Xikang Cloud Hospital Holdings (9686) H2 2024 earnings summary

Executive summary

• Revenue was RMB501.5m, down 6.7% YoY; net loss narrowed 45.9% to RMB83.8m.

• Operating cash flow turned positive for the first time at RMB21.6m; Internet medical service volume grew 20.8% and home care volume grew 114.9% YoY.

• The platform connected 36,000+ medical institutions, 142,000 doctors (+9.3% YoY) and 130,000 experienced nurses (+89.2% YoY).

Financial highlights

• Gross profit fell 10.4% to RMB147.5m; gross margin eased to 29.4% from 30.6%.

• Adjusted net loss, excluding share-based compensation and interest on redeemable-rights liabilities, narrowed to RMB75.3m from RMB115.4m.

• Selling and distribution expenses fell 31.2% to RMB66.2m; R&D expenses fell 24.4% to RMB42.0m and administrative expenses fell 29.7% to RMB83.2m.

Outlook and guidance

• 2025 is positioned as a pivotal year, with priorities to expand home-based medical and nursing services, scale the city-specific cloud hospital network and improve profitability.

• Plans include broader AI and digital applications, wider service coverage, and integration of medical, nursing and health management offerings.