MEIHAO GROUP (01947) announced that the group expects to record a net loss of approximately RMB 8 million to RMB 12 million for the first half of 2025, compared to a net loss of RMB 15.1 million in the first half of 2024.

The announcement stated that the expected loss is primarily attributed to the following factors: Intense competition in the local oral care market, with price wars and excessive competition within the industry intensifying profitability pressures, leading to increased costs for developing new customer groups, lack of effective customer acquisition channels, and unstable conversion rates; Due to slow economic recovery, residents are more inclined toward savings, reducing non-essential medical expenditures. For patients with medical needs, they tend to seek treatment at public hospitals or low-cost private clinics; To enhance the group's brand recognition, advertising expenses have increased for online platform promotions and promotional materials within hospitals, while implementing various sales strategies to attract new customers.