消息上，近期互联网医疗行业迎来多重利好消息，涉及政策支持、技术创新、市场表现及企业合作等多 个方面。 2025年7月，国家药监局发布《优化全生命周期监管支持高端医疗器械创新发展有关举措》，重点支持 AI影像诊断、手术机器人、脑机接口等创新医疗器械发展，并加快制定相关技术标准。北京市"AI+医 药健康"行动计划：提出到2027年构建"人工智能+医药健康"创新生态体系，推动30个以上核心技术和创 新产品落地转化。 港股互联网医疗股拉升走高，其中，平安好医生涨近9%领涨且刷新阶段新高 ，阿里健康涨超4%，京东 健康涨3.4%。 有分析指出，总体来看，互联网医疗行业在政策、技术、资本和市场需求的共同推动下，正迎来快速发 展期，未来在AI诊疗、远程医疗、数字疗法等领域仍有较大增长空间。(格隆汇） | 代码 | 名称 | 最新价 | 涨跌幅 √ | | --- | --- | --- | --- | | 01833 | 平安好医生 | 11.740 | 8.70% | | 00241 | 阿里健康 | 5.060 | 4.33% | | 06618 | 京东健康 | 51.650 | 3.40% | | 06086 | ...

港股科网股集体上涨，百度(09888.HK)、BOSS直聘(02076.HK)、快手(01024.HK)涨超3%，阿里健康 (00241.HK)、京东(09618.HK)、贝壳(02423.HK)涨超1%。 ...

Core Viewpoint - The article discusses the rapid growth and potential of AI in healthcare, highlighting its transformative impact on patient management and the healthcare system in China, while also addressing the challenges and limitations faced by AI technologies in this sector [2][4][10]. Group 1: AI in Healthcare Services - AI services are increasingly being adopted by patients for health management, with applications such as report interpretation and intelligent triage leading the trend [2][3]. - Major internet companies like JD Health, Alibaba Health, and Baidu Health are actively developing independent AI health management applications, indicating a competitive landscape [3][4]. - The AI health management market in China is projected to reach 25.9 trillion yuan by 2027, with a compound annual growth rate exceeding 20% [4]. Group 2: Impact on Traditional Healthcare - AI technologies are significantly changing the traditional healthcare system, allowing hospitals to serve a larger number of patients efficiently [5][10]. - AI can alleviate the burden on healthcare professionals by handling repetitive tasks, thus improving overall service efficiency [7][10]. - The integration of AI into healthcare aims to create a closed-loop system that connects various healthcare services, enhancing data collection and patient management [7][10]. Group 3: Challenges and Limitations - Despite the potential benefits, there are significant challenges in gaining public trust in AI healthcare solutions, with only 3.59% of people believing AI can fully replace doctors [13][14]. - The complexity of integrating AI into healthcare requires deep collaboration with medical professionals to ensure the accuracy and reliability of AI systems [14][15]. - Legal and regulatory challenges, particularly concerning data privacy and the definition of responsibility in AI applications, pose significant hurdles for the industry [15][16].

Core Insights - The Hong Kong pharmaceutical sector is experiencing a strong rally, with the China Securities Hong Kong Stock Connect Pharmaceutical and Health Comprehensive Index (930965) rising by 1.50% as of July 16, 2025, driven by significant gains in individual stocks such as Lijun Pharmaceutical (01513) up 11.16% and Green Leaf Pharmaceutical (02186) up 8.55% [1][2] - The introduction of a commercial health insurance innovative drug directory by the National Healthcare Security Administration on July 11, 2025, marks a significant development, allowing for the inclusion of high-innovation drugs that exceed basic insurance coverage [1][2] - The first innovative drug directory involving commercial insurance is expected to be launched within 2025, potentially creating a more favorable pricing environment compared to traditional medical insurance negotiations [2] Industry Summary - The Hong Kong Medical ETF (513700) has seen a 1.72% increase, marking its fourth consecutive rise, with the latest price reported at 0.65 yuan [1] - The index reflects the performance of 50 liquid and large-cap healthcare companies within the Hong Kong Stock Connect, with the top ten weighted stocks accounting for 59.44% of the index [2] - The commercial health insurance sector is anticipated to experience significant growth, with potential for premium and innovative drug payment scales to increase by several multiples in the long term [2]

