Key Highlights

• Yestar Healthcare Holdings Company Limited (HKEX: 2393) expects to report a consolidated net loss of not less than RMB65 million for the year ended 31 December 2025 (FY2025).
• This marks a dramatic reversal from the previous year’s consolidated net profit of approximately RMB903.5 million in FY2024.
• The anticipated swing from profit to loss is attributed to two main factors:
  • The absence of a one-off gain of around RMB1,083.4 million, which was recognized in FY2024 from the redemption of senior notes due in 2026 at a discount. This gain is non-recurring and does not benefit FY2025.
  • Impairment losses on non-financial assets are expected to be recognized in FY2025, further impacting profitability.
• The company is still finalizing its audited consolidated results for FY2025, and figures are based on preliminary unaudited management accounts.
• The official annual results announcement is scheduled for publication on 27 March 2026.

Important Information for Shareholders and Investors

• This profit warning is a material development and may significantly impact investor sentiment and share price.
• The loss is primarily due to the lack of a one-off gain (RMB1,083.4 million in FY2024), highlighting the non-recurring nature of last year’s profit and raising questions about ongoing operational profitability.
• Impairment losses signal potential challenges in asset quality or business operations, which may be a concern for long-term investors.
• Shareholders and potential investors are strongly advised to exercise caution when dealing in the shares of the Company, especially ahead of the final results announcement.

Detailed Explanation

Yestar Healthcare Holdings Company Limited has issued a profit warning stating that, based on a preliminary review of its unaudited management accounts for FY2025 and available information, the Group expects to record a consolidated net loss of at least RMB65 million. This is in stark contrast to the previous year’s net profit of RMB903.5 million, representing a significant swing in financial performance.

The main driver of this reversal is the absence of a one-off gain of RMB1,083.4 million, which was recognized in FY2024 from the redemption of senior notes due 2026 at a discount. This gain was a unique event and will not be repeated in FY2025. As a result, the underlying profitability of the company is under pressure.

Additionally, impairment losses on non-financial assets have further weighed on the Group’s results for FY2025. While the precise nature and extent of these impairments are not detailed in the announcement, such losses may indicate operational or market-related challenges affecting the valuation of the company’s assets.

The company emphasizes that these estimates are subject to further internal review and possible adjustment during the finalization of the audited results, which are expected to be disclosed on 27 March 2026. The announcement reiterates to shareholders and potential investors to approach trading in the company’s shares with caution given the financial developments.

Company Board and Management

As of the date of the announcement, the Board of Directors comprises Mr. Wang Chunlai (CEO and Executive Director), Mr. Qiao Jinrong, and Ms. Liao Changxiang as executive directors; Mr. Hartono James as a non-executive director; and Mr. Zeng Jinsong, Mr. Zhao Ziwei, and Koeswondo Michael David as independent non-executive directors.

Conclusion

The anticipated net loss for FY2025 and the absence of the previous year’s one-off gain are likely to be viewed negatively by the market. The announcement is a clear warning of deteriorating financial performance, which is likely to affect investor confidence and the company’s share price. Investors should stay alert to further disclosures and consider the implications of impairment losses on the Group’s future outlook.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should exercise caution and consult professional advisers before making investment decisions based on this information.

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