HONLIV HEALTH (09906) announced that the Group expects to record a net loss attributable to owners of the Company not exceeding RMB 2 million for the six months ended June 30, 2025, compared to a net profit attributable to owners of the Company of approximately RMB 20 million for the six months ended June 30, 2024.

The Board believes that the expected turnaround from profit to loss is primarily due to reduced revenue resulting from decreased demand for inpatient medical services, and based on the settlement results of the 2024 annual public medical insurance plan completed in May 2025, where the actual settlement rates were lower than the estimated settlement rates adopted in the consolidated financial statements for the year ended December 31, 2024. This difference led to a reduction in inpatient service revenue for the current period, and consequently resulted in further downward adjustment of the estimated settlement rates for inpatient services covered by the plan for the first half of 2025.