According to the Zhitong Finance APP, SANAI HEALTH GP (01889) announced that it expects to incur a loss ranging from RMB 25.5 million to RMB 27.5 million for the year ending December 31, 2025, compared to a profit of approximately RMB 3.4 million for the same period in 2024.

The expected shift from profit in 2024 to loss in 2025 is mainly due to: (i) the company expects to incur a net loss of approximately RMB 800,000 from the sale of subsidiaries in 2025, while in the same period of 2024, it recorded a one-time non-recurring gain of approximately RMB 17.1 million from the sale of subsidiaries; (ii) compared to the same period in 2024, the company expects a decrease in gross profit of approximately RMB 2.5 million in 2025, mainly due to the continuous rise in the cost of traditional Chinese medicinal materials, which has outpaced the increase in the selling price of the company's end products; (iii) the company has recorded an increase in distribution costs and administrative expenses totaling approximately RMB 5 million during this period, mainly attributed to Beijing Hangyang Health Technology Co., Ltd. and its subsidiaries, with a significant portion not recorded in the same period of 2024