HYGEIA HEALTH (06078) Issues Profit Warning, Expects Interim Net Profit to Decline 34%-39% Year-on-Year

Stock News
08/15

HYGEIA HEALTH (06078) announced that for the six months ended June 30, 2025, the company expects: revenue to decline approximately 15% to 17% compared to the same period last year; net profit to decline approximately 34% to 39% year-on-year; non-IFRS adjusted net profit to decline approximately 32% to 37% compared to the same period last year; and net cash from operating activities to increase approximately 28% to 32% year-on-year.

The decline in the group's revenue, net profit, and non-IFRS adjusted net profit for the six months ended June 30, 2025, was primarily due to industry impacts from centralized procurement and DRG payment reforms, macroeconomic effects, and increased depreciation and amortization from the group's newly opened hospitals. The group is actively responding to macroeconomic challenges and changes in the industry environment, maintaining stable corporate operations and market competitiveness.

The group expects trade receivables as of June 30, 2025, to decline approximately 10% to 11% compared to December 31, 2024, while total liabilities are expected to decline approximately 4.5% to 5.5%. The group's capital expenditure for the six months ended June 30, 2025, is expected to decline approximately 28% to 29% year-on-year, with free cash flow expected to improve significantly.

In the first half of 2025, the group continued to enhance hospital technical capabilities, innovate business models, and strengthen brand influence. Additionally, the group will consistently uphold its vision of "making healthcare warmer and life healthier," continuously optimizing service processes to meet patients' diverse health needs and improve patient satisfaction. The company aims to further improve its revenue structure, strengthen refined management, enhance operational efficiency, and increase shareholder returns. The group remains confident in the long-term development prospects of both the industry and itself.

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