HK Stock Market Move | FANGZHOU JIANKE (06086) rose more than 5% in the morning, the company's capital raising accelerated the development of an AI-driven chronic disease management platform. Recently released a positive profit forecast.

FANGZHOU JIANKE (06086) rose more than 5% in the morning, up 5.1% to HK$2.68 as of the time of publication, with a turnover of HK$111 million. In terms of news, recently, FANGZHOU JIANKE announced that the company completed a placement of 45.181 million shares, raising approximately HK$144.3 million. The company plans to use the net proceeds for the following purposes: approximately 90% will be used to accelerate the development of the company's AI-driven chronic disease management platform, including model development and optimization, expansion of infrastructure and computing resources, recruitment of talent in the AI and medical expert fields, data collection, annotation, and knowledge base development, as well as the introduction and promotion of AI-enhanced services to cover underserved patients and doctors; approximately 10% will be used for working capital and other general corporate purposes. It is worth mentioning that FANGZHOU JIANKE recently issued a positive profit warning, expecting revenue last year to be between RMB 3.5 billion and RMB 3.55 billion, a 30% year-on-year increase; expecting to return to profitability, with profits between RMB 7 million and RMB 10 million. Citigroup believes that the company's performance is broadly in line with expectations, with Citigroup originally forecasting a 28% revenue growth in 2025 and expecting a net profit of RMB 6 million. Management attributes the rapid revenue growth to an increase in the number of patients and doctors on the platform, while the return to profitability is mainly due to revenue expansion and a decrease in expenses related to share-based payments.