Core Viewpoint - New Century Healthcare (01518.HK) reported a significant decline in revenue and incurred losses for the six months ending June 30, 2025, primarily due to reduced demand for pediatric and obstetric services [1] Financial Performance - Revenue for the period was RMB 305 million, representing a year-on-year decrease of 26.8% [1] - The loss attributable to the company's owners was RMB 65.234 million, compared to a profit of RMB 25.193 million in the same period last year [1] - Basic loss per share was RMB 0.14 [1] Loss Drivers - The company recorded a pre-tax loss of RMB 41.1 million, contrasting with a pre-tax profit of RMB 72.2 million in the previous year [1] - The decline in revenue was mainly attributed to a decrease in demand for pediatric and obstetric services, resulting in a revenue drop of RMB 111.5 million [1] - Additionally, the company faced impairment losses of RMB 12.5 million related to goodwill and RMB 21.2 million related to property, plant, and equipment [1]

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].

Core Viewpoint - New Century Healthcare (01518) anticipates a significant shift from profit to loss for the six months ending June 30, 2025, projecting a loss attributable to shareholders between RMB 60 million and 70 million, compared to a profit of approximately RMB 25.2 million in the same period of 2024 [1] Group 1: Financial Performance - The company expects a loss attributable to shareholders of between RMB 60 million and 70 million for the upcoming six-month period [1] - In contrast, the company reported a profit of approximately RMB 25.2 million for the same period in 2024 [1] Group 2: Reasons for Performance Change - The board attributes the expected loss primarily to a decrease in demand for pediatric and obstetric services, leading to reduced revenue [1] - Additional factors contributing to the loss include impairment losses on certain goodwill and other long-term assets [1] - The reversal of deferred tax assets is also cited as a reason for the anticipated financial downturn [1]

Core Viewpoint - New Century Healthcare (01518) anticipates a significant loss for the six months ending June 30, 2025, with expected losses attributable to shareholders ranging between RMB 60 million to 70 million, a stark contrast to a profit of approximately RMB 25.2 million in the same period of 2024 [1] Summary by Relevant Categories Financial Performance - The company expects to report a loss of RMB 60 million to 70 million for the upcoming six-month period, compared to a profit of RMB 25.2 million in the previous year [1] Factors Influencing Performance - The anticipated shift from profit to loss is primarily due to a decrease in demand for pediatric and obstetric services, leading to reduced revenue [1] - Additional contributing factors include impairment losses on certain goodwill and other long-term assets, as well as the reversal of deferred tax assets [1]