AUSTAR Life Sciences (06118) has announced a positive profit forecast. Based on a preliminary assessment of the group's unaudited consolidated management accounts and currently available information for the year ending December 31, 2025, the company expects its attributable profit to owners for the year to be no less than RMB 30 million. This compares to an attributable profit of approximately RMB 16 million for the year ended December 31, 2024.

The significant increase in profitability is primarily attributed to several factors. Firstly, the group's focused implementation of strategic efficiency measures, particularly the optimization of administrative and research and development (R&D) expenses, has led to a reduction in operating costs. Secondly, other income has increased, mainly due to foreign exchange gains realized during the 2025 financial year. Lastly, financial costs have decreased.

The optimization of administrative and R&D expenses stems from the group's proactive initiatives in organizational streamlining and operational excellence. These measures reflect not only more rigorous resource allocation but also enhanced financial flexibility, allowing the group to redirect resources towards strategic growth areas. These initiatives demonstrate improved short-term profitability while also establishing a sustainable development model geared towards creating long-term value.