YESTAR HEALTH (02393) issued a profit warning, expecting a mid-term comprehensive net loss of no less than 450,000 yuan, turning from profit to loss year-on-year.

YESTAR HEALTH (02393) announced that compared to the group's unaudited consolidated net profit of approximately RMB 11.1 million for the six months ending June 30, 2025 (the 2025 interim period), it is expected that the group will record an unaudited consolidated net loss of no less than RMB 450,000 for the six months ending June 30, 2026 (the 2026 interim period). The expected shift from a net profit to a net loss during the 2026 interim period is mainly due to the implementation of national and provincial drug procurement programs in China, which encourage distributors and service providers to purchase relevant medical products in bulk directly from the National Healthcare Security Administration at lower competitive costs, creating downward pressure on pricing and resulting in reduced revenues from the medical product segment.