Fangzhou (6086) H1 2025 earnings summary

Executive summary

• H1 revenue rose 12.9% YoY to RMB1,493.6m; net profit was RMB12.5m versus a loss of RMB818.7m a year earlier.

• Adjusted net profit increased 16.8% YoY to RMB17.6m; adjusted net margin was 1.2% versus 1.1%.

• Registered users reached 52.8m, average MAU rose 34.4% to 11.9m, and paying-user repeat purchase rate was 85.4%.

• AI agents expanded across consultation, medical records, physician guidance and support, advancing AI-enabled chronic disease management.

Financial highlights

• Revenue increased 12.9% to RMB1,493.6m; cost of sales rose 15.9% to RMB1,225.2m, while gross profit increased 1.0% to RMB268.3m.

• Gross margin declined to 18.0% from 20.1%; net profit was RMB12.5m versus a loss of RMB818.7m, and operating profit was RMB13.3m versus a loss of RMB746.3m.

• Adjusted net profit increased 16.8% to RMB17.6m; basic and diluted EPS were RMB0.01 versus a loss per share of RMB1.27 in H1 2024.

• Administrative expenses fell 92.0% to RMB66.6m, primarily due to lower RSU expenses; selling and distribution expenses rose 11.5% to RMB190.7m.

• Operating cash flow was RMB35.8m versus RMB31.4m; cash and cash equivalents were RMB214.0m at June 30, 2025, versus RMB174.6m at December 31, 2024.

Outlook and guidance

• Priorities include extending AI-agent applications for chronic disease care, developing an AI-physician framework, and continuing technology and digital investment.

• Plans include expanding pharmaceutical and physician partnerships, targeting weight management, metabolic disorders and infectious diseases, and extending social-insurance collaborations to more regions.

• Plans include developing commercial-insurance solutions focused on chronic disease management.

• Working capital was expected to cover H2 2025 needs, supported by anticipated operating cash-flow improvement, working-capital management, supplier terms and offering proceeds.