Company: GEHC
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001932393-25-000014
Chunk: 110

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 2
Chunk 110
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 on purchasing decisions by both public and private customers in China and other markets as result of the current trade environment, as well as other actions related to tariffs and trade frictions, investigations, or activities that could similarly increase our costs or otherwise impact our business. In addition, if negative sentiment towards U.S. companies influences the purchasing decisions of global customers, our business could be impacted materially.

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China Market

We continue to monitor developments in the market in China. In March 2024, the government in China announced a new stimulus program (“2024 stimulus”) that includes the healthcare sector and is being implemented through China’s provinces. In addition, the focus of the government in China on combating corruption in the healthcare sector remains ongoing, and we expect it to remain a focus in the future. These factors contributed to delayed orders and revenues in our China business throughout 2024 and the first quarter of 2025. We expect the 2024 stimulus program will result in opportunities for our business in China in the longer term, but it has had short-term impacts as provinces develop and announce their plans and customers begin to make purchasing decisions. We expect these factors to continue to impact our orders and revenues in the near term, although we are unable to predict the exact duration or magnitude of the impact. We expect both of these impacts to be temporary, and we believe the focus of government policy in China on expanding access to healthcare will benefit our business in China in the long term.

Russia and Ukraine Conflict

We had $143 million and $162 million of assets in, or directly related to, Russia and Ukraine as of March 31, 2025 and December 31, 2024, respectively, none of which are subject to sanctions that impact the carrying value of the assets. We generated revenues of $64 million and $77 million from customers in these two countries for the three months ended March 31, 2025 and 2024, respectively. The potential inability to repatriate earnings from these two countries will not have a material impact on our ability to operate.

We continue to monitor the effects of Russia’s invasion of Ukraine, including the consideration of financial impact, cybersecurity risks, the applicability and effect of sanctions, and the employee base in Ukraine and Russia. Under the current U.S. Department of Commerce regulations, we are permitted to export, re-export, or transfer medical equipment and spare parts that meet stated criteria under a License Exception, which has eliminated the need for us to obtain individual