RAILY AESMED (02135) issues profit warning, with expected mid-term shareholder loss of about 8 million yuan increasing year-on-year.

RAILY AESMED (02135) announced that the Board of Directors expects the Group to achieve: an income of approximately RMB 85 million for the six months ended June 30, 2025 (income of approximately RMB 117 million for the six months ended June 30, 2024); and a loss attributable to owners of the parent company of approximately RMB 8 million for the six months ended June 30, 2025 (loss attributable to owners of the parent company of approximately RMB 2 million for the six months ended June 30, 2024). The Board of Directors believes that the loss is mainly due to the following reasons: during the six months ended June 30, 2025 (reporting period), due to intense market competition, the Group's total revenue decreased by approximately RMB 32 million compared to the six months ended June 30, 2024, leading to an operational loss of approximately RMB 2 million in the medical beauty services and medical beauty management consulting services division; during the reporting period, the Group incurred expenses of approximately RMB 1 million for equity purchases; and in order to expedite the research and development and production of the Group's medical device products, the Group increased its investment in the research activities of its indirectly owned subsidiary Suzhou Ruiquan Biomedical Technology Co., Ltd. (formerly known as Suzhou Yonglan Biomedical Technology Co., Ltd.). As of June 30, 2025, management and research expenses of Suzhou Ruiquan amounted to approximately RMB 1 million. These expenses have not yet been recovered from the economic benefits generated during the reporting period.