Xunfei Healthcare Technology (2506) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 30.3% YoY to RMB298.6m; gross profit increased 27.0% to RMB153.9m, while period loss narrowed 38.5% to RMB82.3m.

• Growth came from primary and regional solutions and patient management services; hospital solutions revenue declined amid large-model updates.

• Product development advanced with Spark Medical Model X1 and V2.5, clinical deployments, hospital-specific models, AI agents and consumer health services.

Financial highlights

• Loss before tax narrowed to RMB100.1m from RMB163.3m; net loss attributable to owners was RMB74.1m versus RMB129.7m, and basic loss per share was RMB0.61 versus RMB1.14.

• Adjusted net loss was RMB66.2m versus RMB86.4m; adjusted net loss margin improved to 22.2% from 37.7%.

• Cost of sales rose 34.0% to RMB144.7m; selling expenses increased 16.7% to RMB102.1m, administrative expenses rose 6.5% to RMB47.4m, and finance costs increased 130.9% to RMB4.8m.

• Total R&D investment, including expenses and development expenditures, was RMB134.2m, down 11.8% YoY and equal to 44.9% of revenue; lower amortization contributed to the decline.

Outlook and guidance

• Product portfolio expansion and maturity are expected to support revenue growth, with gross margin anticipated to remain relatively stable.

• Priorities include sustained R&D, product-led innovation, localized hardware-software integration and GBC collaboration to expand AI healthcare applications.

• Feicheng medical-community project was under construction and expected to enter full use in Q4 2025.

• Liquidity needs are expected to be met with operating cash; planned IPO proceeds were expected to be fully used by December 2025 or December 2026, depending on allocation, subject to market conditions.