Chronic disease users' long-term value continues to be unleashed! Empowered by AI, Fangzhou Jianke charts a new growth

Recently, Ark Health, known as the "first stock in AI chronic disease management," released its financial report for the first half of 2025

According to the financialIn the first half of 2025, Ark Health recorded total revenue of 1.494 billion yuan, a year-on-year increase of 12.9%. Notably, Ark Health achieved its first-ever net profit turnaround, with earnings reaching 12.5 million yuan. The adjusted net profit also hit a new high of 17.6 million yuan, up 16.8% year-on-year.Undoubtedly, in the second half of 2025, Ark Health will continue to maintain this momentum, achieving rapid profit

The profit growth demonstrates the unique strategic vision of Ark Health. In 2024, Ark Health began focusing on upgrading its "AI+H2H New Ecosystem," continuously strengthening collaboration with industry partners including leading domestic and international pharmaceutical companies, health management organizations, and insurance companies. Together, they are building a diversified digital health service ecosystem, and with the support of AI, further achieving refined patient management. Recently, the State Council issued the "Opinions on Deepening the 'Artificial Intelligence+' Initiative," accelerating the application of AI across various industries and benefiting the development of the healthcare sector. Ark Health's strategy aligns with the policy direction, positioning it at the forefront of the industry and promising further growth.

The success of Ark Health is attributed to the continuous growth of the online chronic disease management sector and its unique operational

From the industry perspective, on one hand, national policies continue to intensify efforts to support the development of the online chronic disease management sector. Since the release of the guiding document "Opinions on Promoting the Development of 'Internet + Healthcare'" in April 2018, the internet healthcare industry has entered a phase of vigorous growth. Recently, the State Council issued the "Opinions on Deepening the Implementation of the 'Artificial Intelligence+' Initiative," which emphasizes, in terms of public welfare, "exploring and promoting high-level, accessible health assistants for all residents, and orderly advancing the application of artificial intelligence in scenarios such as assisted diagnosis and treatment, health management, and medical insurance services, significantly enhancing the capacity and efficiency of primary healthcare services." This policy further encourages the application of technologies like AI in chronic disease management

On the other hand, the prevalence of chronic diseases continues to rise, leading to a further increase in the demand for chronic disease management. According to the *2024 China Health Statistics Yearbook*, the incidence of chronic diseases among residents in surveyed areas (across genders and urban/rural areas) has shown an upward trend.

Prevalence of chronic diseases among residents in the surveyed area. Data source: "2024 Health Statistics Yearbook"

Patient needs, coupled with policy guidance, will continue to expand the domestic online chronic disease management market. According to projections by CIC, the total gross merchandise volume (GMV) of China's online chronic disease management is expected to grow from RMB 45.5 billion in 2023 to RMB 600 billion in 2030, representing a compound annual growth rate of 44.

To gain a foothold in the vast online chronic disease management market, companies must possess uniquely advantageous core capabilities. For Ark Health, this means mastering the understanding of core chronic disease users and their needs

As early as 2015, Hong Kong ArrowCare identified its core user base—"chronic disease patients"—and delved deeply into the realm of "internet + chronic disease management." It established the innovative H2H (Hospital to Home) smart healthcare ecosystem, advocating for the gradual extension of medical services, chronic disease management, patient-physician education, and pharmaceutical care from hospitals to patients' homes. This approach enables patients to experience a professional and personalized full-cycle health management model. In 2024, Hong Kong ArrowCare further upgraded its original platform to create a more professional, intelligent, and efficient "Hong Kong ArrowCare AI + H2H Smart Healthcare New Ecosystem" (hereinafter referred to as the "AI + H2H New Ecosystem"). Leveraging its advanced AI technology to drive the enhancement of medical services for both doctors and patients, it delivers a seamless healthcare experience from hospital to home for patients.

Compared to other platforms, the extension of medical services from hospitals to homes,This has cultivated a unique "familiar patient-doctor relationship," placing greater emphasis on patients' long-term benefits—patients inherently trust their doctors more, while doctors can reduce the incidence of chronic disease complications through long-term, continuous patient management. This foundation also distinguishes Guangzhou Fangzhou Pharmaceutical Co., Ltd. from pharmaceutical e-commerce platforms and health management platforms, serving as its core competitive advantage

Today, as this innovative ecosystem continues to gain momentum, it has also brought profitability to Fangzhou Janke

For internet healthcare platforms, user engagement and willingness to pay are critical aspects that cannot be

Ark Health's construction of an "AI+H2H New Ecosystem" based on "familiar doctor-patient relationships" has attracted more high-value users to the platform—these users exhibit significantly higher levels of engagement and willingness to pay compared to the industryAccording to the financial report, as of the end of June, the number of users on Ark Health has reached 58.2 million (a year-on-year increase of 15.8%). Among them, the monthly active users have surged to 11.9 million, marking a significant year-on-year growth of 34.4%. Additionally, the repurchase rate among paying users is as high as 85.

Moreover, Guangzhou Fangzhou Pharmaceutical Co., Ltd. continuesThrough ecosystem development and the empowerment of digital innovative technologies like AI, we further integrate the medical and pharmaceutical resources needed by patients and enhance service quality, which in turn fosters greater user trust in the

As the leading force in medical services, the inclusion of high-quality doctors is particularly crucial for the management of patients' diseases.

