MedSci Healthcare (2415) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 13.2% YoY to RMB125.246m; gross profit increased 14.1% to RMB77.479m and profit reached RMB13.239m, versus RMB0.248m in H1 2024.

• Precision marketing and RWS grew while physician platform revenue declined; data and AI solutions generated RMB5.6m and emerged as a new growth driver.

Financial highlights

• Cost of sales rose 11.8% to RMB47.767m; gross margin improved to 61.9% from 61.4%.

• Other income and gains increased to RMB20.6m from RMB18.9m, primarily reflecting fair-value changes and government grants.

• Selling and distribution expenses declined 10.8% to RMB33.8m; administrative expenses fell 36.9% to RMB22.6m, partly due to no comparable new equity incentive expense.

• R&D expenses rose 63.8% to RMB19.7m as AI resources increased; impairment losses on financial and contract assets rose to RMB7.4m from RMB0.5m.

• Profit before tax was RMB14.5m versus a RMB0.2m loss; net profit margin rose to 10.6% from 0.2%.

Outlook and guidance

• Expand AI across internal operations and external services, integrating solutions to improve service quality, delivery speed, efficiency and standardization.

• The Digital Intelligence Empowerment Center completed internal testing and was expected to launch commercially in H2 2025; seed customers and use cases support expansion.

• Develop Vietnam from the Singapore Southeast Asian headquarters and support Chinese pharmaceutical companies’ international expansion.

• Continue developing precision omni-channel marketing, real-world studies and full-chain services for innovative drugs.