MedSci Healthcare (2415) investor relations material

Executive summary

• H1 revenue was RMB117.451m, down 6.2% YoY, and profit for the period was RMB10.638m, down 19.7%; physician-platform contraction outweighed growth in other solutions.

• Marketing, RWS and data/AI solutions grew as AI adoption and workflow automation supported a strategic shift toward an AI-native physician platform.

Financial highlights

• Revenue fell to RMB117.451m from RMB125.246m; cost of sales rose 17.5% to RMB56.121m, reducing gross profit 20.8% to RMB61.330m.

• Profit before tax was RMB10.441m versus RMB14.521m; profit for the period was RMB10.638m versus RMB13.239m.

• Selling and distribution expenses declined to RMB23.966m from RMB33.764m; administrative expenses fell to RMB18.212m from RMB22.618m; R&D expenses decreased to RMB14.519m from RMB19.689m.

• Impairment losses on financial and contract assets increased to RMB9.026m from RMB7.413m; other income and gains decreased to RMB15.468m from RMB20.618m.

Outlook and guidance

• H2 priorities include expanding DeepEvidence and SeekEvidence, launching AI-native data-insight products, and applying AI to market insights, physician analysis and marketing decisions.

• Plans include expanding AI services into healthcare clients’ workflows and exploring data governance, productization, compliant circulation and new data-and-AI business models, subject to security and privacy safeguards.

• Continued investment in AI algorithms and collaboration with pharmaceutical companies, medical institutions and healthcare management organizations aim to build intelligent evidence-based medicine services; Southeast Asia expansion is planned.