Spire Health will lose another 124 million yuan in 2025, with both specialty pharmacy and Huiminbao businesses shrinking by 60%, and employee optimization and severance costs totaling approximately 16 million yuan.

Ask AI · SiPai Health Specialty Drug Pharmacy business revenue cut in half—related to tighter医保 regulation?

（Image source: Visual China）

Blue Whale News March 31 (Reporter Chen Xiajuan) Recently, SiPai Health (00314.HK) released its 2025 performance report. For the full year, it achieved operating revenue of RMB 2.07B, down significantly 54.6% year over year; the attributable net loss was RMB 124 million, still not yet turned profitable but with a narrower loss; normalized net loss narrowed to RMB 48 million, showing a clear improvement compared with the previous year.

In the reporting period, SiPai Health’s main business did not change. Why did revenue drop so sharply? The reporter noticed that mainly its specialty drug pharmacy business and the惠民保业务 declined noticeably.

The specialty drug pharmacy business is still SiPai Health’s “mainstay” accounting for about 70% of business share, but revenue fell from RMB 3.98B in 2024—“cut in half”—to RMB 1.47B in 2025, a year-over-year decline of 63.1%. The gross margin of this core business is only 6%. The low-margin model also makes it difficult to contribute to profits. Last year, SiPai Health’s Harbin SiPai Pharmacy in Heilongjiang was also penalized at the maximum level of RMB 96.95 million after getting caught up in an医保 fraud and insurance fraud scandal.

Commercial insurance services account for less than 7% of total operating revenue, with full-year revenue of RMB 142 million, down 26.6% year over year. Among subdivided businesses, enterprise insurance revenue was RMB 91 million, up 32% year over year; and the惠民保业务 revenue was RMB 51 million, down sharply 59.1%. In its financial report, the company said that the decline in commercial insurance services revenue was mainly due to a restructuring of the惠民保 business segment. This business has a higher gross profit margin, reaching 65.1%.

The Doctor Research Assistance business is the only segment with positive growth. It accounts for about 20% of business share. Full-year revenue was RMB 462 million, up 16.3% year over year, with a gross margin of 28.5%.

（Image source: SiPai Health 2025 performance report）

Breaking through into high-gross-margin businesses has become the company’s urgent path to transformation. At the end of last year, reports circulated in the market that SiPai Health would disband the惠民保 team. Although the company said those rumors were untrue, there is indeed a basis based on changes in the market, and it carried out integration and optimization of resource allocation for certain business lines. (For details, see Blue Whale News’ previous report “SiPai Health clarifies that the ‘disbanding the惠民保 team’ is untrue; three years of losses totaling 2 billion; the stock price has shrunk by 90% since listing”)

The annual report data also shows that in 2025, SiPai Health conducted strategic transformation of its specialty drug pharmacy and惠民保 business segments, generating total restructuring costs of about RMB 17.90 million. This includes employee optimization and severance pay of RMB 15.90 million, of which about RMB 11.40 million came from the specialty drug pharmacy business, and about RMB 4.50 million from the惠民保 business segment; there were also other asset losses of about RMB 2.10 million, including the sale of properties, factories and equipment, termination of leases, and so on.

（Image source: SiPai Health 2025 performance report）

Meanwhile, the company is also seeking transformation breakthroughs through outbound M&A and organizational adjustments. This March, SiPai Health announced that its wholly owned subsidiary, BiXun (Shanghai) Pharmaceutical Technology Co., Ltd., will acquire 100% equity in JianYi Information Technology (Shanghai) Co., Ltd., a platform for commercial medical insurance technology and corporate employee medical health services, by purchasing the shareholders’ equity at a cash consideration of RMB 360 million. SiPai Health said in its report that the acquisition will help achieve full coverage of the company’s qikang service capabilities, accelerate the implementation of its profitability targets, and inject momentum for both business scale and profitability to improve.

In the first quarter of 2026, the company also completed core organizational upgrades and optimization of business layout, establishing three new departments: the reinsurance business department, the large commercial risk department, and the life sciences insurance department.

Since SiPai Health listed on the Hong Kong Stock Exchange in 2022, its performance has been far from satisfactory. From 2022 to 2024, the company’s operating revenue was RMB 4.12B, RMB 4.71B, and RMB 4.57B, respectively; over the same period, attributable net profits were -RMB 1.37B, -RMB 256 million, and -RMB 324 million, respectively.

The sluggish performance has also been directly reflected in the capital market. The reporter noted that since its listing, the company’s share price has been in a downward fluctuation. The closing price on the first day of listing fell from HKD 25 per share to the current HKD 2.12 per share, a stock price shrinkage of more than 90%. Its market capitalization also fell sharply from nearly HKD 20 billion to the current HKD 1.62B, losing 90% of its market cap.

（Image source: Hexun）

The reporter noticed that because many investors have been “deeply trapped,” many small and medium investors keep complaining on community platforms such as stock forums, saying bluntly, “How long do we have to stay trapped?” Perhaps SiPai Health needs to speed up its transformation so that it can give investors confidence with real results. (Blue Whale News Chen Xiajuan chenxiaojuan@lanjinger.com)