AIFU (AIFU) Q2 2025 earnings summary

Executive summary

• Streamlined operations by divesting non-core businesses and closing underperforming outlets to enhance efficiency and discipline.

• Reinforced leadership team and improved financial flexibility through strategic capital initiatives.

• Disposed of entire 44.6% stake in Fanhua Insurance Surveyors & Loss Adjustors, leading to deconsolidation of the claims adjusting segment, now reported as discontinued operations.

Financial highlights

• Total net revenues fell 67.0% year-over-year to RMB297.4 million (US$41.5 million) for H1 2025.

• Gross profit decreased 55.7% year-over-year to RMB154.9 million (US$21.6 million).

• Operating loss of RMB7.8 million (US$1.1 million) versus operating income of RMB52.2 million in H1 2024.

• Net loss attributable to shareholders was RMB465.7 million (US$65.0 million), compared to net income of RMB6.6 million in H1 2024.

• Basic and diluted net loss per share from continuing operations were RMB85.41 (US$11.92), compared to net income per share of RMB1.82 in H1 2024.

Segment performance

• Life insurance business net revenues dropped 67.7% year-over-year to RMB267.9 million, with gross margin rising to 52.8% from 39.1%.

• Non-life insurance business net revenues declined 59.1% year-over-year to RMB29.6 million, with gross margin up to 45.5% from 36.0%.

• Life insurance accounted for 90.1% of total net revenues; non-life insurance for 9.9%.