Sanai Health Group (01889) has announced an expected net loss ranging from RMB 25.5 million to RMB 27.5 million for the fiscal year ending December 31, 2025. This contrasts with a net profit of approximately RMB 3.4 million reported for the same period in 2024. The projected shift from profit to loss in 2025 is primarily attributed to several factors. Firstly, the company recognized a net loss of about RMB 0.8 million from the sale of a subsidiary in 2025, compared to a net one-time non-recurring gain of roughly RMB 17.1 million from a similar disposal in 2024. Secondly, gross profit decreased by approximately RMB 2.5 million year-on-year, mainly due to continuously rising costs of Chinese herbal medicines, which outpaced increases in the selling prices of the company's end products. Lastly, combined distribution costs and administrative expenses rose by about RMB 5 million during the period, largely attributable to Beijing Hangyang Health Technology Co., Ltd. and its subsidiaries, with a significant portion of these costs not recorded in the corresponding period of 2024.