Easy and Healthy's Debut Earnings Report: Restructuring, "Raising Lobsters," How Effective Is the Transformation?

On the evening of March 23, the digital health management platform Easy Health (2661.HK) disclosed its performance report for the fiscal year 2025, which is also the first annual operational report presented since Easy Health went public.

The performance report shows that Easy Health’s revenue in 2025 reached 1.256 billion yuan, a year-on-year increase of 32.9%. The loss from continuing operations was 380 million yuan. However, Easy Health’s adjusted net profit for 2025 increased by 9% year-on-year to 92 million yuan.

In addition, the performance report indicates that Easy Health’s gross profit for 2025 was 435 million yuan, up 20.3% year-on-year, while the gross profit margin fell from 38.3% in 2024 to 34.6% by the end of 2025.

Beneath the high revenue growth, what strategic layout and business structure changes are hidden within Easy Health? In the accelerating integration of AI (artificial intelligence) and health management, what adjustments has Easy Health made?

Clearing Listing Costs

Changing Business Structure

From Easy Health’s latest 2025 performance report, there is a contradiction of “increasing revenue without increasing profit” reflected on the balance sheet; what is the reason behind this? In response, the company explained in the annual report that the loss from continuing operations for 2025 was mainly due to the fair value changes of convertible redeemable preferred shares.

Data also shows that the fair value change of Easy Health’s convertible redeemable preferred shares increased significantly from 50.37 million yuan as of the end of 2024 to 404 million yuan for 2025, primarily because the convertible redeemable preferred shares were converted into common stock after Easy Health successfully went public.

Industry analysts pointed out that Easy Health was listed in December 2025 and needed to re-estimate the fair value of the convertible redeemable preferred shares issued before the IPO based on pre-listing valuation. The increase in company valuation led to a significant rise in the fair value of the preferred shares, resulting in a large non-cash, one-time fair value loss, which in turn affected the fluctuations in net profit for 2025, but does not indicate a deterioration in the company’s operational performance.

In addition to the interference of the fair value changes of preferred shares, Zhongbao Xinzhi noted that the increase in listing expenses and sales and marketing costs also became a “major cost item” for Easy Health. The annual report indicates that with the company’s successful listing, its listing expenses rose from 12.09 million yuan in 2024 to 55.02 million yuan in 2025.

During the same period, Easy Health’s sales and marketing expenses increased by 34.6% from 159 million yuan in 2024 to 213 million yuan. The company explained in the annual report that this was mainly due to an increase in promotional expenses and the number of sales and marketing personnel driven by business expansion.

Of course, compared to the fair value changes of convertible redeemable preferred shares and short-term costs like listing expenses, the industry is more concerned about the business revenue performance that affects Easy Health’s long-term operational development.

Data shows that Easy Health’s revenue for 2025 was 1.256 billion yuan, a year-on-year increase of 32.9% compared to 945 million yuan in 2024. In terms of revenue composition, the company mainly has two major segments: health services and insurance services.

Among them, the health services segment has become the main revenue contributor, with a significant year-on-year increase of 50.2% to 926 million yuan, accounting for 73.76% of revenue; the insurance-related services segment’s revenue grew by 1.6% to 326 million yuan.

Speaking of business structure, it should be noted that the transformation of Easy Health’s main business structure, which initially started with internet crowdfunding, is closely related to its divestment of the Easy Fundraising business in 2024. Its current development positioning is a tech-driven one-stop platform, focusing on providing comprehensive health services and health insurance solutions.

High Growth in Health Services

But Overall Gross Margin is Low

Further understanding reveals that Easy Health’s health services are mainly divided into four major areas: digital marketing (popular science services), digital medical research assistance, comprehensive health service packages, and early disease screening-related promotion and consulting services.

Among them, digital marketing services have become the main revenue and growth driver, contributing 713 million yuan in revenue in 2025, a significant increase of 52.1%.

However, when measuring the key indicator of a company’s profitability, the “gross margin,” Easy Health’s health services segment, despite maintaining high growth, shows an overall low gross margin. The annual report indicates that the company’s gross margin dropped from 38.3% at the end of 2024 to 34.6%, primarily due to an increase in the proportion of revenue from health-related services, which typically have a lower gross margin.

