Honliv Healthcare reports significant loss in first half of 2025

Honliv Healthcare Management Group Company Limited announced a net loss of RMB673,000 for the six months ended June 30, 2025, a significant reversal from the RMB20,042,000 profit reported in the same period of 2024. This downturn was driven by a 16.5% decrease in consolidated revenue, which fell to RMB346,820,000 from RMB415,178,000 year-on-year. Gross profit also declined by 36.1% to RMB45,801,000, and the gross profit margin dropped from 17.3% to 13.2%. Basic and diluted loss per share was RMB(0.00), compared to earnings per share of RMB0.04 in 2024.

The decrease in revenue was primarily attributed to a 21.9% reduction in inpatient visits (to 22,811) and a 4.2% decrease in outpatient visits (to 717,563). The average cost per inpatient visit also decreased by 18.9% to RMB5,269.5. The company cited social factors, new medical reform policies, and intense regional hospital competition, including the impact of DRG/DIP payment reforms, as key contributors to the decline. Operating profit plummeted by 89.0% from RMB31,833,000 in 2024 to RMB3,489,000 in 2025.

Despite operational challenges, the company’s net cash flow from operating activities increased to RMB80,653,000 from RMB57,341,000, mainly due to the settlement of receivables from the medical insurance bureau. Total assets stood at RMB894,729,000 as of June 30, 2025, down from RMB974,003,000 at the end of 2024. The liability-to-asset ratio improved to 37.3% from 40.6%. The board did not recommend an interim dividend.