Sanai Health Industry Group Issues Profit Warning for FY2025

Sanai Health Industry Group Company Limited (Stock Code: 1889) has issued a profit warning regarding its financial performance for the year ended 31 December 2025. The Board of Directors has informed shareholders and potential investors that, based on preliminary unaudited management accounts, the Group is expected to incur a significant loss for FY2025.

Key Points from the Announcement

• Expected Loss: The Company anticipates a net loss in the range of RMB25.5 million to RMB27.5 million for FY2025. This is a substantial deterioration compared to a net profit of approximately RMB3.4 million in FY2024.
• Main Reasons for the Loss:
  1. In 2025, the Company recorded a net loss on disposals of subsidiaries of approximately RMB0.8 million. In contrast, there was a significant one-time non-recurring net gain on disposals of subsidiaries totaling RMB17.1 million in FY2024.
  2. The gross profit dropped by approximately RMB2.5 million in 2025 compared to 2024. This was mainly due to a continuous rise in the cost of herbal materials, which outpaced the increase in selling prices of the Group’s end-products.
  3. There was a combined increase of approximately RMB5.0 million in distribution and administration expenses in 2025, primarily attributed to the inclusion of Beijing Hangyang Health Technology Co., Ltd. and its subsidiaries, which were not fully accounted for in the previous year.

Price-Sensitive Information for Shareholders

• The swing from a profit in 2024 to a significant loss in 2025 is material and price sensitive. It may have a direct impact on the Company’s share value as it reflects a substantial decline in profitability.
• The key reasons for this decline—namely, the absence of one-off disposal gains, increased raw material costs, and higher expenses from new subsidiaries—should be carefully considered by investors who may need to reassess the Group’s earnings outlook and risk profile.
• The Company explicitly advises shareholders and investors to exercise caution when trading its shares, due to the potential volatility arising from this profit warning.

Additional Details

• The annual results for FY2025 are still being finalized and have not yet been reviewed by the audit committee or audited by the external auditors. As such, the final results may differ from the figures disclosed in this profit warning.
• The official annual results announcement for FY2025 is expected to be published before the end of March 2026.
• The Board currently comprises three executive directors—Mr. Yuan Chaoyang, Mr. She Hao, and Mr. Xie Haijing—as well as three independent non-executive directors—Professor Zhu Yi Zhun, Mr. Khor Khie Liem Alex, and Ms. Tsui Yuen Tan.

Conclusion

The profit warning issued by Sanai Health Industry Group signals a sharp reversal in financial performance and contains several pieces of price-sensitive information. The anticipated loss, driven by higher costs, increased expenses from new subsidiaries, and the absence of one-off gains, may have a significant impact on the Company’s share price and investor sentiment. Shareholders are urged to monitor subsequent announcements closely and to act with caution in the market.

Disclaimer: This article is based on preliminary unaudited information provided by Sanai Health Industry Group Company Limited. Investors should be aware that actual results may differ. The information herein does not constitute investment advice. Shareholders and potential investors are advised to exercise caution and consult their professional advisors before making any investment decisions.

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