160 Health International Limited reported a solid turnaround for the six months ended 30 June 2026, moving to a net profit of RMB 1.68 million from a RMB 19.63 million loss a year earlier as digital healthcare services accelerated.

Revenue climbed 9.7% year on year to RMB 318.75 million. Digital healthcare and wellness solutions were the principal growth engine, advancing 27.6% to RMB 101.11 million and lifting their contribution to 31.7% of total revenue (1H 2025: 27.3%). Sales of pharmaceutical and healthcare products edged up 2.9% to RMB 217.64 million.

Gross profit expanded 33.3% to RMB 85.37 million, with overall gross margin strengthening to 26.8% (1H 2025: 22.0%). Segment margins diverged sharply: digital solutions delivered an 80.7% margin (up 3.3 ppt), while product sales remained thin at 1.8% (up 0.5 ppt).

Cost discipline and AI-driven efficiency gains supported profitability. Research and development expenses fell 11.5% to RMB 15.44 million, reflecting lower staff costs. Selling and marketing spend rose 3.9% to RMB 36.78 million as the group expanded its medical resource network, while administrative expenses were largely flat at RMB 27.19 million. Operating profit reached RMB 5.53 million after a RMB 18.01 million loss in the prior-year period.

Adjusted net profit (non-IFRS) was RMB 5.45 million versus a RMB 5.06 million loss a year earlier, after adding back RMB 3.78 million of share-based compensation.

Cash and cash equivalents stood at RMB 427.0 million at end-June, up from RMB 398.81 million at end-2025. Net cash used in operations totalled RMB 53.03 million, offset by RMB 93.22 million of financing inflows, mainly from RMB 158.80 million in new bank borrowings. The gearing ratio increased to 72.6% (31 Dec 2025: 69.2%).

Key operational metrics at 30 June 2026 included 61.9 million registered users, 3.4 million average MAUs, partnerships with more than 45,000 medical institutions and over 908,000 medical professionals, and coverage extending to 260 Chinese cities. The “160AI Hospital” collaboration model had signed 163 public hospitals, of which 78 are Class IIIA.

Management reiterated its strategy to deepen AI-based hospital solutions, expand international business—starting with Southeast Asia—and develop integrated “healthcare AI agent + hardware + debugging” offerings that combine software capabilities with computing-power infrastructure. The group targets becoming a “medical AI intelligent ecosystem infrastructure and service provider” while maintaining investment in AI R&D and exploring new revenue streams such as token-based models for computing power.

No interim dividend was declared for the period.