12.97%.
Core business profitability is under substantial pressure: the gross margin for refraction projects has fallen to 56.12%; gross margin for optical services is down to 54.21%; and surgery prices continue to decline, with some markets seeing refractive surgery prices drop from 20,000 yuan to around 11,000 yuan.
4. Acquisition Aftermath Surface, 8.7 Billion Yuan Goodwill Risks Emerge Aier Eye has long relied on acquisitions for expansion. As of the end of June 2025, goodwill on its books had reached 8.722 billion yuan, more than a 2.3-fold increase since 2019.
While the company continues to acquire institutions such as Shenzhen Guangsheng Digital and Tongren Aier, the lack of performance growth has heightened the risk of goodwill impairment. If the acquired assets do not meet expected profitability, this will directly impact the profit and loss statement.
Conclusion: Charity Should Not Be a Business; Rebuilding Trust is Difficult From the return of charity funds to insurance arbitrage suspicions, from faltering growth to substantial goodwill concerns, Aier Eye Hospital is facing unprecedented systemic risks. As a benchmark enterprise in the private healthcare sector, how it balances commercial interests with social responsibilities and seeks sustainable growth within compliance has become an urgent topic to address.
Charity is not a business, and healthcare is not merely a capital game. Without rebuilding trust and returning to the essence of medical care, even the highest goodwill cannot support market confidence.
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