AIFU (AIFU) investor relations material

Executive summary

• Total net revenues declined 58.2% year-over-year to RMB556.6 million (US$79.6 million) in 2025, driven by a sharp drop in life insurance commissions and the divestiture of non-core businesses.

• Operating loss narrowed to RMB39.1 million (US$5.6 million) in 2025 from RMB447.1 million in 2024, mainly due to cost reductions and the absence of large impairment charges.

• Net loss attributable to shareholders was RMB2,275.4 million (US$325.4 million) in 2025, compared to net income of RMB455.0 million in 2024, primarily due to significant credit loss and asset impairment provisions.

• The company completed major restructuring, exiting the claims adjusting and online insurance distribution businesses, and focused on core insurance agency operations.

Financial highlights

• Life insurance business accounted for 92.6% of net revenues in 2025, with net revenues down 56.5% year-over-year to RMB515.6 million.

• Non-life insurance business contributed 7.4% of net revenues, down 71.8% year-over-year to RMB41.0 million.

• Operating costs and expenses decreased 66.5% to RMB595.6 million (US$85.2 million) in 2025, reflecting lower commissions and cost-saving initiatives.

• Provision for credit losses surged to RMB1,560.1 million (US$223.1 million), and impairment loss on financial assets was RMB610.6 million (US$87.3 million).

• Cash and cash equivalents at year-end were RMB31.1 million (US$4.4 million), with net cash used in operating activities of RMB16.3 million (US$2.3 million).

Outlook and guidance

• Management expects life insurance to remain the primary revenue driver, with a focus on recruiting and training elite agents and enhancing digital platforms.

• The company anticipates stable operating costs as a percentage of revenues and plans to pursue selective acquisitions funded mainly by stock and some cash.

• No cash dividends are planned in the foreseeable future; earnings will be retained for business operations and expansion.