Jinxin fertility swings to significant loss amid strategic shifts, impairment charges

Jinxin Fertility Group Limited reported a net loss of RMB1,044.1 million for the six months ended June 30, 2025, a significant decline from the RMB190.3 million net profit in the same period of 2024. Revenue decreased by 10.7% to RMB1,288.6 million from RMB1,443.8 million, primarily due to an 8.3% drop in OPU cycles, an increase in IUI patients, and a 7-8% decrease in average single-cycle pricing following national healthcare adjustments. Gross profit also fell by 32.9% to RMB391.4 million, with the gross profit margin dropping to 30.4% from 40.4%.

The net loss was largely driven by one-off events, including an impairment of goodwill and certain intangible assets related to the group’s U.S. and Laos businesses, totaling RMB992.58 million. Additionally, impairment losses under the expected credit loss model amounted to RMB99.01 million, and a one-off contribution of RMB50.00 million was made to Jinjiang District Maternity and Child Health Hospital. Total assets decreased by 6.5% to RMB14,009.43 million, while total liabilities increased by 2.8% to RMB4,755.50 million.

Despite financial headwinds, the group expanded its business, recruiting five new physicians for HRC Medical in 2024 and opening a satellite center in Beverly Hills in July 2024. Overseas operations saw an 8.9% decrease in IVF treatment cycles at HRC Medical, affected by Sino-American relations and the postponed implementation of California's SB729 bill.