Core Insights - Kaisa Health (00876) reported a mid-year performance for 2025 with revenue of HKD 69.577 million, a year-on-year decrease of 21.4% [1] - The company recorded a loss attributable to equity holders of HKD 9.125 million, a reduction of 62.4% compared to the previous period [1] - Basic loss per share was HKD 0.18 [1] Revenue Performance - The decline in revenue is primarily attributed to the Chinese government's centralized procurement price policy, which includes setting price ceilings for dental products sold domestically, leading to a decrease in average selling prices for dental products [1] Product Development and Strategy - The company adheres to the aesthetic restoration philosophy of "minimally invasive without harming teeth," aiming to reduce patient discomfort during cosmetic dental procedures [1] - In 2019, the company launched a series of digital dental products, including Meijia veneers XS, Meijia 3D simulated zirconia, Meijia transparent aligners, and removable dentures, which have received significant recognition from overseas technicians and dentists [1] Operational Expansion - To enhance product and service delivery, the company plans to establish regional manufacturing centers in cities such as Shanghai and Chengdu this year, aiming to reduce logistics costs and better serve local customers [1] - As of June 2025, the Hejia Rehabilitation Clinic has met all performance assessment criteria set by the Shenzhen Municipal Medical Insurance Bureau for designated medical insurance institutions, successfully entering the renewal phase [1] - The Hejia Rehabilitation Clinic experienced a 15% year-on-year increase in operating revenue following team expansion during the first half of the year [1]

Core Viewpoint - Kaisa Health (00876) reported a decline in revenue and a narrowed loss for the first half of 2025, primarily due to the adverse effects of China's centralized procurement price policy on dental product pricing [1] Financial Performance - Revenue for the first half of 2025 was HKD 69.577 million, a decrease of 21.4% year-on-year [1] - Loss attributable to equity holders was HKD 9.125 million, a reduction of 62.4% year-on-year [1] - Basic loss per share was HKD 0.18 [1] Market and Product Development - The decline in revenue was mainly due to the Chinese government's price ceiling on dental products, which led to a decrease in average selling prices [1] - The company maintains a research and development focus on "minimally invasive aesthetic restoration," aiming to reduce patient discomfort during cosmetic dental procedures [1] - Kaisa Health plans to establish regional manufacturing centers in cities like Shanghai and Chengdu to lower logistics costs and enhance local service [1] Operational Updates - As of June 2025, Kaisa Rehabilitation Clinic met the periodic performance assessment criteria set by the Shenzhen Municipal Medical Insurance Bureau, successfully renewing its qualification as a designated medical insurance institution [1] - Approximately 2%-5% of institutions lost their medical insurance designation due to failing assessments [1] - The Kaisa Rehabilitation Clinic expanded its team, resulting in a 15% year-on-year increase in operating revenue [1]