Xikang Cloud Hospital Announces 2024 Annual Results: Deep Integration of Three Business Segments Rebuilds the Healthcare and Nursing Ecosystem
In 2024, driven by the global wave of digital transformation, the healthcare industry is undergoing a profound shift from being “disease-centered” to “health-centered,” thereby reshaping the industrial ecosystem. To better seize market opportunities, Xikang Cloud Hospital (09686.HK) has deeply optimized its business structure and resource allocation, focusing on the strategy of “home-based medical and nursing services.” It continues to strengthen the synergistic effects among its three major business segments, meeting users’ service needs across settings—from in-hospital to out-of-hospital, and from offline to online.
On March 20, Xikang Cloud Hospital released its 2024 annual performance announcement. According to the announcement, the company generated revenue of approximately RMB 501 million in 2024; gross profit was approximately RMB 147 million, with a gross margin of about 29.4%; adjusted net loss was approximately RMB 75 million, representing a significant year-on-year narrowing of 34.8%, indicating an accelerated path toward profitability. The company’s full-year financial position improved markedly, with net operating cash flow turning positive for the first time at approximately RMB 21.56 million.
Building the “Urban Cloud Hospital Platform,” with cities as entry points and close integration with regional healthcare systems, is the core business model upheld by Xikang Cloud Hospital. On this foundation, the company has successfully established a digital healthcare ecosystem connecting governments, medical institutions, patients, and insurance providers, enabling precise matching and efficient utilization of medical resources.
Since establishing and operating China’s first urban cloud hospital platform in Ningbo, XIKANG Cloud Hospital has, through more than a decade of dedicated development, formed a complete, mature, and verifiable business replication model, which has been rapidly scaled to other cities. Driven by its cloud hospital business model, the company has continuously explored and implemented innovative applications of AI technology and smart healthcare management systems, significantly accelerating business expansion. In 2024, the urban cloud hospital platform achieved steady growth through sustained market penetration in key regions including East, North, and South China.
As of December 31, 2024, more than 36,000 medical institutions were connected to the Xikang Cloud Hospital platform network, including 2,986 hospitals, representing a year-on-year increase of 14.4%; there were 142,000 registered physicians, a year-on-year increase of 9.3%; and 130,000 registered nurses (with over five years of clinical nursing experience), marking a significant year-on-year surge of 89.2%.
Leveraging the cloud hospital business model, XIKANG Cloud Hospital completed the integration and adjustment of its business architecture in the first half of 2024, aligning with its strategic positioning and competitive advantages. It elevated its rapidly growing home care services to an independent business segment, highlighting their strategic value to the company. This restructuring established three core pillars: “Medical Services, Nursing Services, and Health Management Services,” further clarifying its primary business focus and strengthening its competitive edge, thereby effectively optimizing its business structure.
Under the continued leadership of the cloud hospital model and business focus strategy, XIKANG Cloud Hospital has achieved steady quality improvement in its overall business, with strong development and significant growth in strategic businesses.
Medical services constitute the core revenue source for Xikang Cloud Hospital. Focusing on patients’ post-discharge and at-home medical care needs, it fully integrates urban medical service ecosystem resources to provide users connected to the city cloud hospital platform with convenient, high-quality, safe, and reliable home-based medical services that match the quality of in-hospital care.
Leveraging “integrated online-offline medical services” and “full-cycle healthcare management covering pre-hospital, in-hospital, and post-hospital stages,” Xikang Cloud Hospital continuously optimized healthcare service processes and patient experience in 2024, while further enriching the scenarios and content of home-based medical services. Building on strengthened development and operations of its internet hospital, the company deepened its focus on “cloud platform-based telemedicine,” further tapping into its service advantages and innovatively launching “remote outpatient consultation” services, offering one-on-one video consultations with top experts from China’s top 100 hospitals.
Furthermore, Xikang Cloud Hospital is accelerating the application of AI technology in medical services by launching the “Intelligent Doctor Assistant.” This initiative integrates AI into every link of the healthcare service chain, including intelligent triage, pre-consultation inquiries, patient medical records, diagnostic recommendations, and medication guidance. These efforts further assist medical institutions in optimizing patient care pathways, enhancing consultation efficiency, and improving the overall patient experience, thereby achieving a deep integration of next-generation digital technologies with healthcare services.
While focusing on innovation in service products, the company has started from the perspective of user medical experience to deeply leverage the advanced technologies, expertise, resources, and customer base advantages of its business partners. It has continuously iterated and upgraded its cloud hospital platforms in multiple cities, including Shenyang and Nanning, thereby enhancing the efficiency with which the platform connects healthcare institutions to deliver medical services. This strategy strengthens stickiness with government and hospital clients, improves institutional service capabilities, and ensures that end-users receive convenient and efficient medical care. As of December 31, 2024, the company had assisted 197 hospitals in establishing internet hospitals through its cloud hospital platform.
Driven by innovations in service products and improved operational efficiency, Xikang Cloud Hospital’s internet medical services achieved steady growth in 2024. In 2024, the Company’s internet medical service volume exceeded 4.944 million visits, representing a year-on-year increase of 20.8%. Among these, online consultation services accounted for 2.460 million visits, up 49.3% year-on-year; laboratory and diagnostic testing services reached 515,000 visits, surging 98.0% year-on-year; electronic prescription services totaled 785,000 visits, an increase of 7.7% year-on-year; and telemedicine services amounted to 1.184 million visits. The revenue from medical services for the full year was RMB 217 million, accounting for 43.2% of total revenue.
