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].

Group 1 - The company expects to record a profit of no less than RMB 6 million for the six months ending June 30, 2025, compared to a loss of approximately RMB 57.28 million for the same period in 2024 [1] - The anticipated loss in 2024 is primarily due to changes in the redemption liability value from the termination of the priority rights of convertible redeemable preferred shares and expenses incurred during the listing preparation [1] - Despite the expected profit, the company forecasts a revenue decrease of approximately 15% to 18% for the six months ending June 30, 2025, compared to the same period in 2024 [1] Group 2 - The board believes the expected decrease in revenue and gross profit is mainly due to a reduction in content service revenue, as some clients have shifted to direct marketing strategies, reducing reliance on Real World Evidence (RWS) support services [2] - Increased competition in the generic drug industry has led to a shift of resources towards commercialization, resulting in budget cuts for RWS services from some clients [2] - The decline in value-added medical services revenue is attributed to the expiration of several sales agency agreements in 2025 and ongoing negotiations for new agreements, along with a proactive adjustment in service structure and classification [2] - A decrease in digital marketing service revenue is primarily due to the economic downturn, prompting some clients to reduce advertising and marketing expenditures [2]