REPUBLIC HC issues profit warning, expects significant increase in mid-term net loss
REPUBLIC HC issued a profit warning, expecting a significant increase in net losses for the six months ending June 30, 2025, compared to SGD 1.088 million in the same period of 2024. The main reasons include intensified market competition leading to a decline in revenue, economic uncertainty making patients price-sensitive, increased compliance costs due to revisions in medical regulations, and exchange rate fluctuations causing foreign exchange losses. The group's education and expansion business in the Philippines also faces high operating costs
According to the announcement from REPUBLIC HC (08357), the group expects a significant increase in net loss for the six months ending June 30, 2025, compared to a net loss of approximately SGD 1.088 million in the same period of 2024.
The increase in net loss attributable to shareholders is mainly due to the net impact of the following factors: 1. The group's revenue decline is due to intensified market competition. The entry of new participants and the aggressive expansion of existing competitors have significantly increased competitive pressure. Many participants have launched enhanced marketing activities and introduced new service offerings, diverting some of the group's existing patient base. 2. Changes in tariffs and the uncertainty of the economic environment have made patients more price-sensitive, further impacting the group's revenue. 3. Recent revisions to healthcare regulations have increased the group's compliance costs and operational burdens, leading to a decline in overall financial performance. 4. The group incurred foreign exchange losses due to the significant depreciation of the US dollar and Hong Kong dollar against the Singapore dollar (the group's functional currency). The group's education business and expansion in the Philippines also incurred higher operating costs. These initiatives were not implemented in the previous year and are currently in the early investment stage, with no significant revenue contribution yet
