As Artificial Intelligence empowers the healthcare industry with unprecedented depth, AI health applications are no longer confined to one-off online consultations. They are evolving towards continuous, full-cycle health management. For patients with chronic conditions requiring long-term medical intervention, the value of AI is particularly pronounced—it can manage post-diagnosis follow-ups, medication reminders, and health monitoring, transforming healthcare from an infrequent "treatment-seeking" activity into a "long-term companion" integrated into daily life. As a leader in this trend, the core competitiveness of FANGZHOU JIANKE (06086), a leader in "AI+chronic disease services," is rooted in building a full-cycle chronic disease service loop centered on a "trust-based, familiar doctor-patient relationship." This model, which deeply integrates professional service with emotional support, not only precisely addresses patients' underlying needs but also drives steady performance growth through exceptionally high user loyalty.
On March 19th, FANGZHOU JIANKE disclosed its 2025 financial report, revealing a milestone achievement for the past year: the company achieved its first-ever full profitability under International Financial Reporting Standards (IFRS). This milestone validates its business model and fully demonstrates its genuine self-sustaining capability. With the confirmation of this profitability inflection point, a reassessment of the company's value is quietly underway. For market investors, a crucial question has emerged: has the company's true value been underestimated historically, and how should the market re-evaluate its valuation logic with a fresh perspective?
The profitability inflection point has arrived. How should one interpret the commercial value of the "familiar doctor-patient relationship"? FANGZHOU JIANKE's core competitiveness is deeply embedded in its unique business model: a chronic disease service system built upon a "familiar doctor-patient relationship" underpinned by trust. Unlike the prevalent industry models of "one-off consultations" or "random matching," FANGZHOU JIANKE's "AI+H2H (Hospital to Home)" model begins with a patient's initial offline consultation. By establishing a familiar relationship with a doctor, it enables long-term management tracking, professional diagnosis, and continuous accumulation of medical data, truly covering the patient's entire disease management cycle from within the hospital to outside.
In the chronic disease service arena, FANGZHOU JIANKE has accurately identified users' deep-seated needs—the essence of chronic disease service is long-term companionship. Patients require not only professional medical guidance but also crave anxiety relief, emotional comfort, and confidence in long-term treatment. Once a "familiar doctor-patient relationship" is successfully established, trust deepens over time, making patients more inclined to stick with their familiar doctor and consistently repurchase services. The impressive 2025 performance serves as strong validation of this business model's effectiveness. Full-year revenue grew rapidly to RMB 3.53 billion, a significant year-on-year increase of 30.2%. Profitability improved markedly; following adjusted profitability in 2024, the company achieved full IFRS profitability in 2025, with net profit reaching approximately RMB 12 million. Adjusted net profit also increased by 19% year-on-year to RMB 20.4 million.
While crossing the breakeven point, the company's user base continued to expand. Average monthly active users reached 13.7 million, up 35% year-on-year, and the cumulative number of registered users hit 56.4 million. The user repurchase rate remained high at over 85%, indicating the company has successfully cultivated a large core user group with strong payment willingness and high loyalty. Simultaneously, the company's medical resources and supply chain network were further strengthened, building competitive barriers difficult for peers to surpass. As of the latest disclosure, the total number of registered doctors exceeded 251,000, forming a multi-department medical service network. Drug SKUs surpassed 217,000, with prescription drugs accounting for 62%, meeting the long-term and diverse medication needs of chronic disease patients. The supply chain network covers over 1,700 suppliers and more than 900 pharmaceutical companies, with scale effects gradually emerging.
From a market valuation perspective, if traditional pharmaceutical e-commerce platforms, which often require continuous cash burn for customer acquisition, are considered depreciating assets, then FANGZHOU JIANKE, by fostering "familiar doctor-patient relationships," transforms users into appreciating long-term assets embedded within a loyal customer base. Over a user's lifecycle spanning several years, the initial customer acquisition cost is amortized infinitely, while regular, sustained repurchases generate stable and predictable cash flow returns. In the current market environment that favors assets with high certainty, this business model capable of consistently contributing stable cash flow undoubtedly deserves a higher valuation premium.
