Recently, news of "345 million yuan in unpaid wages, with 80 employees owed salaries" has thrust Huangshi Jinxin Obstetrics and Gynecology Hospital into the public spotlight. Although it has been clarified that this hospital is not directly affiliated with the listed company "Jinxin Reproductive" but is owned by its related party "Jinxin Medical Group," this bankruptcy liquidation event nonetheless reflects the multiple risks inherent in the Jinxin Group's expansion and management.
Behind the Separation: Risks Not Truly Isolated Huangshi Jinxin Obstetrics and Gynecology Hospital has completely ceased operations as of October this year, with its entrance blocked by vehicles, phone lines cut off, and fallen leaves piled up, presenting a scene of desolation. Even though Jinxin Reproductive exited from the hospital's shareholder structure in October 2021 in an attempt to achieve business divestment, the brand's association still raises market concerns about its overall operational capability.
From the perspective of the shareholding structure, the sole shareholder of Huangshi Jinxin Hospital is Chengdu Jinxin Runyi Medical Management Co., Ltd., with the actual controlling party being Jinxin Global Medical (Hong Kong) Ltd. Despite being separated from the listed company system, the shared "Jinxin" brand means that any operational issues could still affect the listed company's reputation and market confidence.
Poor Management or Industry Chill? Located on the island in the center of the lake at the scenic area of Cihu, Huangshi Jinxin Obstetrics and Gynecology Hospital boasts a beautiful environment but is distant from the main urban area, which is likely one reason for its operational difficulties due to insufficient foot traffic. According to court announcements, the hospital's total external debt amounts to 22.6235 million yuan, including 3.45 million yuan in employee salary arrears and 500,000 yuan in operational expenses, while accounts receivable stand at only 1.92 million yuan from medical insurance settlements, indicating a clear break in its funding chain.
This is not an isolated case. In recent years, with the continuous decline in birth rates, obstetrics and gynecology hospitals have generally faced challenges of shrinking clientele and declining revenues. Jinxin Reproductive acknowledged in its 2025 semi-annual report that "adverse factors in the obstetrics sector" impacted its performance. The bankruptcy of Huangshi Hospital can be seen as a microcosm of the industry's downward cycle.
Listed Company Under Pressure, Impairment of Goodwill Leads to Major Losses Although Huangshi Hospital is not part of the listed company system, Jinxin Reproductive's own operations are also not optimistic. In the first half of 2025, the company reported revenues of 1.289 billion yuan, a year-on-year decline of 10.7%; during this period, it suffered a loss of approximately 1.044 billion yuan, turning from profit to loss. Adjusted net profits under non-International Financial Reporting Standards also saw a significant decline of 68.3%.
The company explained that the losses were primarily due to one-time factors including goodwill impairment, financial asset impairment, and investment losses. Notably, the core business of assisted reproductive services also experienced an 11.18% year-on-year decline in revenue, alongside an 8.26% decrease in the number of egg retrieval cycles, indicating a lack of growth in its main business.
Assisted Reproductive Services Incorporated into Medical Insurance: Price Discounts or Profit Squeeze? Another risk that cannot be overlooked is policy changes. With assisted reproductive services gradually being integrated into medical insurance, service prices have decreased. While this may lead to an increase in patient numbers, it has also directly squeezed gross margins. Jinxin Reproductive clearly mentioned in its report that the decline in service prices following the inclusion of assisted reproductive services into medical insurance has affected performance.
Complex Structure, Brand Linkage: Key to Risk Management According to Jinxin Medical's official website, the group operates seven medical institutions distributed across Chengdu, Luzhou, Huangshi, and other locations. This cross-regional, multi-layered holding structure can help disperse risks but also increases management difficulties and brand-related responsibilities. Should any institution face operational issues, it could easily trigger a market crisis of confidence in the overall system.
Conclusion The bankruptcy of Huangshi Jinxin Obstetrics and Gynecology Hospital not only signifies a failure of a local hospital's operations but also reveals the systemic risks faced by specialized medical groups under the dual pressures of demographic change and policy adjustments. Optimizing business structures and strengthening risk management related to affiliated transactions and brand reputation will be critical challenges that Jinxin Reproductive and its associated parties must confront in the future.