SIPAI HEALTH (00314) has issued a positive profit forecast, expecting a net profit of 41 million to 44 million yuan in the first half of the year, achieving a turnaround from loss to profit year-on-year.

SIPAI HEALTH (00314) announced that the group expects to achieve a net profit of 41 million to 44 million yuan in the first half of 2026, compared to a net loss of approximately 81.1 million yuan in the same period of 2025. The normalized net profit is expected to be 6 million to 7 million yuan, while the same period in 2025 recorded a normalized net loss of around 12 million yuan. The announcement stated that the turnaround to profitability is primarily attributed to: (i) strong growth in the groups core businesses (namely corporate insurance services and physician research assistance); (ii) an increased proportion of higher-margin core businesses, leading to an improvement in the group's gross profit margin; (iii) a reduction in sales and administrative expenses due to the implementation of a series of quality and efficiency enhancement measures; (iv) income generated from the sale of subsidiaries in the first half of 2026, whereas there were losses from the sale of subsidiaries in 2025; and (v) a decrease in share-based compensation.