EC Healthcare projects significant profit and revenue decline

EC Healthcare projects a significant decline in its financial results for the six months ending September 30, 2025. The company expects revenue to decrease by no more than 10% from approximately HK$2,062.9 million in the prior year. Earnings Before Interests, Taxation, Depreciation-owned property, plant and equipment and Amortization (EBITDA) are forecast to fall by no more than 30% from HK$247.9 million.

The company anticipates a sharp reduction in net profit, with a projected decrease of no more than 90% from HK$40.3 million in the corresponding period last year. This downturn is primarily attributed to weak local consumption sentiment, increased spending by Hong Kong residents in Mainland China, and a rise in outbound travel, impacting domestic demand for discretionary medical and aesthetic services.

Other contributing factors include the absence of revenue from medical assets disposed of in the previous financial year, a less favorable service mix with reduced contributions from higher-margin discretionary services, and lower operating leverage due to reduced revenue. Despite the profit warning, the board believes the group's overall balance sheet remains strong, with aggregate cash, time deposits, and current financial assets expected to be approximately HK$1,100 million as of the end of the reporting period.