HONLIV HEALTH (09906) issued a profit warning, expecting a net loss attributable to shareholders for the mid-term not exceeding 20 million yuan, a turnaround from profit to loss year-on-year.

HONLIV HEALTH (09906) announced that it is expected to incur a net loss not exceeding RMB 2 million for the six months ending on June 30, 2025, which will be attributed to the owners of the company. This is in contrast to a net profit of approximately RMB 20 million for the previous six months ending on June 30, 2024. The Board of Directors believes that the expected change from profit to loss is mainly due to a decrease in demand for inpatient medical services leading to a decrease in revenue. Additionally, based on the settlement results of the 2024 annual public medical insurance plan completed in May 2025, the actual settlement rate was lower than the estimated settlement rate used in the comprehensive financial statements for the year ending December 31, 2024. This difference resulted in a decrease in inpatient service revenue for this period and further led to a reduction in the estimated settlement rate for inpatient service revenue covered by the plan for the first half of 2025.