Fangzhou posts 22% revenue rise on AI chronic care push
Fangzhou Inc., China's largest online chronic disease management platform, has reported first-half 2026 revenue of RMB 1.8245 billion, a 22.2% year-on-year increase, alongside an adjusted net profit of RMB 18.7 million, up 6.4% over the same period in 2025. The HKEX-listed company said the results reflect sustained execution of its "AI plus chronic care" strategy, which it is advancing in parallel with policy tailwinds from China's 15th Five-Year Plan.
Cumulative registered users on the platform reached 59.8 million by 30 June 2026, with average monthly active users climbing 23.1% to 14.7 million. The physician network grew to 282,000 registered practitioners. Prescription medicines accounted for 83.1% of gross merchandise value, a figure that underlines the platform's tilt toward regulated, high-acuity chronic disease interactions rather than general wellness or over-the-counter sales.
AI infrastructure and clinical applications
Fangzhou's in-house large language model, branded XingShi, sits at the centre of the company's AI investment. The model is being deployed across three distinct workflows: patient-facing pre-consultation triage, physician-side clinical decision support and academic assistance, and back-office functions including inventory management and logistics. The company frames the overall objective as converting episodic patient interactions into continuous, full-cycle care relationships, enabling a constrained physician workforce to serve a larger patient cohort without proportionally increasing headcount.
The company also reported expansion of its medical insurance integration across Guangdong Province, enabling insured patients to access online follow-up consultations, prescription renewals and medication purchases within the public insurance framework. New strategic agreements were signed with pharmaceutical companies including Youcare Pharmaceutical and Tenry Pharma, extending the platform into specialty care and innovative therapy categories.
Market context and competitive landscape
China's digital chronic care sector is growing rapidly, propelled by an ageing population, high prevalence of conditions such as hypertension and type 2 diabetes, and central government targets under the Healthy China 2030 initiative. Fangzhou competes in a market that includes JD Health, Ping An Good Doctor and a number of hospital-affiliated telehealth platforms, all vying for dominance in prescription-led online pharmacy and disease management services.
The company's emphasis on a proprietary LLM is notable in a sector where general-purpose foundation models from Baidu, Alibaba and others are readily available and increasingly capable. Whether a bespoke model trained on chronic care data delivers a durable clinical or commercial edge over adapted general models remains a key question for analysts tracking the stock. Regulatory scrutiny of AI-generated clinical guidance in China is also an evolving area, with the National Medical Products Administration publishing draft guidelines on AI-assisted diagnosis earlier in 2026.
For the second half of the year, Fangzhou said it intends to position itself as a "full-lifecycle personal health service partner," deepening its ecosystem for patients, physicians and pharmaceutical partners. Scaling AI-agent capabilities and extending pharmaceutical co-commercialisation arrangements are cited as the primary near-term priorities. Investors will be watching whether the adjusted net profit margin, currently thin relative to revenue, can widen as AI-driven efficiency gains offset ongoing investment in platform infrastructure.