Core Viewpoint - New Century Healthcare (01518.HK) has issued a profit warning, expecting a loss attributable to shareholders between RMB 60 million and 70 million for the six months ending June 30, 2025, marking a significant decline from a net profit of RMB 25.2 million in the same period of 2024 [1][3]. Financial Performance - The company reported a revenue decline of 9.28% to RMB 846 million in 2024, with net profit plummeting by 43.71% to RMB 47.38 million, and a decrease in gross margin from 43.63% in 2023 to 40.75% [3]. - The shift from profit to loss in the first half of 2025 is attributed to reduced demand for pediatric and obstetric services, impairment losses on goodwill and other long-term assets, and the reversal of deferred tax assets [3]. Regulatory Issues - New Century Healthcare and several directors faced disciplinary action from the Hong Kong Stock Exchange due to violations related to connected transactions, resulting in a loss of over RMB 100 million [4]. - The Hong Kong Stock Exchange has mandated the company to conduct an independent internal review, and all involved directors are required to undergo training [4]. Company Overview - New Century Healthcare is a private medical group focused on providing high-quality medical services to children and women, with its first hospital established in 2002 and officially operating since 2006 [7].