FANGZHOU JIANKE (06086) Mid-Year Report Observation: Trust as the Core, AI as the Wing, Continually Upgrading to the "Full Cycle Health Partner" Strategy

The Chinese internet healthcare industry is at a critical crossroads. By 2026, Chinas internet healthcare market is expected to exceed a trillion yuan, driven by the acceleration of population aging and the enormous demand for home care created by the "silver economy." This is forcing the entire healthcare service system to shift from an inpatient-centered approach to an extension beyond hospitals and a transition toward full-cycle management, with the chronic disease service segment expanding at a high double-digit growth rate. Currently, the industry trend is clear: building an online health management system is imperative, and chronic disease services have already expanded into multiple disease areas. However, when nearly all players are shouting full-cycle service, the true test of a company's long-term value lies in whether its business model has a differentiated moat and verifiable sustainability. On August 27, FANGZHOU JIANKE (06086) released its mid-2026 performance report, showing revenue of 1.8245 billion yuan, a year-on-year increase of 22.2%. Adjusted net profit reached 18.708 million yuan, a year-on-year increase of 6.4%, maintaining a good momentum of continuous profitability. More importantly, through the surface numbers in the financial report, we can see that a new business model distinct from traditional logic is taking shape in the chronic disease service segment. With a crowded competitive field and multiple models, the mainstream path in the industry has encountered bottlenecks. To understand the uniqueness of FANGZHOU JIANKE's business model, one must first grasp the competitive landscape it is in. Currently, chronic disease management is one of the most important areas in China's healthcare market, with a vast patient base and strong growth potential. According to Frost & Sullivan, from 2020 to 2030, medical spending on chronic diseases in China is expected to grow from 4.1 trillion yuan to 12.5 trillion yuan, with a compound annual growth rate of 11.8%. Though the water is deep and the fish are plentiful, undercurrents abound. In the outpatient arena, the chronic disease service market has formed three main camps: comprehensive pharmaceutical e-commerce represented by JD HEALTH and ALI HEALTH, which leverage their parent companies' advantages in traffic, logistics, and supply chain to penetrate the chronic disease medication market; offline chain pharmacies represented by Yifeng Pharmacy Chain and DaShenLin Pharmaceutical Group, which rely on physical stores for local fulfillment and service; and vertical chronic disease service platforms represented by FANGZHOU JIANKE, which often have a deeper understanding of the chronic disease market, a certain reserve of professional knowledge, and higher expertise and authority, competing for users through differentiated services. This landscape determines the divergence in business models among different companies. Pharmaceutical service providers covering multiple diseases primarily rely on "scale effects" to attract users with vast SKUs and low-priced medications, treating chronic disease medication as a high-frequency category in pharmaceutical retail. Their core lies in supply chain efficiency and traffic conversion, but the relationship between users and platforms essentially remains at the transactional level. For offline chain pharmacies, the logic is scene reach, fulfilling immediate demands through physical store networks, but service depth is similarly limited by the transactional boundary of "in-store only." If the competitive barrier for comprehensive pharmaceutical e-commerce platforms is "scale," and for offline pharmacies it is "touchpoints," then for FANGZHOU JIANKE, the competitive barrier is "trust." This is a deep trust relationship built on an AI + H2H (Hospital to Home) framework and an acquaintance-based doctor-patient model that encompasses the entire treatment process for users. Trust is the barrier, allowing us to scrutinize the differential core of FANGZHOU JIANKE. It is observed that the linear growth logic of traditional chronic disease management platforms essentially involves a one-way loop of "customer acquisition - transaction - churn," where the core variables in user decision-making are drug prices and delivery speed. The relationship between platforms and users is weakly connected, with customer value ceilings determined by single transaction amounts and growth ceilings shaped by traffic scale and customer acquisition costs, which have gradually peaked amid fierce competition. What FANGZHOU JIANKE attempts to establish as its core is to break away from the single supply logic of drug sales and position itself as an ecosystem that integrates the full cycle of chronic disease services. Prescription medications account for as much as 83.1% of total GMV, which directly reflects the embedding of services into the core diagnostic scenarios for chronic disease patients: these patients need to take prescription medications long-term and regularly. This ratio indicates that users have developed a habitual usage pattern on the platform that encompasses post-diagnosis prescriptions, medication delivery, and subsequent health management, laying the groundwork for a long-cycle service model. Moreover, the foundation of this ecosystem is its accumulation of tens of millions of users and a resource base of thousands of doctors: among 59.8 million registered users, a high proportion are chronic disease patients, and 14.7 million monthly active users have increased by 23.1% year-on-year, indicating that users reliance on the platform has extended from "purchasing medications" to high-frequency scenarios such as daily health consultations, doctor-patient communication, and follow-up management; 282,000 registered doctors provide a professional resource base for realizing these services. Furthermore, the companys medical resources and supply chain network continue to solidify, creating a competitive barrier that is difficult for peers to surpass. As of the latest disclosure date, it has leveraged its extensive and specialized pool of registered doctors to establish a multi-disciplinary medical service network; its supply chain network covers over 1,800 suppliers and more than 1,000 pharmaceutical companies, with economies of scale gradually becoming evident. In the chronic disease service field, trust is the most crucial currency. In the first half of 2026, FANGZHOU JIANKE's repurchase rate for paying users reached an impressive 89.2%, essentially quantifying user trust. Once patients recognize the quality of the platform's medical services and the expertise of the doctors, they are naturally inclined to form long-term usage habits. With the continuous penetration of full-cycle proactive intervention