Ligao Health Life (02370) Fa Yingxi expects net profit of no more than 2 million yuan in the medium term to turn a year-on-year loss into a profit

According to the Zhitong Finance App, Ligao Health Life (02370) announced that it is expected that the Group will record a net profit of no more than RMB 2 million for the six months ending June 30, 2026, while a net loss of approximately RMB 800,000 for the six months ending June 30, 2025. The decrease in net profit is mainly due to the following reasons:

The shift from net loss to net profit was mainly due to a sharp reduction in impairment loss provisions on trade accounts receivable from third parties and related parties during the six-month period ending June 30, 2026, partially offset by reduced revenue from the Group's overall revenue and reduced revenue from value-added services provided to non-owners (particularly to Ligao Real Estate Group Limited (“Ligao Real Estate”), the controlling shareholder of the company whose shares are listed on the Stock Exchange (stock code: 1622)) (stock code: 1622)) (due to a reduction in the number of projects delivered by Ligao Real Estate).