Fangzhou (6086) H1 2026 earnings summary

Executive summary

• H1 2026 revenue rose 22.2% YoY to RMB1,824.5 million; adjusted net profit increased 6.4% to RMB18.7 million, while reported profit fell to RMB8.9 million from RMB12.5 million.

• Registered users reached 59.8 million, up 13.2% YoY; average MAU rose 23.1% to 14.7 million, and repeat purchase rate among paying users was 89.2%.

• Strategy centered on MaaS, chronic disease management and broader AI deployment using proprietary XS LLM, including commercial and enterprise applications.

Financial highlights

• Revenue was RMB1,824.5 million, up 22.2% YoY; cost of sales rose 27.0% to RMB1,555.9 million.

• Gross profit was RMB268.5 million, up 0.1%; gross margin declined to 14.7% from 18.0%, reflecting segment margin and mix changes.

• Operating profit was RMB4.9 million versus RMB13.3 million; reported profit was RMB8.9 million versus RMB12.5 million, with an RMB4.5 million income tax credit in H1 2026.

• Adjusted net profit, excluding equity-settled share-based transactions and FVPL fair-value losses, was RMB18.7 million versus RMB17.6 million; adjusted margin was 1.0% versus 1.2%.

• Operating cash flow was RMB21.1 million versus RMB35.8 million; cash and cash equivalents were RMB358.9 million at June 30, 2026, versus RMB233.5 million at Dec. 31, 2025.

Outlook and guidance

• Continue MaaS development through online follow-ups, e-prescription renewals, pharmaceutical care and post-consultation support for chronic disease patients.

• Upgrade XS LLM and AI-agent capabilities, deploying AI across physician support, patient management, medication guidance and operations; scale commercial and enterprise offerings.

• Expand pharmaceutical, technology and insurance partnerships, strengthen social insurance integrations, and develop commercial-insurer access to chronic disease services.

• 2026 capex is expected to fund property, plant, equipment and intangible assets using cash; working capital was assessed as sufficient for H2 needs.