Hile Bio 2025: RMB 188M Revenue Triggers *ST Warning, While Goodwill Write-down Leads to RMB 311M Net Loss

Source: Haily Bio 2025 Annual Report

In 2025, revenue reached RMB 188 million / Net Profit Attributable to Shareholders of the Parent Company recorded a loss of RMB 311 million / Stock abbreviation changed to "*ST HILE".

DentalGoodNews｜On April 30, 2026, SHANGHAI HILE BIO-TECHNOLOGY CO., LTD. (hereinafter referred to as "HILE") officially disclosed its 2025 annual report and 2026 first-quarter report. The report shows that HILE achieved annual operating revenue of RMB 188 million, a decrease of 30.69% year-on-year; the Net Profit Attributable to Shareholders of the Parent Company was a loss of RMB 311 million, a sharp decline of 281.93% year-on-year.

In the annual report, HILE pointed out that the core reason for the swing from profit to loss was the provision for a large Goodwill Impairment. Affected by macroeconomic fluctuations, industry policy adjustments, and intensified market competition, the performance of the previously acquired in-vitro diagnostics (IVD) platform Jiemen Biology and the Dental Restoration materials platform Ruisheng Biology both fell short of expectations. After impairment testing, the company recognized Goodwill Impairment on the relevant asset groups based on the evaluation results, resulting in a substantial loss recorded during the reporting period.

Source: Haily Bio 2026 First Quarter Report

On the same day the annual report was disclosed, HILE also released its 2026 first-quarter report. Data shows that in the first quarter of 2026, operating revenue was RMB 47.3887 million, a decrease of 23.31% year-on-year; Net Profit Attributable to Shareholders of the Parent Company was RMB 6.3361 million, a decrease of 41.88% year-on-year; Net Profit Attributable to Shareholders of the Parent Company after deducting Non-recurring Gains and Losses was RMB 4.4871 million, a decrease of 51.22% year-on-year. In the quarterly report, the company stated that the decline in performance was mainly due to changes in tax policies and a significant drop in product prices compared to the same period last year.

In the field of Dental Restoration materials, according to estimates by HILE's controlled subsidiary Shaanxi Ruisheng Biotechnology Co., Ltd. (hereinafter referred to as "Ruisheng Biology"), the production and sales volume of its main products, oral Bone Graft Substitute and Membrane, increased by 6.19% compared to 2024, and the comprehensive market share increased by approximately 5.36%. However, affected by the cost pressure from the national volume-based procurement policy and low-price competition from new industry entrants, the average price of Ruisheng Biology's products declined significantly. Coupled with the tightening of the implementation of previous tax incentive policies, the revenue contribution from this segment failed to grow in tandem with business volume.

In the first quarter of 2026, Ruisheng Biology's production and sales volume was roughly flat compared to the same period last year, and its comprehensive market share increased slightly year-on-year. However, product prices fell by over 65% compared to the same period last year, which is the core reason for the "shrinkage" in revenue. In the quarterly report, the company stated that market prices have gradually stabilized, and the amount of Accounts Receivable has also decreased slightly.

According to previous reports by DENTALGOODNEWS (Leading Dental Industry Media, DGN), HILE had already increased its shareholding ratio in Ruisheng Biology from 55% to 96% through a Debt-to-equity swap at the end of 2025. In the annual report, HILE emphasized that despite current profit pressure, the oral business still possesses the potential for a full industry chain service. The company has attempted to extend into the Dental Implant and downstream medical service fields through the acquisitions of Zhuoshiyou Medical and Jinboli Oral, aiming to solidify its position in the field of oral regenerative medicine.

Source: Haily Bio 2025 Annual Report

In 2025, the company's net cash flow from operating activities was RMB 58.8327 million, an increase of 26.60% compared to 2024. This was mainly attributed to the business focus after divesting the animal protection business, as well as cash flow optimization from strengthened budget management and tax refunds. HILE pointed out that with the significant reduction in the scale of goodwill, the company's subsequent financial burden will be alleviated, which is conducive to achieving a business recovery in 2026.

In terms of internal management, HILE fully implemented a digital transformation project, launching the YonSuite enterprise management platform to achieve unified group accounting and integration of business and finance. This initiative aims to optimize business processes and improve management efficiency through digital means. In the annual report, HILE stated that it will continue to deepen its core business in "human health protection" and build new competitive barriers through product innovation and service value-added in its two core tracks of oral and IVD.

Source: Haily Bio 2026 First Quarter Report

Regarding cash flow, the net cash flow from operating activities in Q1 2026 was RMB 3.6807 million, a positive turnaround compared to the RMB -5.6 million in Q1 2025, representing a year-on-year increase of 165.73%. With five of Jinboli Oral's seven clinics completing industrial and commercial registration changes and being consolidated into the financial statements in April 2026, the company expects that the revenue and profit contributions from the mergers and acquisitions will gradually become apparent starting from the second quarter. The equity change procedures for the two clinics in Liyang are still being processed, and there is uncertainty risk regarding whether the related integration matters can be successfully completed.

Source: Haily Bio Announcement on Implementing Delisting Risk Warning and Trading Suspension

Additionally, HILE issued an announcement regarding the implementation of a Delisting risk warning and a trading suspension. It stated that the stock will be suspended for one day on April 30, 2026, and will officially implement the Delisting risk warning from May 6, with the stock abbreviation changing from "HILE" to "*ST HILE". In response to the Delisting risk warning, HILE's board of directors stated that it will take active measures to seek its removal. The plan includes managing the existing business operations well, avoiding the risk of another large Goodwill Impairment, and continuing to increase investment and promote the growth of the main business scale, striving to surpass the RMB 300 million threshold in revenue. If the financial indicators for 2026 still trigger relevant financial mandatory delisting situations, the company's stock will face the risk of termination of listing.