The mid-term results of Spike Health (00314) turned losses into profits: strategic transformation showed results, and the corporate insurance service landscape continued to expand

At the beginning of 2026, the “Report on the Work of the Government” proposed “speeding up the development of commercial health insurance”. In the context of deepening collaboration between medical insurance and commercial insurance, the trend of integration of commercial health insurance, health management, medical services, etc. is further evident, and the demand for comprehensive health insurance services from enterprise customers continues to develop.

Recently, Spike Health (00314) announced the 2026 interim results. Financial reports show that in the first half of 2026, the company achieved total revenue of about RMB 740 million and IFRS net profit of RMB 42.92 million, which turned a loss into a profit compared to a net loss of RMB 81.1 million for the same period in 2025; normalized net profit was RMB 6.87 million, which was corrected from the normalized net loss of RMB 12 million in the same period in 2025.

The company previously issued an announcement on August 4. It is expected to achieve net profit of about 41 million yuan to 44 million yuan in the first half of 2026. The actual net profit disclosed in this interim results was approximately 42.9 million yuan, which is in line with previous expectations. Since the release of Yingxi's announcement, the company's overall stock price has been rising. As of August 21, it closed at HK$1.53, an increase of 13.3% during the month. Overall, the improvement in the company's performance mainly comes from factors such as core business growth, business structure optimization, and operational efficiency improvements brought about by strategic transformation.

Strategic transformation has achieved phased results, and profitability has been further improved

In the first half of 2026, Spai Health officially turned a loss into a profit, marking a key milestone in the company's strategic transformation.

Affected by the active contraction of specialty pharmacies and Huimin Insurance businesses, the company's total revenue for the first half of the year decreased by 39.6% year-on-year to RMB 740 million. However, as the share of high-margin core businesses increased, overall gross margin increased from 14.4% in the same period in 2025 to 20.1%, up 5.7 percentage points year-on-year; IFRS net profit was RMB 42.92 million, normalized net profit was RMB 6.87 million, and operating profit, normalized net profit, and IFRS net profit were all corrected.

At the same time, the cash flow situation has also improved. The net cash outflow from operating activities in the first half of the year narrowed from RMB 63.47 million to RMB 26.63 million in the same period in 2025, reflecting the steady pace of the company's operations and the gradual improvement of its own hematopoietic capacity.

While the revenue scale was actively adjusted, the company's two core business segments continued to grow, and the revenue structure was further optimized.

Among them, corporate insurance service revenue was approximately RMB 58.93 million, an increase of 37.7% over the previous year. As of June 30, 2026, the company's operating premiums were about RMB 1.17 billion, an increase of about 35% over the previous year; the number of corporate customers reached 693, an increase of 74 compared to 619 at the end of 2025; it served about 2.13 million employees and families, and the medical and pharmaceutical service network covered more than 300,000 service outlets. As the number of customers and service network continues to expand, the scale base of this business has been further consolidated.

The Doctor Research Assistance business continued to maintain steady growth, with revenue of approximately RMB 250 million in the first half of the year, an increase of 16.0% over the previous year. Spay's main business of doctors' research assistance is New Drug Clinical Trial Site Management (SMO), which is also an area of business that Spay has been deeply involved in since 2014. According to the company's interim results announcement, as of June 30, 2026, the company has completed a total of 1,268 SMO projects and implemented 925 projects. The service customer base covers all top ten listed pharmaceutical companies in the field of innovative drug research and development in China, and the top ten customer retention rates have reached 100%. The company said that the business is not only in a leading position in the SMO industry, but also forms a collaboration with the life science insurance brokerage business recently laid out by the company.

Taken together, the current interim results show that while the company actively adjusted its business structure, its core business continued to grow, and its profitability and cash flow situation improved. As strategic adjustments continue to advance, the company's future business performance still requires further implementation of core business growth, operating efficiency and new business layout.

Extend the business layout around corporate insurance needs

At the same time as the corporate health insurance business is developing, Spike Health is also further expanding its business related to corporate insurance brokerage and risk management. In the first half of 2026, the company established a large-scale enterprise risk management department, reinsurance division and life science division, and introduced relevant professionals to gradually establish service capabilities covering large-scale enterprise risk management, property insurance, liability insurance, life science insurance, reinsurance and cross-border insurance.

Judging from the business layout, the company is gradually building a comprehensive service system with enterprise health insurance as an entry point and enterprise risk management as an extension. With the continuous improvement of related business capabilities, the company is expected to further strengthen collaboration among different insurance services and provide more comprehensive risk protection solutions for enterprise customers, especially medium and large enterprises.

At the same time as the organizational structure is being adjusted, the company is also promoting the acquisition of Health Information Technology. The company announced in March 2026 that it is promoting the acquisition of health information technology, a professional insurance technology and enterprise healthcare management service company. According to reports, Health Medicine is connected to more than 200 insurance institutions and nearly 300,000 medical service points, and has real-time claims settlement and AI data cleaning and processing capabilities. If the relevant acquisition is completed, it is expected to help enrich the enterprise health management product matrix, enhance digital operation and claim settlement capabilities, and further strengthen data processing capabilities.

For the specialty pharmacy sector, the company continues to promote business restructuring, focusing on improving quality and efficiency, reducing the use of working capital, and investing more resources in core insurance business, professional talent introduction, digital construction, and industrial mergers and acquisitions.

In terms of the pharmaceutical service model, Spai's business focus is gradually shifting from expanding pharmacy stores to integrating integrated operations across the country's high-quality networks. The company disclosed that at present, the pharmaceutical service layout has been upgraded from nearly 100 self-operated stores to a nationwide network of 300,000 “ownership+cooperative” pharmacies. Pharmaceutical services assume more of the supporting service infrastructure functions for corporate insurance members, achieving a closed loop of “insurance, health, medicine, and medicine” services, taking into account service accessibility and overall operating efficiency.

Looking forward to the future, the company will continue to focus on core businesses such as corporate health insurance and corporate insurance brokerage, improve the medical and health service system for enterprise employees and their families, promote related business layout according to market demand, and gradually expand enterprise risk management service capabilities.

Overall, in the first half of 2026, Spike Health turned a loss into a profit. The core business continued to grow, and both gross margin and operating cash flow improved, indicating that the previous business restructuring achieved phased results. In the future, whether the company can continue to grow its core business, further improve profitability, and transform the new business layout into actual performance will be the focus of the market's continuous attention.