Xunfei Healthcare Technology Co., Ltd. (XUNFEIHEALTH) reported strong top-line expansion and a sharply reduced interim loss for the six months ended 30 June 2026, underscoring rapid commercial uptake of its medical AI portfolio.

Revenue climbed 49.4% year on year to RMB 446.12 million, fuelled by broad-based growth across all business lines. Gross profit rose 53.5% to RMB 236.11 million, lifting gross margin 1.4 percentage points to 52.9%. The group’s loss for the period contracted to RMB 48.10 million, a 41.5% improvement from the prior-year shortfall, while net loss attributable to shareholders narrowed 20.0% to RMB 59.30 million.

Segment performance • AI Medical Assistant: Revenue increased 47.5% to RMB 201.56 million, contributing 45.2% of group turnover with a 56.1% gross margin. • AI Health Partner: Revenue surged 74.9% to RMB 182.39 million, driven by cloud medical imaging, post-discharge management and intelligent devices; segment margin stood at 51.0%. • AI Digital Base: Revenue edged up 7.9% to RMB 62.17 million; margin improved sharply to 48.6% from 25.9%, supporting the group’s overall profitability.

Technology and market reach During the period the company launched Spark Medical Model V3.5, the first domestically trained multi-modal large model to achieve practical thresholds in far-field voice recognition, automatic medical record creation and imaging report generation. Xunfei Healthcare’s solutions now serve more than 77,000 primary healthcare institutions across 828 districts and counties and over 700 graded hospitals nationwide.

Investment in innovation Total R&D spending (expensed and capitalised) reached RMB 194.80 million, representing 43.7% of revenue and marking a 45.1% rise from a year earlier. Core technology expenditure remained stable at RMB 48.70 million.

Balance-sheet highlights Cash and cash equivalents increased to RMB 163.13 million from RMB 123.64 million at end-2025, aided by net inflows from investing activities. Bank borrowings totalled RMB 298.10 million, and the gearing ratio (total liabilities/total assets) stood at 62.2%. The group had RMB 1.06 billion in unutilised committed banking facilities as of 18 August 2026.

Operational milestones Key achievements included completion of Guangxi’s provincial imaging cloud platform, expansion of the Digital and Intelligent Family Doctor service to 120 districts and counties, and strategic agreements with Indonesia’s Sinar Mas Group for Southeast Asian market entry. The company also advanced national standards for medical large models and secured multiple industry accolades.

Outlook Management will concentrate on deepening penetration of the General Practice CDSS in primary care, scaling AI Medical Assistant adoption, and accelerating monetisation of patient-centric AI Health Partner services. Capital from the December 2024 Hong Kong listing remains earmarked for R&D, product expansion, commercial network strengthening, strategic acquisitions and working capital, with HKD 111.3 million of the HKD 507.1 million proceeds yet to be deployed, targeted for full utilisation by end-2026.