Hygeia Healthcare (6078) H2 2025 earnings summary

Executive summary

• Revenue declined 9.8% year-over-year to RMB4,008.8 million, with net profit dropping 73.0% to RMB161.5 million, mainly due to a RMB283.3 million goodwill impairment on Etern Group Ltd.

• Non-IFRS adjusted net profit was RMB455.5 million, down 24.4% year-over-year, reflecting core business resilience excluding one-off items.

• Free cash flow surged 407.0% to RMB466.4 million, and net cash from operating activities rose 34.4% to RMB950.0 million.

• No final dividend declared for 2025; ongoing share repurchase plan of at least RMB300 million.

Financial highlights

• Gross profit was RMB1,023.5 million, with a gross margin of 25.5%.

• Selling and administrative expenses decreased by 12.0% and 3.4% year-over-year, respectively.

• Other income increased 43.1% to RMB70.0 million, and other gains (net) rose 694.4% to RMB52.9 million.

• Interest-bearing liabilities decreased by 12.3% to RMB2,436.2 million.

• Capital expenditures fell 21.4% to RMB483.6 million.

Outlook and guidance

• Focus remains on oncology and critical care, expanding international medical services, and leveraging AI for smart healthcare.

• Plans to pursue strategic M&A opportunities and further optimize capital allocation between share repurchases and acquisitions.

• Anticipates continued growth in healthcare demand due to China’s aging population and rising incidence of chronic diseases.