Wanjia Group Holdings Limited (401) reported that an indirect non-wholly owned subsidiary, Wuhua Yongke Kidney Hemodialysis Company Limited, received a notice dated 23 October 2025 from Wuhua County Medical Insurance Management Centre. According to the announcement, the notice cited deviations in medicine prescription practices in a hemodialysis treatment center, resulting in non-compliance with the relevant regulations and service agreements.

Under the corrective measures laid out by the authority, the subsidiary’s legal representative and management must attend interviews and address the non-compliance. Additionally, the existing Insurance Service Agreement with Wuhua County Medical Insurance Management Centre will be suspended for 61 days starting 1 November 2025. During this period, the hemodialysis center will continue operating but will only provide services not covered by the agreement. Existing hemodialysis patients will be referred to other centers or nearby hospitals.

Management stated that the operation of the center during the suspension is not expected to create a significant adverse impact on the Group’s financial position or daily operations. The Group also confirmed that similar non-compliances were not found in its other hemodialysis centers. The company plans to perform a comprehensive internal control review and deploy additional staff to ensure adherence to applicable regulations.