Yunkang Group (2325) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell 15.5% YoY to RMB601.4m; net profit was RMB3.9m versus a RMB793.2m loss in FY2024, with operating profit also returning to positive territory.

• Cost controls, lower finance costs and a RMB214.3m reversal of impairment losses supported the turnaround; revenue pressure persisted amid market competition and healthcare cost controls.

• Medical institution alliance testing remained the largest revenue stream, rising to 58.7% of total revenue as its share increased 5.7 percentage points YoY.

Financial highlights

• Revenue was RMB601.4m, down 15.5% YoY; gross profit was RMB182.8m, down 13.4%, while gross margin increased to 30.4% from 29.6%.

• Operating income was RMB32.9m versus an operating loss of RMB752.1m; profit before tax was RMB7.0m versus a loss of RMB791.2m.

• Net profit was RMB3.9m versus a net loss of RMB793.2m; profit attributable to owners was RMB2.9m and basic and diluted EPS were RMB0.005.

• Selling expenses declined 34.4% to RMB118.2m and administrative expenses fell 29.6% to RMB186.5m; net finance costs decreased 33.6% to RMB26.0m.

• R&D spending was RMB51.9m, down slightly from RMB53.0m; R&D as a share of revenue rose to 8.6% from 7.4%.

Outlook and guidance

• Strategic priorities include continuing the “one horizontal, one vertical” approach, deepening alliance and hospital-enterprise collaboration, and expanding professional diagnostic services.

• The ZhiYun medical AI model is planned for pilot use with healthcare partners, followed by gradual rollout nationwide.

• Policy support for primary healthcare, medical institution alliances and “AI + healthcare” is expected to create opportunities for diagnostic services and intelligent clinical tools.