Sinohealth Technology Holdings (2361) H1 2025 earnings summary

Executive summary

• H1 revenue was RMB147.925m, down 7.3% YoY, amid strategic restructuring and a shift toward post-examination health management.

• Net profit fell 42.1% to RMB24.511m; signed contracts scheduled for 2025 delivery rose 11.0% to RMB417.5m.

• Client count increased 11.0% YoY to 965 as AI-led expansion continued across healthcare scenarios.

Financial highlights

• Gross profit declined 7.5% to RMB82.102m; gross margin eased 0.2 percentage points to 55.5%.

• Cost of sales fell 7.0% to RMB65.823m; R&D expense rose 14.4% to RMB33.030m, focused on AI, data, healthcare and agent-platform development.

• Profit before tax decreased 38.5% to RMB26.155m; other income and gains fell 44.0% to RMB13.145m amid lower interest income and grants, and FX losses versus gains a year earlier.

• Basic and diluted EPS was RMB0.06, versus RMB0.10 in H1 2024.

Outlook and guidance

• Contracts scheduled for 2025 delivery totaled RMB417.5m, up 11.0%; in-hospital contracts reached RMB70.7m, up 44.0%.

• Priorities include scaling healthcare agents across pharmacy, commercial and health-management settings and developing agents for additional scenarios.

• Investment in AI talent, computing infrastructure and products is intended to support future growth and commercialization; funding expected from balances, operating cash flow and Global Offering proceeds.