'AI+' Empowers the Entire Medical Process, Digitalization Drives High Growth Expectations. If the business model based on the "familiar doctor-patient relationship" anchors FANGZHOU JIANKE's long-term value foundation, then the comprehensive empowerment of "AI+healthcare" adds a layer of higher elasticity to its valuation premium expectations. In recent years, FANGZHOU JIANKE has continuously advanced its AI+H2H ecosystem strategy, using the "Xingshi Large Model" as its core intelligent engine to deeply embed AI technology into business processes. Public information shows that the Xingshi Large Model integrates multimodal capabilities—including image and speech recognition, natural language processing, large-scale medical knowledge storage, and reasoning functions—achieving advanced performance benchmarks in the medical AI field. As an excellent example of vertical AI application in Chinese healthcare, the Xingshi Large Model made headlines on the news section of *Nature* upon its official release in September 2025, receiving authoritative academic recognition for its technical prowess.
Leveraging this technological foundation, FANGZHOU JIANKE has continuously launched multiple AI agents and applications that run through various medical stages—"prevention, screening, diagnosis, treatment, and management"—comprehensively covering common scenarios such as medication guidance, patient education, diagnostic assistance, and medical literature queries. On the business side, AI is becoming a "super assistant" for enhancing doctor efficiency. The "AI Doctor Assistant" and "AI Academic Assistant" provide doctors with diagnostic support and medical literature retrieval tools, significantly improving consultation efficiency and service quality. The "AI Content Creation Assistant" empowers professional content production through features like video image AI analysis, AI script generation, and AI mixing/editing, effectively breaking down information barriers between doctors and patients and delivering professional medical knowledge in more accessible ways.
On the service side, AI is reshaping the patient experience. The "AI Health Manager" offers 7x24 health consultations, Q&A, report interpretation, and intelligent triage, allowing patients to access professional-grade health guidance anytime. The "AI Pre-consultation Agent" assists with intelligent pre-consultation, collecting patient information in advance to reduce waiting times. The "AI Medication Assistant" supports practical functions like drug identification via photo, addressing real-world pain points for elderly patients who may be unfamiliar with drug properties or prone to forgetting details. Addressing the issue of "AI hallucination" common in general large models, the company has invested significant effort in technology, data, security management, and databases. It is understood that the company has internally built an accurate knowledge base containing professional information like drug manuals and medical guidelines to ensure AI responses are evidence-based and traceable. Furthermore, through cooperation with Tencent Cloud, the company has accessed greater computing resources to upgrade its technical architecture and imposed stricter security and compliance requirements. Task segmentation for highly specialized queries helps effectively suppress AI hallucinations across multiple dimensions.
Looking ahead, the comprehensive empowerment of AI in healthcare will bring dual upgrades in operational efficiency and service quality, which will ultimately translate into sustainable improvements in profitability and continued growth in user scale and loyalty. As AI applications are further implemented, the market valuation of FANGZHOU JIANKE as a healthcare technology company is expected to rise steadily.
On the Eve of Value Correction, the Market Presents a Golden Allocation Opportunity. The market has habitually broadly categorized FANGZHOU JIANKE as an "internet healthcare platform." However, from the essence of its business model, the company's true value is fundamentally different from the "traffic business" of traditional medical e-commerce. The user ecosystem built on "familiar doctor-patient relationships" inherently features high loyalty and high repurchase rates, making future consumer behavior highly predictable and future revenue far more certain than that of ordinary e-commerce.
From the perspective of financial fundamentals, a key concern for capital markets, the non-operational factors that previously affected the financial statements have been completely eliminated with the arrival of the profitability inflection point. The achievement of full IFRS profitability in 2025 signifies that the company's self-sustaining capability has been fully validated. Additionally, as a series of AI applications, led by the Xingshi Large Model, accelerate their rollout, the expected efficiency gains from AI will add further elasticity to the valuation.
Notably, despite a significant mismatch currently existing between the company's share price and its perceived intrinsic value, professional investment institutions have already "voted with their capital." A recent placement by the company was oversubscribed, successfully raising HKD 1.5 billion at a price of HKD 3.32 per share. Furthermore, following the company's positive profit alert, Citi issued a research report maintaining a "Buy" rating with a target price of HKD 8.5. Based on the opening price of HKD 1.35 on March 20th, Citi's target implies an upside potential of approximately 530%. Even using the more conservative placement price of HKD 3.32 as a reference, there remains an upside potential of 146%.
At a time when the company's valuation logic is becoming clearer, a lag in market recognition has resulted in the current market capitalization failing to fully reflect the true value of this chronic disease management leader. However, this mismatch precisely presents a window of opportunity for value investing. As a high-quality investment target combining certainty and growth potential, FANGZHOU JIANKE is poised for value correction as market perception gradually aligns.