SIPAI HEALTH (00314) announced its interim results for the six months ended June 30, 2025. The group achieved total revenue of RMB 1.224 billion, total gross profit of RMB 176 million, gross profit margin of 14.4%, normalized net loss of RMB 11.996 million, and loss per share of RMB 0.12.
In the first half of 2025, the group comprehensively advanced its strategic transformation and upgrade, achieving significant results. Based on the strategic planning established in the fourth quarter of 2024, the group is committed to upgrading into a commercial medical payment and medical service network. Leveraging the development of commercial medical insurance brokerage business, it focuses on the medical protection and health management needs of corporate employees. By efficiently integrating national medical service network and pharmaceutical service network resources, it continues to provide professional medical protection solutions and high-quality medical and health services for corporate employees and their families, creating a one-stop closed-loop service covering "medical, pharmaceutical, health, and insurance."
At the strategic execution level, the company made strategic adjustments around the development needs of commercial medical insurance business. On one hand, it concentrated advantageous resources to fully advance the scaled growth of corporate health insurance business and the construction of service networks. On the other hand, it achieved quality improvement and efficiency enhancement through continuous structural adjustments and management optimization.
During the reporting period, the company implemented strategic restructuring and optimization of the specialty pharmacy business line and Huimin Bao business segment (a sub-segment under the commercial medical insurance business line), driving the group's overall gross profit margin to rise significantly by 4.7 percentage points year-over-year to 14.4%. The normalized net loss narrowed substantially by 59.6% year-over-year, making the path to profitability targets clearer and laying a solid foundation for high-quality, sustainable development.
Looking ahead to the second half and longer cycles, the company is confident in continuing the trend of business scale growth and profitability improvement. On one hand, policy dividends continue to be released, and the construction of commercial health insurance and multi-layered protection systems continues to deepen, providing a stable growth external environment for core businesses. On the other hand, as first-mover advantages continue to deepen - including data accumulation that increases alongside service scale, AI model-driven solution design capabilities, and continuously expanding medical and pharmaceutical delivery networks - this will further enhance solution customization efficiency and customer experience, driving the continued rise in the proportion of high-margin commercial insurance business.
The company expects that this dual-engine model of "policy leadership + competitiveness-driven" will provide long-term support for the scaled growth of the group's core business, optimization of profit structure, and improvement of cash flow.