Tailing Pharmaceutical (01011.HK): Expected annual net loss of approximately 25 million to 30 million yuan, a decrease of about 43.8% to 53.2% year-on-year

Tailing Medical (01011.HK) announced on February 26 that, based on a preliminary review of the group’s unaudited consolidated management accounts for the year ending December 31, 2025 (“this year”) and the current available board information, the group is expected to record a net loss attributable to owners of the company of approximately RMB 25 million to RMB 30 million this year, a significant decrease from the net loss attributable to owners of the company of about RMB 53.4 million in the previous year ending December 31, 2024 (“last year”), representing a reduction of approximately 43.8% to 53.2%. The expected reduction in loss is mainly due to the following factors: (i) a one-time non-cash fair value loss of about RMB 29.5 million recognized in the last year due to accounting reclassification related to the equity of Beijing Kangchen Biotechnology Co., Ltd., which will no longer occur this year; and (ii) a fair value gain of approximately RMB 14 million on financial assets measured at fair value through profit or loss (i.e., the aforementioned equity) recorded this year.