Sanai Health Industry Group Company Limited reported a loss of RMB26.54 million for the year ended 31 December 2025, reversing a profit of RMB3.40 million in 2024. Loss attributable to shareholders reached RMB22.04 million, translating into a basic and diluted loss per share of RMB14.41 cent.

Revenue from continuing operations edged up 0.80% year-on-year to RMB85.90 million, driven entirely by the pharmaceutical segment. Finance-leasing revenue fell to zero after most existing leases matured and no new contracts were signed during the year.

Rising raw-material costs and higher operating expenses eroded profitability: • Gross profit declined 15.00% to RMB14.33 million; gross margin narrowed to 16.69% from 19.79%. • Distribution costs rose 37.56% to RMB8.60 million, while administrative and other operating expenses increased 10.13% to RMB28.70 million, largely attributable to the consolidation of newly acquired subsidiary Beijing Hangyang. • A RMB0.77 million net loss on subsidiary disposals, combined with a RMB1.33 million impairment on an associate and increased finance costs of RMB2.82 million, further weighed on results.

Financial position remained liquid: • Cash and cash equivalents stood at RMB298.60 million. • Net current assets were RMB248.08 million and total equity RMB324.10 million. • Interest-bearing borrowings totalled RMB43.04 million; the gearing ratio (total debt/total equity) was 29.90%. • Capital commitments contracted but not provided for were RMB8.02 million, with a further RMB30.51 million authorised but not contracted.

Auditor’s qualified opinion FORVIS Mazars issued a qualified opinion, citing insufficient evidence to assess provisions related to an ongoing finance-lease litigation in Beijing. The court dispute involves potential joint liability—alongside former subsidiaries and directors—for up to RMB67.37 million in principal and associated charges. The case is currently under appeal at the Beijing High People’s Court.

Corporate actions and capital structure • A 25-for-1 share consolidation became effective on 13 August 2024, followed by a capital reduction and share sub-division effective 3 February 2025, resetting par value to HK$0.01. • Issued share capital at year-end comprised 152.90 million shares. • No dividend was declared for FY2025.

Operational update and outlook Pharmaceutical revenue grew 1.00% to RMB85.90 million, with Beijing Hangyang contributing 68.12% of segment sales. Management highlighted continued pressure on herbal-material costs and has downsized production capacity at Fujian Rui Chuang. The finance-leasing arm remains on hold amid unattractive risk-adjusted returns.

Management plans to control costs, monitor market conditions in the PRC, and explore new investment opportunities while prioritising sustainability and operational efficiency. No material acquisitions or disposals were announced after the reporting date.