San Ai Health Group ( 01889.HK ) Profit Warning: Expected annual loss of 25.5 million to 27.5 million yuan

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Gelonghui, March 29 - Sian Health Group (01889.HK) announced that for the year ending December 31, 2025, the company expects to record a loss between RMB 25.5 million and RMB 27.5 million, while for the same period in 2024, it recorded a profit of approximately RMB 3.4 million.

The expected transition from profit in 2024 to loss in 2025 is mainly due to: (i) the company recording a net loss of approximately RMB 0.8 million from the sale of subsidiaries in 2025, while in the same period in 2024, it recorded a one-time non-recurring gain of approximately RMB 17.1 million from the sale of subsidiaries; (ii) the company recording a decrease in gross profit of approximately RMB 2.5 million in 2025 compared to the same period in 2024, primarily due to the continued rise in costs of Chinese medicinal materials, which outpaced the increase in selling prices of the company’s end products; and (iii) the company has recognized an increase in distribution costs and administrative expenses totaling approximately RMB 5.0 million during the period, mainly attributed to Beijing Hangyang Health Technology Co., Ltd. and its subsidiaries, with a significant portion not recognized in the same period in 2024.

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