Sichuan Jinxin Reproductive Medical Investment Management Co., Ltd. (Jinxin Reproductive) recorded a net loss of 1.04 billion yuan (RMB) in the first half of this year, compared to a profit of 190 million yuan in the same period last year, marking a turnaround from profit to loss. Jinxin Reproductive attributed this shift to a decrease in the birth rate among mainland Chinese, leading to a drop of approximately 24% in traditional deliveries and consequently reducing obstetrics and related income.
In the performance announcement for the six months ending on June 30, 2025, Jinxin Reproductive revealed that the company’s revenue for the first half of the year was 1.288 billion yuan, a 10.7% decrease compared to the same period last year when it was 1.443 billion yuan. The net loss was 1.04 billion yuan, as opposed to a profit of 190 million yuan in the previous year. Adjusted net profit under non-international financial reporting standards was approximately 82.3 million yuan, a 68.3% decrease compared to 259 million yuan in the same period last year. As of the end of June 2025, the basic loss per share for the company was 0.39 yuan, while it was a profit of 0.03 yuan per share in the same period last year.
In explaining the significant decline in performance, Jinxin Reproductive cited several factors. Firstly, the OPU (ovum pick-up) cycle decreased by about 8.3%, with an average single-cycle price dropping by 7% to 8% after medical insurance adjustments, causing a reduction in ARS (Acute Radiation Syndrome) income. Secondly, the decrease in domestic fertility desires resulted in a 24% decline in traditional deliveries, leading to a decrease in obstetrics and related income. Thirdly, the company’s expenses in related fields increased.
Sichuan Jinxin Reproductive Medical Investment Management Co., Ltd. was established in September 2016 and primarily engages in auxiliary reproductive medical services and medical investment management. The company owns medical institutions such as Chengdu Xinnuo Obstetrics and Gynecology Hospital, Shenzhen Zhongshan Urology Hospital, and the American HRC Fertility, covering the entire process of infertility treatment services, with a focus on reproductive medicine, maternal and child health, mental specialties, and elderly care and rehabilitation.
Regarding the decline in net profit for Jinxin Reproductive, a financial writer in China, “Kanjian Finance”, believes that the fall in Jinxin Reproductive’s performance reflects the current state of the marriage and relationship market. This downturn not only affects the reproductive sector but also sees varying degrees of decline in baby products, postpartum care centers, and even the cosmetics market. Particularly concerning are the postpartum care centers, with the Hong Kong-listed company Aide Palace’s market value currently only at 250 million Hong Kong dollars, facing challenges even in financial disclosures.
Following the release of Jinxin Reproductive’s financial report, CICC International issued a research report stating that the company’s gross profit margin in the first half of the year declined by 10 percentage points to 30.4%. Excluding impairment, non-recurring, or non-cash items, the adjusted net profit for the first half was approximately 82 million yuan, a 68% decrease year-on-year. Moreover, the company’s revenue forecast for 2025 to 2027 was revised downward by 17% to 18%, with the adjusted net profit forecast reduced by around 50%, leading to a downgrade to a “Neutral” rating.
A research report by Lyon pointed out a downward revision in revenue and profit forecasts for Jinxin Reproductive for the years 2025 to 2027 by 12% to 20% and 27% to 31%, respectively, with an anticipated net loss in 2025.
“Kanjian Finance” believes that in the field of reproductive health, the recovery of performance hinges on the overall market environment improving. Considering the changes in the marriage and relationship market, the return to growth in Jinxin Reproductive’s performance requires continued observation.