Meihao Medical Group Co., Ltd Issues Profit Alert: Significant Reduction in Loss for 2025

Key Highlights

• Expected Net Loss for 2025: The Group anticipates a net loss between RMB13.1 million and RMB19.8 million for the year ended 31 December 2025, a substantial improvement compared to the net loss of RMB32.6 million recorded in 2024.
• Factors Behind the Improved Financial Performance:
  • Revenue Growth: The Group’s revenue scale has increased significantly, with business expansion driving economies of scale. This has helped dilute fixed costs such as depreciation and rent, markedly improving overall profitability.
  • Lower Share-Based Payment Expenses: There was a significant reduction in share-based payment expenses in 2025, contributing to the reduction in net loss.
  • Optimised Human Resources: Continuous optimisation of human resources allocation and personnel structure, as well as enhanced per capita efficiency, led to a steady decline in the proportion of staff remuneration to revenue, demonstrating effective control over human resources costs.
  • Strengthened Cost Control: Ongoing improvements in internal operational efficiency and strict control over various operating expenses resulted in a decrease in operating costs and further optimisation of operational quality.
• Healthy Financial Position: Despite the ongoing loss, the Group maintains sufficient cash reserves and a healthy financial position.
• Ongoing Assessment and Future Focus: The Board will continue to assess the impact of the challenging economic environment on operations and financial performance, and will explore new business and profit directions. The Board emphasises that the current financial performance is a short-term phase, with continued focus on business expansion in the coming year.
• Annual Results Not Finalised: The information is based on preliminary unaudited consolidated management accounts. The final audited results may differ and will be announced by the end of March 2026.

Important Points for Shareholders and Potential Investors

• Potential Price Sensitivity: The significant reduction in net loss is a material improvement, which may positively affect investor sentiment and the share price in the short term. However, the company remains in a net loss position.
• Risks: The results disclosed are unaudited and subject to adjustment. Investors should be cautious as the final figures may differ from the preliminary estimates.
• Business Strategy: The Group is actively working to expand its business and improve operational efficiency, which could further impact future profitability and share value.
• Caution Advised: Shareholders and investors are advised to exercise caution when dealing in the shares of Meihao Medical Group, pending the final audited results and further announcements.

Leadership and Board Composition

The announcement is signed by Mr. Wang Xiaomin, Chairman, Chief Executive Officer, and Executive Director. The Board includes two executive directors (Mr. Wang Xiaomin and Dr. Zhou Jian) and three independent non-executive directors (Ms. Tam Hon Shan Celia, Mr. Ng Ming Chee, and Mr. Zhang Yongcun).

Conclusion

The substantial reduction in net loss for 2025 signals improved operational efficiency and cost control, marking a pivotal moment for Meihao Medical Group. While the Group remains loss-making, the trend is positive, and ongoing business expansion and optimisation may support future profitability. Investors should closely monitor further announcements and audited results, as these developments could influence the Group’s share value.

Disclaimer: This article is based on unaudited preliminary financial data and information provided by Meihao Medical Group Co., Ltd. The final audited results may differ. Investors are strongly advised to exercise caution and consult with their financial advisers before making any investment decisions. This article does not constitute investment advice.

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