The turning point of midterm earnings is emerging, exploring the investment certainty behind FANGZHOU JIANKE (06086) "AI+H2H" ecosystem.

During the Hong Kong stock earnings season, as most listed companies have submitted their mid-term performance reports for 2025, the "double high" performance report with high quality and high growth attributes has attracted market attention. On August 27th, FANGZHOU JIANKE (06086) delivered a mid-term report for 2025 that exceeded market expectations, not only showing impressive performance in terms of profits, expansion of scale, and explosive growth in core businesses, but also anchoring the forefront trend of AI + chronic disease management, firmly grasping the pulse of industry transformation and development. In fact, the ecological advantages, industry positioning, and long-term value potential behind the performance data also reflect FANGZHOU JIANKE's strategic resilience, aligning with the development of medical AI and chronic disease management industry. Analyzing this financial report in depth can provide a clearer understanding of FANGZHOU JIANKE's innovation and breakthroughs as the "first stock in AI chronic disease management." With both revenue and profit increasing, digging deep into user value to solidify ecological barriers The core value of this mid-term performance lies in FANGZHOU JIANKE's business demonstration of "value release," which can be described by two key words: "scale growth" and "profit realization." In the first half of 2025, the company's revenue structure continued to optimize, releasing positive signals in various core financial indicators. Looking further, the company achieved breakthroughs in both "scale and profits." From the revenue end, the company's revenue reached approximately 1.494 billion yuan, a year-on-year increase of 12.9%. Against the backdrop of differentiated demand in the internet healthcare industry and slowing growth of some enterprises, this growth rate reflects the company's robust expansion capability. The profit end is even more significant, with a net profit turning from loss to approximately 12.5 million yuan, and adjusted net profit increasing by 16.8% year-on-year to approximately 17.6 million yuan, reaching a historical high. This indicates that after years of refining its business model, the company has started to enter the phase of profit realization. More noteworthy is the deep exploration of user value and accumulation of medical resources, which constitutes the "foundation" for the growth of FANGZHOU JIANKE's performance. As of the first half of 2025, the company has registered 52.8 million users, a year-on-year increase of 15.8%, continuously expanding its user base. Of particular importance is that the company's monthly active users have increased to 11.9 million, a significant 34.4% year-on-year increase, demonstrating a notable increase in user activity and validating the attractiveness of the company's services to chronic disease users. Additionally, FANGZHOU JIANKE's registered doctor base has exceeded 229,000, with nearly 60% from Grade III hospitals, ensuring the service's professionalism and becoming a core competitive advantage in attracting patients. On the user stickiness front, the repeat purchase rate of paid users is as high as 85.4%, leading in the industry, with prescription drug transactions accounting for 81.7% of core data, confirming its positioning of "focus on chronic disease management." This positioning aligns well with the needs of chronic disease patients for "long-term follow-up and continuous medication," forming a virtuous cycle of "user retention - repurchase - performance growth." Furthermore, in terms of supply chain cooperation, FANGZHOU JIANKE's "moat" is further strengthening. Up to now, the company has established partnerships with over 1,650 suppliers and more than 980 pharmaceutical companies, including industry-leading companies such as Novo Nordisk, Daiichi Sankyo, INNOVENT BIO, among others. As of June 30, 2025, the company's drug SKU has expanded to 216,000, with prescription drugs accounting for approximately 62%. While expanding medication convenience and accessibility, FANGZHOU JIANKE's robust supply chain support provides assurance for patients' "long-term medication" needs. From the data, FANGZHOU JIANKE leads in user retention rate, repurchase rate, user conversion, and payment, showing an overall upward trend. This indicates that the company now has sustainable profitability, steadily advancing towards more stable cash flow and continuous performance growth goals. Furthermore, the increase in user base, cooperative ecosystem, service enhancements, and user stickiness all lay a solid foundation for its future high-quality development. AI Empowers Business Breakthroughs, Establishes Differentiated Competitive Advantage in "Familiar Medical-Patient" Relationship In the current rapid development of AI technology, technological breakthroughs in the application of AI in the medical field are gradually deepening, bringing unprecedented changes to the healthcare industry. In 2025, the company has advanced capabilities in AI integration, completing the upgrade of "AI + H2H" (AI + Hospital To Home) technology, focusing on creating a comprehensive AI application matrix covering user services, supply chain, and content production. Looking deeper, the "familiar medical-patient" model is the "cornerstone" of FANGZHOU JIANKE's "AI + H2H" ecosystem. Unlike the one-time consultation model adopted by most platforms in the industry, the company's "familiar medical-patient" model emphasizes the establishment of long-term medical-patient relationships, leading to significantly higher loyalty, activity, and willingness to pay from its users compared to the industry average. The value of this model has also been recognized by the capital markets: Citigroup initiated coverage on FANGZHOU JIANKE with a "buy" rating and a target price of 8.5 Hong Kong dollars, with the core logic being the recognition of its "growth certainty brought by high stickiness ecosystem." The deep integration of AI technology is expected to drive FANGZHOU JIANKE's "familiar medical-patient" model to truly achieve "efficiency enhancement" and "value deepening." Based on the latest developments, FANGZHOU JIANKE has deployed multiple key AI solutions by expanding AI integration on the chronic disease management platform. For example, in the first half of 2025, the company launched the "AI Electronic Medical Record (EMR) Intelligent Agent" and the "AI Pre-consultation Intelligent Agent," enabling 24/7 intelligent pre-consultation and medical record retrieval and setup. This system uses large language models to provide intelligent follow-up questions and organize patient symptoms, medical history, and data for doctors, enhancing diagnostic and treatment efficiency. Additionally, FANGZHOU JIANKE has deployed the "AI Referral Intelligent Agent" to assist patients