QingSong Health (2661) investor relations material

Executive summary

• H1 2026 revenue fell 45.4% YoY to RMB358.2m; gross profit declined 15.8% to RMB179.4m, while gross margin rose to 50.1% on a greater insurance-related revenue mix.

• Reported net loss was RMB51.4m versus net profit of RMB86.0m in H1 2025; adjusted net loss was RMB46.6m versus adjusted net profit of RMB51.2m.

Financial highlights

• Revenue decreased from RMB656.1m to RMB358.2m; cost of revenue fell 59.6% to RMB178.7m, mainly as digital marketing activity and related service costs contracted.

• Sales and marketing expenses rose 38.0% to RMB142.5m; R&D increased 50.0% to RMB53.1m, including medical knowledge resources for QSevidence.

• G&A expenses increased 28.4% to RMB41.9m, mainly due to post-listing regulatory compliance costs; listing expenses fell to nil from RMB13.1m.

• Operating cash flow was an outflow of RMB162.1m versus an inflow of RMB52.4m; net loss, weaker digital marketing receipts, QSevidence development spending and insurance customer acquisition weighed on cash generation.

Outlook and guidance

• H2 priorities include upgrading Alcare, extending generative AI applications, accelerating QSevidence commercialization and expanding enterprise digital health and integrated health services.

• Plans include increased investment in real-world studies and clinical-trial data services, plus AI-driven automation to improve operational efficiency and profitability.

• Management expects digital marketing demand to gradually recover as the regulatory environment becomes clearer and pharmaceutical customers strengthen internal governance; customer expansion is a H2 focus.