HONLIV HEALTH issued a profit warning, expecting a mid-term net loss attributable to shareholders of no more than 2 million yuan, a year-on-year loss compared to profit
HONLIV HEALTH issued a profit warning, expecting a net loss attributable to shareholders of no more than 2 million yuan for the interim period ending June 30, 2025, a turnaround from a net profit of approximately 20 million yuan for the same period in 2024. The board of directors pointed out that the loss is mainly due to a decrease in demand for inpatient medical services and a settlement rate of public health insurance plans lower than expected, resulting in a decline in revenue
According to the announcement from Hongli Healthcare Management (09906), the group expects to incur a net loss attributable to the owners of the company not exceeding RMB 2 million for the six months ending June 30, 2025, while for the six months ending June 30, 2024, the net profit attributable to the owners of the company is approximately RMB 20 million.
The board of directors believes that the expected turnaround from profit to loss is mainly due to a decrease in demand for inpatient medical services, leading to a reduction in revenue; and based on the settlement results of the 2024 public medical insurance plan completed in May 2025, the actual settlement rates are lower than the estimated settlement rates used in the consolidated financial statements for the year ending December 31, 2024. This discrepancy has resulted in a decrease in inpatient service revenue for the current period, and consequently, a further downward adjustment of the estimated settlement rates for inpatient service revenue covered by the plan in the first half of 2025
