Fangzhou (6086) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 30.2% YoY to RMB3.53bn; net profit was RMB11.8m versus a net loss of RMB854.9m in 2024. Adjusted net profit reached RMB20.4m.

• Average MAU increased 35% to 13.7m; registered users totaled 56.4m and registered doctors exceeded 251,000. Repeat purchase rate was above 85%.

Financial highlights

• Revenue increased 30.2% to RMB3,526.2m; gross profit rose 8.4% to RMB559.4m, while operating profit was RMB13.4m versus an operating loss of RMB777.7m.

• Net profit and total comprehensive income was RMB11.8m versus a loss of RMB854.9m; basic and diluted EPS were RMB0.01 versus a loss of RMB0.88.

• Cost of sales increased 35.4% to RMB2,966.7m; overall gross margin declined to 15.9% from 19.1%, reflecting segment margin and mix changes.

• Adjusted net profit, excluding share-based transactions, listing expenses, preferred-share liability changes and FX, was RMB20.4m versus RMB17.1m; adjusted margin was 0.6% in both years.

Outlook and guidance

• 2026 strategy centers on “Medicine as a Service,” with continued investment in XS LLM and AI applications to improve user experience, care quality, demand forecasting and operating efficiency.

• Plans include expanding government social-insurance connectivity and commercial health-insurance partnerships to improve affordability and reduce patients’ out-of-pocket costs.

• Recruitment priorities include AI, digital healthcare and pharmaceutical operations; management expects working capital to cover 2026 requirements, supported by anticipated operating cash-flow improvement and supplier terms.