SSY Group Limited Issues Significant Profit Warning for FY2025

Key Highlights from the Announcement

• SSY Group Limited (Stock Code: 2005) expects a substantial reduction in profit for the year ended 31 December 2025.
• The estimated decline in profit attributable to equity shareholders is projected to be between 45% and 60%, compared to HK\$1,061,150,000 for FY2024.
• The announcement is made pursuant to the Inside Information Provisions under Hong Kong Listing Rules and Securities and Futures Ordinance.

Factors Contributing to the Profit Reduction

1. Decline in Turnover:
   • The absence of large-scale epidemic events in the PRC in 2025 reduced terminal sales volume for intravenous infusion solutions and other medicines.
   • The first quarter of 2024 saw strong demand due to an influenza outbreak, but this did not continue into 2025.
   • Medical insurance cost controls have further impacted sales volumes throughout the year.
2. Price Pressure from Procurement Initiatives:
   • Expansion of volume-based procurement schemes, including National Centralised Medicines Procurement and local alliance procurement, intensified price competition.
   • Domestic and international industry competition has further exacerbated price pressures.
3. Reduction in Specific Product Turnover:
   • Sales of Bromhexine Hydrochloride in ampoule injection decreased, as it was no longer sold through the National Centralized Medicines Procurement scheme.

Shareholder and Investor Considerations

• This profit warning is likely to be highly price-sensitive and could significantly affect the share value of SSY Group Limited.
• Investors should note that the preliminary figures are based on unaudited management accounts. Actual results may differ once the annual audit is completed.
• The company has indicated that, despite these challenges, it maintains a solid financial position and cash flow.
• The Group is actively pursuing product diversification, with increased sales in oral preparations and bulk pharmaceutical products to optimize its product mix and mitigate risks.
• Management is committed to monitoring the situation closely and taking timely measures as 2026 progresses.

Board and Management Updates

• The Board comprises executive Directors Mr. Qu Jiguang, Mr. Su Xuejun, Mr. Meng Guo, Mr. Chow Hing Yeung, and Ms. Qu Wanrong; non-executive Director Mr. Liu Wenjun; and independent non-executive Directors Mr. Wang Yibing, Mr. Chow Kwok Wai, and Mr. Jiang Guangce.
• Chow Hing Yeung, Executive Director and Company Secretary, signed the announcement on 16 February 2026.

Investor Caution

Shareholders and potential investors are strongly advised to exercise caution when dealing in the securities of SSY Group Limited, given the significant reduction in profit forecast and the price-sensitive nature of the announcement.

• The finalized consolidated annual results for FY2025, including audited figures and further details, will be published in the company’s annual results announcement and annual report in accordance with the Listing Rules.

Disclaimer

The information contained in this article is based on the company’s preliminary unaudited management accounts and public announcement. Actual results may differ once audited financial statements are released. Investors should seek independent financial advice before making any investment decisions. This article does not constitute investment advice, solicitation, or an offer to buy or sell any securities.

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