services, the platform has increased the service frequency and interaction depth for individual customers, forming a positive cycle of service building trust user retention and repurchase value enhancement feeding service upgrades, breaking through the traditional linear growth ceiling, with growth resilience significantly stronger than platforms that rely solely on transactions for profit. In this light, compared to its competitors, FANGZHOU JIANKE's differentiated strategy based on "acquaintance doctor-patient" relationships is more conducive to reaching the core decision-making factors in chronic disease services, while its strong product capabilities will further enhance the company's competitiveness. Building a strong growth foundation, three genes support the full-cycle service ecosystems realization. Currently, the internet healthcare industry is undergoing a transformation, with user demand shifting from merely delivering medications to demanding full lifecycle health interventions. Previously, the State Council issued the "15th Five-Year Plan for National Health," which emphasized "optimizing a comprehensive and integrated health service system" as its main line, elevating full-cycle health management to a national strategic height. A consensus has been formed within the industry, yet the number of companies capable of transforming "full-cycle services" into sustainable business models is few. In our view, FANGZHOU JIANKE's full-cycle service model is likely to succeed, centered around its three irreplaceable growth genes, directly tackling the three persistent pain points of trust, continuity, and cost in the industry. Firstly, FANGZHOU JIANKE resolves the core trust issue of medical services through "acquaintance doctor-patient" relationships. Based on offline consultations between patients and doctors, patients' existing trust in doctors is continued and strengthened online through the platform. Through long-term service accumulation, it has created familiar connections between users and contracted doctors, meaning users actively follow their doctors' service rhythms for health management, leading to significantly higher stickiness and repurchase rates compared to platforms with anonymous doctor-patient relationships. Secondly, the service continuity of the H2H (Hospital to Home) system breaks the traditional pain point of treatment before and after hospital disruption: under traditional models, patients' treatment services are concentrated in hospitals, with a lack of connections for health management and follow-up services outside hospitals. FANGZHOU JIANKEs full-cycle services connect the entire process from hospital treatment to external health management, allowing users to receive ongoing follow-up on treatment plans completed in the hospital through the platform. This continuity of service not only greatly enhances users' health management outcomes but also strengthens their reliance on the platform. Most notably, in the current era of rapid technological iteration, FANGZHOU JIANKE is proactively laying out AI technology embedded into its business processes, developing an AI product matrix based on the XingShi large model, which is expected to address the cost challenges of large-scale delivery of high-quality chronic disease services, transforming full-cycle services from small-scale project practices into business operations that can reach tens of millions of users. In specific implementation scenarios, FANGZHOU JIANKE is making efforts on both the doctor and patient sides to build a complete AI product matrix: On the user side, the AI product matrix has been refined and upgraded. The AI health steward and AI medication assistant break the constraints of time and space, and with the scale deployment of AI intelligent follow-up tools, the loop for outpatient health management services is further completed. Relying on 24/7 online service capabilities and dynamic personalized follow-ups, the platform can not only implement differentiated health management for various users but also offer medication reminders and health information services. On the doctor side, integrating capabilities like AI pre-consultation, AI auxiliary diagnosis, and AI academic assistants allows doctors to be freed from repetitive desk work. While improving their service efficiency, it also provides an enhanced overall management experience for online patients. Meanwhile, with the introduction of the follow-up system, doctors' post-treatment management efficiency has significantly improved. Through AI, "burden reduction and efficiency enhancement" fully amplifies limited quality doctor resources, extending professional services to more patients. Thus, it can be seen that AI technology is not merely a foundational technical support for FANGZHOU JIANKE's ecosystem but a core enabler for unlocking commercial value. The path of value creation can be clearly discerned: firstly, AI technology replaces standardized manual services like basic consultations and data organization, achieving precise reductions in operational costs, thereby directly expanding profit margins; secondly, AI technology drives a shift in user value realization from one-time service interactions to long-term health management consumption, while also potentially extending value-added service categories, ultimately weaving a virtuous cycle of "user engagement - health management - medical services" into a comprehensive ecosystem of lifecycle health management. Conclusion At the current moment, FANGZHOU JIANKE's future growth logic is clear and audible. On one hand, China's digital health market is still in a phase of increasing penetration rates, with residents' demands for full-cycle health management continuously releasing, providing ample space for business expansion; on the other hand, its ongoing iteration of AI technology and deep refinement of the ecosystem will further widen the gap with its peers. In the future, as AI technology deepens its application in chronic disease services, medical decision-making, and other scenarios, the professionalism and precision of its services will continue to improve. For the capital market, platforms that simultaneously possess the "trust barrier + AI scalability + full-cycle service loop" are extremely rare. This chronic disease service platform, which is gradually perfecting its business transformation and strengthening its technological barriers, is likely to see its long-term value validated and highlighted alongside the release of industry dividends and the enhancement of its ecosystem. It is foreseeable that starting from 2026, FANGZHOU JIANKE will not only usher in a leap in its own growth but also provide a new model for the chronic disease service and digital health industrys business model innovation, accelerating the industrys advance toward a direction characterized by "technology empowerment, ecological collaboration, and service closure."