Looking at the insurance services segment, which contributes a higher gross margin, Easy Health’s gross margin for insurance brokerage services decreased from 55.7% in 2024 to 49.7% in 2025, while the gross margin for insurance technology services increased from 96.4% to 97%. The annual report shows that the decrease in the gross margin for insurance brokerage services is related to a decline in the number of policies generated and the average premium per policy.

Easy Health admitted in the annual report that the decrease in the number of policies was attributed to the increased difficulty in acquiring new customers; while the decline in the average premium per policy stemmed from the company offering lower premium products to attract new customers, leading to a reduction in the annualized premium of products aimed at new customer acquisition.

Competing in the AI Space

Has Started “Shrimp Farming”

It can be seen that a major driving force behind Easy Health’s performance points to AI capabilities. In fact, there has been no shortage of players in the AI field, and many insurance institutions have been competing in this space in recent years, with Easy Health being one of them.

On the technical side, Easy Group has frequently showcased its proprietary AI technology stack “AIcare” over the past two years. According to the latest financial report, AIcare consists of five core modules, each applied to specific business areas, directly generating revenue.

For example, in digital medical research assistance, the company utilizes the Magellan (i-Magellanic) medical digital platform to provide drug companies with full lifecycle services covering research protocol design, physician education, clinical research, and post-marketing studies. In 2025, the revenue from corresponding digital medical research assistance services exceeded 41 million yuan, a year-on-year increase of 29.5%.

Behind the technology as the platform’s pillar is ongoing investment in research and development. The financial report shows that Easy Health’s R&D expenses for 2025 were 75.589 million yuan, a year-on-year increase of 5%. By the end of the reporting period, the company’s dedicated R&D team accounted for 40.4% of the total workforce. According to previous prospectus disclosures, Easy Health’s R&D investment has significantly increased over the past three years, rising from 52.8 million yuan in 2022 to 72 million yuan in 2024, indicating the group’s continued emphasis on technological research and development.

In March of this year, an AI agent named OpenClaw (commonly referred to as “shrimp”) swept across the Chinese internet, and “shrimp farming” became another viral AI buzzword after DeepSeek; Easy Health has also embedded this AI technology into its business.

The group disclosed in its financial report that in March of this year, it launched the evidence-based medicine AI agent “QSevidence” alongside the “QSevidence·MedClaw Collaboration System” — a medical AI collaboration system constructed through the deep integration of QSevidence with the OpenClaw multi-agent framework, covering key scenarios such as evidence-based clinical decision support, guideline consistency comparison, case discussions, and research assistance, achieving a full closed-loop from task decomposition, evidence retrieval, guideline comparison, conclusion generation to process archiving.

Industry insiders have stated that for the capital market, this progressive relationship is more meaningful than simply releasing an AI product. It shows that Easy Health’s AI has evolved from content, marketing, user management, and research assistance all the way to medical intelligent agents.

Confident in Industry Growth Potential

Re-launching “Health + AI” Dual Engine Strategy

As health-related services continue to expand, and AI capabilities become productized and platformed, Easy Health is entering a new phase of moving from “platform scale growth” to “platform capability realization.” However, the group also faces new challenges and scrutiny, such as post-listing shareholder dividend issues and how to maintain sustainable profitability. The group stated in its 2025 financial report that, as of December 31, 2025, and 2024, the company did not pay or recommend any dividends to ordinary shareholders.

Looking ahead to future industry developments, Easy Health stated that despite uncertainties in the macro environment, it remains confident in the growth potential of China’s digital health services industry.

Regarding its next steps, Easy Health mentioned in the annual report that it will continue to advance the “Health + AI” dual engine strategy in 2026, focusing on five directions: including continuously upgrading the AIcare technology stack, deepening the application of generative AI in health popularization, medical research assistance, intelligent health advisory, and other scenarios; further enriching integrated health service packages, expanding insurance and corporate health service scenarios; increasing the scale of digital marketing and popular science services; enhancing real-world research and clinical data service capabilities; and improving overall operational efficiency and profitability through an AI-driven intelligent operation platform.

“We must cautiously respond to the challenges posed by macroeconomic uncertainties, including fluctuations in consumer willingness to spend on healthcare and policy changes within the pharmaceutical industry. We will continue to monitor changes in the external environment and dynamically adjust our business strategies to ensure steady growth and long-term sustainable development,” stated Easy Group.