Saint Bella’s adjusted net profit jumps in first half

Maternity care provider Saint Bella Group Ltd. (2508.HK) announced on Monday it expects to report revenue of 608 million yuan ($90 million) or more for the first half of this year, up at least 35% year-on-year. It expects to report its net profit was 53.4 million yuan or higher, down at least 83.7% from about 326.9 million yuan a year earlier, while its adjusted net profit rose 54% year-on-year to 60 million yuan or more.

The company attributed the sharp drop in its net profit to a one-off gain of about 318.2 million yuan from changes in the fair value of financial instruments issued to investors in the year-ago period. The gain was a non-cash item and will no longer affect the company’s financial performance following its listing.

Among its core operations, the company said its postpartum center business remained solid, while value-added businesses, including postpartum rehabilitation care, home-visit services and health and wellness food products, recorded strong growth. It also completed its acquisition of Fu Lei Ya, a leading maternity and infant care brand in Wuhan, during the period, while improved operations and refined management helped lower its selling and administrative expense ratio.

The company’s self-developed vertical AI large model, “Dr. Bella,” has also been integrated into its in-store and home-visit services, while its AI intelligent agents began generating revenue.

Shares of Saint Bella opened flat on Tuesday and were down 4.65% at HK$3.175 by the midday break. The stock is down 21% year-to-date.

By Lee Shih Ta

To subscribe to Bamboo Works weekly free newsletter, click here