Fangzhou (6086) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 11.2% YoY to RMB2.707bn; adjusted net profit increased 139% to RMB17.1m, while reported net loss widened to RMB854.9m, mainly due to RSU share-based compensation.

• Jianke Platform reached 49.2m registered users and 10.1m average MAUs, up 20% YoY; paying-user repeat purchase rate was 84.7%.

Financial highlights

• Revenue increased from RMB2.434bn in 2023 to RMB2.707bn in 2024; gross profit rose 5.9% to RMB515.9m.

• Operating loss was RMB777.7m versus RMB51.9m; net loss was RMB854.9m versus RMB196.8m.

• Adjusted net profit was RMB17.1m versus RMB7.2m; adjusted net profit margin increased to 0.6% from 0.3%.

• Selling and distribution expenses rose 3.5% to RMB355.8m, but fell to 13.1% of revenue from 14.1%; administrative expenses included RMB733.0m of RSU compensation.

• Basic and diluted loss per share was RMB0.88 versus RMB0.35.

Outlook and guidance

• 2025 priorities include expanding AI-enabled physician support, data analytics and patient education; improving physician engagement and patient experience; and optimizing supply chain and product offerings.

• Planned technology work includes AI-assisted diagnosis, stronger system stability, improved search recommendations and continued upgrades to WeChat mini programs.

• Directors expect sufficient working capital for 2025, supported by anticipated improvement in operating cash flow, working capital management, supplier credit terms and IPO proceeds.