RICI Healthcare revenue falls 7% as hospital business struggles

RICI Healthcare Holdings Limited reported a 7.0% decrease in total revenue for the six months ended June 30, 2025, reaching RMB1,144.8m compared to RMB1,231.2m in the corresponding period of 2024. This decline was largely attributed to a 28.7% drop in revenue from the general hospital business, which fell to RMB219.7m due to external competitive pressures from expanding public hospitals. In contrast, the medical examination business saw a slight increase of 0.2% to RMB925.1m, bolstered by growth in its high-end "XMEDIC" brand.

Despite the revenue contraction, gross profit increased to RMB407.6m from RMB396.3m, with the gross profit margin rising to 35.6% from 32.2% in 2024, reflecting improved efficiency and cost control. However, distribution costs and selling expenses increased to RMB134.5m, up from RMB108.6m, due to investments in sales talent and promotional activities. Net profit for the period decreased to RMB79.7m from RMB87.1m in 2024.

As of June 30, 2025, the group's net current liabilities stood at RMB266.2m, a decrease from RMB323.3m at December 31, 2024, mainly due to reduced borrowings. Cash and cash equivalents were RMB1,028.8m. The board resolved not to declare an interim dividend for the period.