Since pioneering the “Home Nursing Services” innovation pilot in Ningbo in 2016, Xikang Cloud Hospital has accumulated mature operational models and earned strong market recognition in the home nursing industry, establishing the “Xikang Nursing” brand with its services extending across East, Central, South, and Southwest China. Leveraging AI technology to empower data analytics, intelligent services, and personalized nursing guidance, the company has not only achieved significant growth in the scale of its nursing services but also made substantial progress in user stickiness and user experience.
Currently, Xikang Cloud Hospital has undertaken the construction and operation of multiple official “Internet + Nursing Services” platforms at the provincial and municipal levels, enabling local residents to access high-quality home nursing services within covered areas. In 2024, the company continued to expand and deepen its platform construction and service operations for home nursing initiatives, including Zhejiang Province’s “Zheli Nursing,” Henan Province’s “Yujian Home Nursing,” Shenyang City (Liaoning Province)’s “Shengqing Nursing,” Nanning City (Guangxi Zhuang Autonomous Region)’s “Nanning Cloud Hospital Home Nursing,” and Xuancheng City (Anhui Province)’s “Xuanhui Nursing,” reaching a population of over 200 million. Notably, the “Yujian Home Nursing” platform achieved full coverage across all 18 prefecture-level cities in Henan Province within six months. As of December 31, 2024, the platform had integrated 536 medical institutions and onboarded 47,000 nurses.
Meanwhile, by leveraging AI technology to continuously optimize service operational efficiency and user experience, Xikang Cloud Hospital has implemented AI-driven intelligent service recommendations and AI-powered customer service, further enhancing user satisfaction with home nursing services. In 2024, the company comprehensively launched its intelligent service assistants, “Zhe Xiaohu” and “Xi Xiaohu,” providing users with smart, rapid, and efficient service guidance. Additionally, the company has been continuously exploring the integration of multi-level service scenarios and innovating service content, extending its home nursing and rehabilitation service offerings. As of December 31, 2024, the number of service items had increased to over 200, thereby meeting more diverse and comprehensive nursing and health needs.
With the increased application of AI, informatization, and other technologies, Xikang Cloud Hospital has leveraged professional operations and data-driven management to drive sustained business growth in existing regions and facilitate rapid replication and scale-up in newly expanded areas, resulting in a significant increase in paying nursing care users. As of December 31, 2024, the volume of home-based nursing services exceeded 332,000 visits, representing a year-on-year increase of 114.9%. Among these, home-based nursing services in Zhejiang Province exceeded 261,000 visits, up 115.6% year-on-year. The volume of nursing consultation services surpassed 324,000 visits, marking a 64% year-on-year increase. For the full year, revenue from nursing services reached RMB 56 million, a substantial year-on-year increase of 77.7%, accounting for 11.2% of total revenue.
By establishing an integrated online-to-offline health management service system covering the entire lifecycle, Xikang Cloud Hospital provides users with continuous, comprehensive, and professional one-stop health management services. As of December 31, 2024, the company operated nine medical institutions across nine cities in China, with its layout primarily concentrated in East, North, and South China.
To continuously strengthen and consolidate the strategic synergy of health management services, in 2024, Xikang Cloud Hospital actively developed an integrated “Health Management+” service model tailored for both institutional and individual clients, aiming to provide more comprehensive, diversified, and continuous health management solutions. For institutional clients, the company focused on enhancing product and service integration within enterprise health management scenarios, thereby helping businesses better care for their employees’ health.
Furthermore, we continue to deepen our dual expansion strategy targeting both institutional and individual clients, thoroughly uncovering the core needs of these two major customer segments to explore new growth drivers for health management revenue. By leveraging “AI + Health Management,” we optimize the service experience across the entire process, creating AI-powered scenarios such as customized package recommendations, intelligent examination guidance, smart report interpretation, and health record analysis, thereby providing users with more intelligent and precise personal health management solutions.
Despite intense market competition, XIKANG Cloud Hospital’s health management services business maintained steady growth in 2024, serving a total of 569,000 individuals throughout the year. Institutional clients constituted the primary customer base, accounting for 89.1% of the total. The annual revenue from health management services reached RMB 229 million, representing 45.6% of the company’s total revenue.
At the recently concluded 2025 Two Sessions, the third phase of the Healthy China strategy, a highly prominent topic in the Government Work Report, is leading China into a new era of universal health. According to a report released by the China Consumers Association, the market size of China’s general health industry is projected to reach RMB 17.4 trillion by 2025 and surpass RMB 29.1 trillion by 2030. Driven by upgraded health consumption awareness, supportive national policies, and continuous breakthroughs in digital technologies such as AI, the healthcare industry is poised for significant opportunities in intelligent and inclusive upgrading.
Amidst the significant opportunities of the era, as the pioneer of China’s urban cloud hospital model and the leader in the digital transformation of serious medical care, XIKANG Cloud Hospital will closely align with the core trends of “AI + Full-Course Disease Management” and “Universal Access to Home-Based Medical Care” in internet healthcare. It will deepen the construction of its “home-based medical and nursing care service” network, orderly promote business diversification, further enhance comprehensive competitiveness, and continuously contribute to the high-quality development of the medical and health ecosystem.