in selecting doctors and matching departments, and introduced the "AI Doctor Assistant" to support doctors in diagnosis and treatment, alongside an upgraded "AI Customer Service Assistant" to better support patients in medication management throughout the entire process. This system helps with prescription consultations, medication reminders, and timely renewals, improving patient compliance. By integrating AI tools on the platform, the company has built an innovative business model that promotes continuous improvement in doctor efficiency and full lifecycle management of patients. It is evident that FANGZHOU JIANKE's strategic layout of the "AI + H2H" ecosystem is expected to become a key factor for future growth. This will give the company a significant first-mover advantage and long-term characteristic, with difficult-to-replicate "ecosystem + technology" dual barriers: on one hand, the user stickiness of the "familiar medical-patient" model requires long-term accumulation and nurturing, similar to the phenomenon seen in the "POP MART" blind box industry, where newcomers find it challenging to break through once a loyal, active, and willing-to-pay user base is established. On the other hand, the deep integration of AI technology with the medical scenario requires continuous research and development investment and scenario polishing, which cannot be achieved in the short term. FANGZHOU JIANKE can embed itself in the core operational processes of medical institutions during this process, becoming a key partner in improving their management efficiency and medical quality, securing stable and reliable recurring income. Policy and Demand Dual Drive, Value Realization of AI + Chronic Disease Management Leader Expected From an industry perspective, the "AI + Medical" track where FANGZHOU JIANKE operates is entering a golden development period. The healthcare industry is undergoing intelligentization upgrades, with AI technology rapidly penetrating various areas such as intelligent consultation, medical record management, and medical insurance risk control. The industry is experiencing a "dual-wheel drive" from policy and market perspectives. From a policy level, in recent years, national policies have been continuously promoting the application of AI in medical scenarios, emphasizing the use of artificial intelligence technology to enhance medical service capabilities, providing a good development environment for the industry. From a market demand perspective, as the aging population worsens, the scale of chronic disease patients in China continues to expand, yet there is still a supply gap for "professional, efficient, and accessible chronic disease management services." Currently, the Chinese chronic disease management market faces multiple challenges, including low levels of digitization, shortage of grassroots medical resources, and repeated visits at hospitals. Under traditional chronic disease management models, due to inadequate information technology, patient health data is difficult to integrate effectively, limiting the continuity and accuracy of disease management. Additionally, doctors at grassroots medical institutions are relatively weak in professional knowledge, diagnostic tools, and patient management capabilities, making it challenging to provide efficient and standardized chronic disease management services, affecting patient trust in grassroots medical institutions. Patients often need to visit hospitals frequently for prescription updates or consultation on common health issues during the chronic disease management process, further adding pressure to medical resources. The introduction of artificial intelligence technology enables chronic disease management to achieve intelligent upgrades in diagnosis, treatment recommendations, management, and prevention. For example, AI can predict chronic disease risks based on patient data, enabling early intervention and enhancing the effectiveness and efficiency of chronic disease management. According to Frost & Sullivan's data, the scale of China's digital chronic disease management market has grown from 113.7 billion yuan in 2019 to 464.5 billion yuan in 2023, with a compound annual growth rate of 42.2%. It is expected that by 2033, the market size will further increase to 2,471.2 billion yuan, with a compound annual growth rate of 18.2% from 2023 to 2033. FANGZHOU JIANKE's AI-driven chronic disease management solutions, connecting both ends of the medical-patient spectrum, combined with artificial intelligence and innovative technology to assist doctors in devising personalized chronic disease management plans, increase the precision and personalization of chronic disease management. The company will further expand cooperation with social security institutions and insurance companies, adopting the concept of "full-cycle health security" covering the entire patient medical process, demonstrating high growth potential, high user stickiness, and a clear path to profitability. Looking ahead, as the country continues to push forward with the digitization of primary healthcare and the demand for chronic disease management grows, FANGZHOU JIANKE's chronic disease management solutions are expected to be promoted in more regions, continuously driving the intelligent upgrade of chronic disease management models at grassroots medical institutions, with broad and profound business prospects. In conclusion, FANGZHOU JIANKE's performance in the first half of 2025 is not just about the "growth of revenue and profit," but also validates the effectiveness of the "AI + H2H" ecosystem: the company's profit inflection point is evident, its business model barriers are solid, its user base is strong, and it deeply benefits from the industry dividends of "medical AI + chronic disease management." From the perspective of the capital market, FANGZHOU JIANKE, as a highly promising AI + chronic disease management leader, has a solid fundamental performance and long-term growth potential. However, the current stock price does not fully reflect the company's actual value and growth prospects, indicating significant undervaluation. Based on the closing price of 3.85 Hong Kong dollars on August 28th and Citigroup's target price of 8.5 Hong Kong dollars, FANGZHOU JIANKE should have at least a 120%+ upside potential from the current price. Furthermore, with the further implementation of AI technology in chronic disease management scenarios and the continuous release of user demand, it is highly likely that the company will achieve substantial breakthroughs in revenue and long-term growth potential, providing strong support for its business value and performance. Looking to the future, as a long-term value leader in the industry, FANGZHOU JIANKE will gradually be recognized by the capital markets, becoming a high-quality target in the Hong Kong stock market with both growth and value attributes, deserving long-term investor attention.