Yonghe Medical reported a turnaround for the year ended 31 December 2025, posting net profit of RMB 73.60 million versus a RMB 226.60 million loss in 2024. Net profit margin reached 4.1%.

Revenue inched up 0.2% to RMB 1.81 billion, while gross profit grew 10.1% to RMB 1.19 billion on a 5.9-point improvement in gross margin to 66.0%. Profit before interest, taxes, depreciation and amortisation surged 157.9% to RMB 363.70 million.

Segment performance • Hair-transplant services contributed 76.1% of revenue, rising 3.3% to RMB 1.38 billion on a 19.7% increase in procedures to 71,380. Average spending per patient fell 13.6% to RMB 19,265. • Medical hair-care services fell 8.2% to RMB 409.18 million, with patient numbers up 2.9% to 79,492 and average ticket size down 10.8% to RMB 5,147. • “Others” revenue decreased 14.2% to RMB 24.05 million.

Cost discipline underpinned the earnings recovery. Cost of sales dropped 14.7% to RMB 614.10 million, led by lower staff, depreciation and consumables expenses following clinic rationalisation. Selling and marketing expenses fell 10.7% to RMB 806.15 million and G&A costs declined 16.9% to RMB 237.09 million.

Network optimisation The group operated 63 hair-transplant clinics and seven stand-alone Svenson centres at year-end, down from 66 and eight respectively a year earlier. Mature clinics rose to 55 (2024: 52) after closures of under-performing sites.

Financial position Cash, cash equivalents and term deposits increased to RMB 749.20 million (2024: RMB 487.80 million). All bank borrowings were cleared during the year, leaving gearing at zero. Net cash from operations more than doubled to RMB 495.53 million, while capex dropped to RMB 18.90 million.

Dividend The board proposed a final dividend of RMB 0.076 per share (about HK$0.086), totalling roughly RMB 40 million, subject to approval at the 19 May 2026 AGM. Payment is expected on or before 12 June 2026.

Change in use of IPO proceeds Of the HK$1.53 billion raised in 2021-22, HK$75.10 million remains unutilised. The company reallocated HK$16.0 million from product-and-service innovation to technology R&D and extended the spending deadline for three categories—innovation, R&D and industry-resource integration—from 31 December 2025 to 31 December 2028. The “industry-resource integration” scope now also covers upstream and downstream hair-industry assets.

Outlook Management cited rapid industry expansion—market size forecast at RMB 116.54 billion by 2028—and highlighted continued investment in digital platforms, AI-enabled diagnostic tools and a broadened female-customer offering to support “quality growth”.