YUNKANG GROUP (02325) has announced that the Group expects to achieve a net profit in the range of RMB 3.2 million to RMB 9.8 million for the fiscal year ending December 31, 2025. This represents a significant turnaround compared to the net loss of approximately RMB 793.2 million reported for the fiscal year ending December 31, 2024.
The anticipated shift from a net loss to a net profit is primarily attributed to several key factors. During the reporting period, the Group's short-term performance faced pressure due to various influences, including centralized procurement policies, medical insurance cost controls, and intensified industry competition. In response to these market adjustments, the Group focused on enhancing operational quality as its core strategy. This involved optimizing its customer and product portfolios and deepening collaborations within medical consortia. By providing in-depth services to empower its clients, the Group achieved a steady improvement in its operational quality.
Although overall revenue for the reporting period is expected to decline compared to the previous year, the rate of decline has progressively narrowed. The business model for diagnostic testing services provided to medical consortia demonstrated significant advantages, contributing to the Group's high-quality development.
Furthermore, the Group implemented comprehensive measures to enhance operational efficiency and management quality across its entire system. Through strengthened cost control and precise resource allocation as part of its lean operations initiatives, both selling and administrative expenses were reduced, yielding notable results in cost reduction and efficiency gains.
Concurrently, the Group actively optimized its debt structure and improved capital utilization efficiency, leading to a decrease in financial costs compared to the same period last year. Additionally, the Group continued to strengthen its management of cash and accounts receivable, successfully shortening the collection cycle. Efforts to recover trade receivables from previous years resulted in the reversal of a portion of credit impairment losses that had been provisioned earlier.
Looking ahead, the Group remains committed to strengthening credit control and intensifying its collection efforts, employing multiple strategies to facilitate timely payments.
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