REPUBLIC HC Issues Profit Warning, Anticipates Widening Net Loss in FY2025

Stock News
03/23

REPUBLIC HC (08357) has announced that the group expects its net loss for the fiscal year ending December 31, 2025, to increase significantly by approximately S$3.7 million compared to the same period in 2024. The rise in net loss attributable to shareholders is primarily due to the combined impact of the following factors: 1. Decreased Revenue: Intensified market competition led to a decline in the group's revenue. The entry of new participants and aggressive expansion by existing competitors have substantially increased competitive pressures. Many of these players have ramped up marketing efforts and launched new service offerings, which has diverted some of the group's existing patient base. 2. Macroeconomic Pressures: Changes in tariffs and broader economic uncertainties have made patients more price-sensitive, further impacting the group's revenue. 3. Regulatory Developments: Recent amendments to healthcare regulations have increased the group's compliance and operational burdens, resulting in a decline in overall financial performance. 4. Increased Operating Expenses: (a) The group incurred exchange losses due to significant depreciation of the US dollar and Hong Kong dollar against the Singapore dollar, the group's functional currency. (b) Higher operating costs were generated by the group's educational business in the Philippines and the expansion of its healthcare operations in the Chinese market. These initiatives, which were not implemented in the previous year, are currently in early investment and development stages. As they have not yet contributed significantly to revenue, the associated upfront costs have also contributed to the group's loss during the period.

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