EC HEALTHCARE (02138) announced that the group anticipates the following financial performance for the six months ending September 30, 2025 (reporting period): (i) Revenue is expected to decline by no more than 10% compared to approximately HK$2.063 billion in the corresponding period ending September 30, 2024; (ii) EBITDA (earnings before interest, taxes, depreciation, and amortization) is projected to decrease by no more than 30% from around HK$248 million in the prior-year period; and (iii) Post-tax net profit is likely to fall by no more than 90% versus the HK$40.3 million recorded in the same period last year.
The board attributed the decline in net profit and EBITDA primarily to: (i) Weak local consumer sentiment, driven by Hong Kong residents increasingly seeking medical and wellness services in mainland China and a rise in outbound travel, which reduced discretionary demand for local healthcare and aesthetic services; (ii) The disposal of certain medical assets in the latter half of the previous fiscal year, which are no longer consolidated in the group’s financial statements and thus contributed no revenue during the reporting period; (iii) A less favorable service mix, with lower-margin discretionary services accounting for a higher proportion; and (iv) Reduced operational leverage due to lower revenue.
Despite these challenges, the board emphasized that the group’s overall financial position remains solid, with cash, term deposits, and liquid financial assets totaling approximately HK$1.1 billion as of the end of the reporting period.
Comments