Core Viewpoint - The company, Health Road (02587.HK), anticipates a profit of no less than RMB 6 million for the six months ending June 30, 2025, contrasting with a loss of approximately RMB 57.28 million for the same period in 2024, primarily due to changes in redeemable preference shares and listing expenses [1][2]. Financial Performance Summary - The expected revenue for the six months ending June 30, 2025, is projected to decrease by about 15% to 18% compared to the same period in 2024 [1]. - The gross profit for the six months ending June 30, 2025, is expected to decline by approximately 8% to 12% from the gross profit of RMB 183.66 million recorded for the six months ending June 30, 2024 [1]. Reasons for Revenue and Gross Profit Decline - The decrease in content service revenue is attributed to clients shifting to direct marketing strategies, reducing reliance on Real World Evidence (RWS) support services, and increased competition in the generic drug industry leading to budget cuts for RWS services [2]. - The decline in value-added medical service revenue is mainly due to the expiration of several sales agency agreements in 2025, ongoing negotiations for new agreements, and a proactive adjustment in service structure and classification [2]. - The reduction in digital marketing service revenue is linked to economic downturns prompting clients to cut advertising and marketing expenditures [2]. Company Overview - Health Road Co., Ltd. operates as a digital health service platform [3].

Company Overview - Health Road Holdings Limited operates a digital health service platform in China and is the fourth largest digital health service platform by registered personal users as of December 31, 2023 [2] - The company is also the fifth largest digital health service platform by revenue for the year 2023 [2] - Since 2001, the company has provided health services to individual users on its digital platform and expanded to offer enterprise services and digital marketing since 2015 [2] Financial Performance - As of December 31, 2024, the company reported total revenue of 1.201 billion yuan, a year-on-year decrease of 3.51% [1] - The net profit attributable to shareholders was -268 million yuan, an increase of 13.42% year-on-year [1] - The gross profit margin stood at 30.47%, with a debt-to-asset ratio of 59.82% [1] Market Performance - As of July 14, the stock price of Health Road was 8.77 HKD per share, reflecting a 13.6% increase with a trading volume of 216 million shares and a turnover of 1.831 billion HKD [1] - Over the past month, the stock has experienced a cumulative decline of 86.59%, and a year-to-date decline of 40.98%, underperforming the Hang Seng Index by 20.34% [1] Industry Valuation - The average price-to-earnings (P/E) ratio for the healthcare equipment and services industry is -2.89 times, with a median of 1.17 times [1] - Health Road's P/E ratio is -23.37 times, ranking 68th in the industry [1] - Other companies in the industry have P/E ratios such as Giant Star Medical Holdings at 0.28 times, Jingjiu Health at 0.38 times, and others ranging from 1.96 to 5.45 times [1] Analyst Ratings - Liao Asset Management has given a "Buy" rating for Health Road, with a target price of 68.5 HKD [1]