Xunfei Healthcare Technology (2506) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 32.0% YoY to RMB734.0m; gross profit grew 28.4% to RMB404.1m, while net loss narrowed 10.8% to RMB137.6m.

• Growth came mainly from hospital services, regional healthcare solutions and patient services; PHC services revenue was broadly stable.

• Medical LLM launches and expanding institutional deployment strengthened the product portfolio; HK listing in December raised net proceeds of HK$507.1m.

Financial highlights

• Revenue RMB734.0m, up 32.0% YoY; gross profit RMB404.1m, up 28.4%; loss before tax RMB172.0m versus RMB186.9m in FY2023.

• Net loss RMB137.6m, down 10.8% YoY; loss attributable to owners RMB132.6m versus RMB144.8m; basic loss per share RMB1.16 versus RMB1.30.

• Adjusted net loss, excluding equity-settled share-based payments and listing expenses, was RMB44.8m versus RMB57.0m; adjusted net loss margin improved to 6.1% from 10.2%.

• Total R&D investment, including development expenditures, was RMB296.8m, equal to 40.4% of revenue; core-technology investment was RMB82.0m, up 13.2% YoY.

Outlook and guidance

• Plans include continued product iteration, higher R&D investment, broader geographic and customer reach, stronger healthcare AI infrastructure, and exploration of new commercialization opportunities.

• Management expects upgraded hospital products to support revenue growth and gross-profit improvement as they mature beyond the early marketing phase.

• The Xiaoyi app generated no revenue in FY2024; plans include exploring business models that incorporate professional medical services.