FANGZHOU JIANKE (06086) 2025 Results: Revenue Up 30.20% to RMB3.53 Billion, Swings to RMB12.00 Million Net Profit

Bulletin Express
Mar 19

Fangzhou Inc. (stock name FANGZHOU JIANKE, 06086) released its audited results for the year ended 31 December 2025.

Revenue and Earnings • Revenue jumped 30.20% year-on-year to RMB3.53 billion, supported by continued expansion in online pharmacy, wholesale and medical service operations. • After a RMB854.89 million loss in 2024, the group reported a RMB12.00 million net profit, or RMB0.01 basic earnings per share. • Adjusted net profit (non-HKFRS) rose 19.15% to RMB20.40 million; adjusted net margin held flat at 0.60%.

Segment Performance • Online retail pharmacy: revenue climbed 33.40% to RMB1.87 billion; gross margin 21.0% (2024: 22.6%). • Comprehensive medical services: revenue grew 21.90% to RMB788.22 million; gross margin fell to 11.0% (2024: 17.2%) amid product-mix adjustments. • Wholesale: revenue increased 41.60% to RMB780.17 million; gross profit reached RMB12.64 million. • Customized content & marketing solutions: revenue slipped 19.70% to RMB84.38 million, but gross margin improved to 78.9% (2024: 74.4%).

Cost and Margin Dynamics • Overall gross profit rose 8.40% to RMB559.44 million; group gross margin narrowed to 15.9% (2024: 19.1%) on segment-mix changes. • Selling and distribution expenses grew 12.80% to RMB401.24 million, representing 11.4% of revenue (2024: 13.1%). • Administrative expenses plunged 83.80% to RMB147.29 million following a sharp reduction in share-based compensation.

Balance-Sheet Highlights • Total assets stood at RMB813.89 million, with cash and cash equivalents at RMB233.49 million (2024: RMB174.64 million). • Net assets increased to RMB153.73 million from RMB131.70 million a year earlier. • Average inventory turnover shortened to 19.8 days (2024: 23.1 days). • Current and quick ratios were unchanged at 1.2 and 0.9 respectively; gearing ratio remained 0.8.

Operating Metrics • Average monthly active users expanded 35% to 13.70 million. • Registered doctors exceeded 251,000, with 57% from Class III hospitals. • User repeat-purchase rate stayed above 85%; prescription drugs represented over 80% of GMV.

Technology and Strategic Moves • Introduced the “XingShi” large language model, enabling multimodal AI agents such as AI EMR, Pre-Consult and Doctor Assistant tools. • Formed partnerships with Tencent, Novo Nordisk, Otsuka and Innovent Biologics to broaden therapeutic offerings. • Enhanced AI-driven procurement, cutting average inventory days by 3.3 days year-on-year.

Post-Period Capital Raising On 2 February 2026 the company completed a HK$144.30 million share placement at HK$3.32 per share, earmarking 90% of proceeds for AI-driven chronic-disease-management platform development and 10% for general working capital.

Dividend The board proposed no final dividend for FY 2025.

Governance Update In December 2025, Mr. Xie resigned as chairman and CEO; non-executive director Mr. Hand became chairman while the CEO position remains vacant pending a formal search.

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