HealthyWay Inc. H1 2026: Revenue Jumps 49.7%, Net Profit Rises Despite Heavy AI R&D Spend

Bulletin Express
09/14

HealthyWay Inc. released its unaudited interim results for the six months ended 30 June 2026. The digital-health platform reported robust top-line expansion driven by corporate and digital marketing services, while accelerated investment in AI capabilities dominated cost dynamics.

Revenue and Profitability • Group revenue surged 49.7% year-on-year to RMB 775.32 million, supported by a 71.6% increase in corporate and digital marketing revenue to RMB 708.37 million (91.4% of total). • Gross profit climbed 50.3% to RMB 243.16 million; gross margin held broadly stable at 31.4% (H1 2025: 31.2%). • Research and development expenses ballooned 241.2% to RMB 127.57 million, reflecting intensified spending on AI Digital Employee programmes. • Selling expenses fell 8.0% to RMB 80.29 million, while administrative expenses were flat at RMB 26.46 million. • Finance costs dropped 57.1% to RMB 0.60 million on lower borrowings. • Profit before tax came in at RMB 9.73 million (H1 2025: RMB 10.50 million); a tax credit of RMB 0.47 million versus a RMB 3.46 million charge a year earlier lifted net profit to RMB 10.19 million, up 44.8%.

Segment Performance • Corporate & Digital Marketing Services: Revenue RMB 708.37 million; content services +73.4% to RMB 434.62 million, IT services +89.4% to RMB 232.17 million, digital marketing +4.6% to RMB 41.58 million. • Health & Medical Services: Revenue RMB 63.73 million, down 39.1% after disposal of a pharmacy subsidiary; now 8.2% of group revenue.

Operating Metrics • Registered individual users reached 229.8 million (+6.7 million versus FY25), registered physicians 953,000 (+19,000), and connected hospitals 17,047 (+4,177). • Cash and cash equivalents stood at RMB 231.94 million; net current assets rose 1.4% to RMB 177.28 million. • Bank loans declined to RMB 15.12 million from RMB 31.24 million; all borrowings are RMB-denominated at 1.6%–2.0% interest.

Capital Management • The company repurchased 2.412 million shares for HKD 11.74 million during the period, bringing treasury shares to 3.434 million. • Unutilised IPO proceeds of HKD 106.69 million were reallocated to accelerate AI research, nationwide ecosystem expansion and working capital.

Strategy & Outlook Management will deepen precision content, real-world study services and AI-powered health solutions, continue regional ecosystem roll-outs, and restrict capital allocated to low-margin offline pharmacies. The board remains cautiously optimistic about sustaining revenue and margin growth in the second half.

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