On August 18, XUNFEIHEALTH (02506) released its interim results for the 2026 fiscal year. During the first half of the year, the company generated revenue of 446 million yuan, representing a year-on-year increase of 49.4%. Gross profit climbed to 236 million yuan, up 53.5%, with the overall gross margin reaching 52.9%, a 1.4 percentage point improvement compared to the prior year.
The primary catalyst behind this performance surge is the company's resolute commitment to its ARR operational transformation. The business model is pivoting from one-off project deliveries toward a platform-based operational framework. Multiple product lines have now successfully embedded recurring revenue mechanisms. Within its imaging cloud segment, the Anhui project has entered a stable operational phase, while the Guangxi initiative achieved full coverage of tier-two hospitals within a 90-day window. Additionally, a new five-year service agreement was secured in Ningxia. Leveraging its existing imaging cloud infrastructure, the company is broadening its scope into a comprehensive medical imaging cloud, extending its operational boundaries from conventional radiology to encompass all technical medical examinations. This includes the construction of an integrated data platform that unifies laboratory tests, pathology, electrocardiography, and ultrasound services.
On the AI front, post-discharge management solutions are now operating on a routine basis at leading medical institutions such as Qilu Hospital of Shandong University and the First Affiliated Hospital of USTC. Model validation has been completed at these single-hospital sites, and the number of paying users continues to grow steadily. Strategically, the company is concentrating its resources on three core business pillars: AI diagnostic assistants, AI health companions, and an AI digital foundation. Resources are being fully channeled toward expanding ARR-based recurring income.
As the operational model matures and customer retention strengthens, ARR growth is expected to accelerate further, laying the groundwork for a more predictable and durable long-term revenue trajectory for the company.