On one hand, Ark Health continues to attract doctors to join the platform. The increase in doctors from tertiary hospitals, in particular, has brought higher service quality to patientsThe financial report shows that as of the end of June, the number of registered doctors on Ark Health reached 229,000, with 58.9% affiliated with tertiary hospitals, and 38.5% holding the title of associate chief physician or higher. Moreover, Ark Health continues to focus on covering key departments with high patient demand, such as weight loss, metabolic, and infectious disease specialties, to further enhance the accessibility of medical

On the other hand, AI technology is further helping to reduce the burden on doctors by promptly addressing patients' inquiriesWhen seeking online consultations, users often expect doctors to be fast, provide high-quality diagnoses, and show empathy. However, achieving this in reality is often challenging. Currently, Ark Health is integrating AI tools to build an innovative business model that continuously enhances doctors' efficiency and provides patients with whole-lifecycle management. In the first half of 2025, Ark Health launched an AI Electronic Medical Record (EMR) agent and an AI pre-consultation agent, enabling 24/7 intelligent pre-consultation and medical record retrieval. Through intelligent follow-up questioning, it helps doctors organize patient symptoms, medical history, and data, further improving the efficiency of follow-up visits. Additionally, by deploying an AI triage agent, Ark Health assists patients in efficiently selecting doctors and appropriate departments. The company has also introduced an AI doctor assistant to support physicians with efficiency tools. These initiatives have successfully reduced the workload for

As one of the primary means of disease control for patients with chronic illnesses, ensuring the supply of medicines is extremely

On the one hand, by collaborating with numerous pharmaceutical companies, Ark Health has met the extensive medication needs ofAccording to the financial report, as of the end of June, Ark Health had established partnerships with over 1,650 suppliers and more than 980 pharmaceutical companies, including large multinational corporations and leading domestic enterprises. By the end of June, Ark Health provided users with over 216,000 drug SKUs, 62% of which were prescription drug SKUs. The ample supply of medications is also reflected in the usage data—prescription drugs accounted for 81.7% of the total merchandise transaction value. This further demonstrates Ark Health’s ongoing commitment to collaborating with pharmaceutical companies to serve patients with chronic conditions

On the other hand, Ark Health is still using AI to further optimize the medicationFor instance, within the Ark Health Online Pharmacy application and mini-program, AI is being utilized to better analyze and identify patients' search intent, thereby enhancing the efficiency of medication searches. Additionally, Ark Health has implemented a comprehensive strategy by upgrading its AI customer service assistant to better support patients throughout their medication management journey. Leveraging the AI assistant, it significantly aids in prescription consultations, medication reminders, and timely prescription renewals, further improving patient adherence

To provide patients with more convenient services, Ark Health is further enhancing the payment serviceSince July 2024, when Ark Health began providing online medical consultation and prescription services to Guangzhou medical insurance participants, it has continuously upgraded its platform to improve the patient experience. In the first half of 2025, Ark Health further simplified the patient medical insurance registration process and enhanced its medical insurance compliance system. By adding its subsidiary Ruishi Hospital to Guangzhou's online medical insurance platform and further upgrading the Medical Insurance 2.0 interface, it has laid a stronger foundation for patients to access more convenient services in the future.

Behind the turnaround of Fangzhou Jianke, companies listed in the internet healthcare sector are entering a phase of comprehensive

This trend has also drawn the attention of leading institutions such as Citi Research to promising sectors. In a recent research report, Citi Research noted, "An ecosystem built on long-term doctor-patient relationships enables Fang Zhou Jian Ke to better capture the substantial lifetime value of chronic disease patients, while also meeting the needs of other key stakeholders in the healthcare system, including doctors and pharmaceuticalCurrently, the valuation of Ark Health, which possesses core users and ecosystem value, is severely underestimated. At present, Ark Health's stock price is approximately HKD 4 per share. Citigroup Research initiated coverage with a "Buy/High Risk" rating and a target price of HKD 8.5

Citigroup Research's commentary also garnered significant media attention. Some media outlets referred by Ark Health as the "Pop Mart of the internet healthcare sector." They pointed out that Pop Mart has built a loyal, active, and highly paying "hardcore fan" base for its IP products. These fans continuously accumulate and influence other groups, driving the sustained popularity of Pop Mart's IP offerings. Core loyal users are seen as Pop Mart's moat. Similarly, Ark Health leverages "familiar doctor-patient relationships" to provide highly sticky services for core chronic disease groups, thereby attracting high-value users with a willingness to pay and forming its own mo

Building on this foundation, Ark Health continues to strengthen collaborations with industry partners, including leading domestic and international pharmaceutical companies, health management institutions, and insurance companies, to jointly build a diversified digital health service ecosystem. It persistently explores cutting-edge technologies such as AI to further improve the quality of chronic disease management, reduce procurement costs, enhance efficiency, and achieve precision marketing. Ark Health's series of initiatives will not only assist chronic disease patients in long-term and effective management but also further unlock the value of patients

The recent performance growth and turnaround from loss to profit mark a pivotal moment for the release of user value among chronic disease patients at Fangzhou Jianke. As Fangzhou Jianke continues to build its "AI+H2H Innovation Ecosystem," greater development potential and growth dividends are gradually emerging, with the long-term value for users becoming increasingly prominent.

What different landscape will Ark Health bring to the industry in the future? Let's wait and see.