Xikang Cloud Hospital Holdings (9686) H2 2025 earnings summary

Executive summary

• Revenue fell 7.4% YoY to RMB464.1m; net loss narrowed 53.9% to RMB38.6m and adjusted net loss fell 74.8% to RMB19.0m.

• Strategy shifted from scale expansion toward quality and value realization, focusing on home medical and nursing services, AI-enabled operations and ecosystem growth.

• Operating cash flow remained positive at RMB40.5m, up 88% YoY, supporting a stronger operating foundation.

Financial highlights

• Gross profit decreased 14.1% to RMB126.7m; gross margin contracted 2.1 percentage points to 27.3%.

• Cost of sales fell 4.7% to RMB337.4m; selling and R&D expenses declined 11.2% and 22.2%, while administrative expenses rose 12.7%.

• Loss before tax was RMB32.5m; income tax expense was RMB6.1m versus a tax credit of RMB0.1m in 2024.

• Basic and diluted loss per share improved to RMB0.05 from RMB0.10.

Outlook and guidance

• Priorities include replicating standardized city platforms in the Yangtze River Delta, Pearl River Delta and Beijing-Tianjin-Hebei regions, with continued expansion of at-home services.

• Plans emphasize deeper AI and big-data integration across prevention, treatment and rehabilitation, plus higher-value services, products and ecosystem partnerships.

• Industry opportunity is supported by aging demographics, primary-care policy initiatives, AI adoption and rising demand for home-based care; no numerical financial guidance was stated.