Group 1 - The Hang Seng Index (HSI) shows a significant rebound, with bullish investors expecting it to rise to 25,000, supported by a recovery price of 24,020 for overnight bull certificates [1] - Alibaba (09988.HK) has potential upward movement, with bullish investors targeting a price of 130 HKD, while the stock closed at 113.5 HKD, reflecting a 6.97% increase [3] - Bilibili-W (09626.HK) has broken through the upper Bollinger Band at 182 HKD, closing at 184.9 HKD, indicating a "buy" signal with resistance levels at 194.5 HKD and 200 HKD [6] Group 2 - NetEase-S (09999.HK) shows signs of a rebound, with a "buy" signal and resistance levels at 216 HKD and 224 HKD, suggesting that options with a strike price around 220 HKD may be more favorable [9] - Sunny Optical Technology (02382.HK) is experiencing upward momentum, closing near the upper Bollinger Band at 76.4 HKD, with a strong buy signal and resistance levels at 78.4 HKD and 82.3 HKD [12] - Alibaba Health (00241.HK) has risen for six consecutive days, with resistance levels at 4.8 HKD and 5.13 HKD, and options with a strike price of 4.51 HKD are considered reasonable [15]

Group 1 - The Hang Seng Index and Hang Seng Tech Index both rose over 1% during the day [1] - Anta Sports (02020.HK) increased by over 4.5% [1] - Baidu (09888.HK) saw a nearly 4% rise [1] Group 2 - Alibaba (09988.HK), Trip.com Group (09961.HK), and Alibaba Health (00241.HK) all experienced gains of over 3% [1]

Investment Rating - The report indicates a positive investment outlook for the AI healthcare industry, highlighting significant growth potential and increasing investment activity in the sector [3][10][46]. Core Insights - The AI healthcare sector is entering a new phase characterized by multi-modal integration and practical applications, driven by advancements in large models and generative AI [3][7]. - Clinical decision support and drug development are leading the commercialization efforts, while health management remains an area with untapped potential [3][14]. - The report emphasizes the importance of third-party vendors in reducing model hallucination rates and enhancing the reliability of AI applications in healthcare [3][18][21]. Summary by Sections AI Healthcare Trends - The industry is experiencing heightened investment interest and technological advancements, with major players accelerating their presence in the AI healthcare space [9][10][13]. - The integration of AI into clinical workflows is becoming standard, with AI-assisted diagnosis systems deployed in 89% of tertiary hospitals [8][14]. AI Healthcare Application Penetration - AI applications are diversifying across clinical diagnosis, drug development, health management, and AI for science (AI4S), with varying levels of maturity and market potential [30][31]. - The report identifies key areas of application, including intelligent clinical decision support, drug discovery, and personalized health management [36][39]. Key Companies in AI Clinical Diagnosis - Companies like Tempus AI and 嘉和美康 are leading in AI-assisted clinical diagnosis, focusing on electronic medical records and data-driven healthcare solutions [47][51]. - The report highlights the importance of data barriers and scenario positioning in determining the value of AI diagnostic tools [3][46]. Key Companies in AI Health Management - Companies such as 阿里健康 and 京东健康 are leveraging AI to enhance online healthcare services, with a focus on chronic disease management and personalized health plans [39][44]. - The report notes that the integration of insurance and healthcare services is crucial for the growth of AI health management solutions [39][44]. Key Companies in AI Drug Development - The report discusses the role of AI in accelerating drug development processes, with companies like Recursion and 晶泰控股 focusing on preclinical research and drug discovery [38][44]. - AI is expected to significantly reduce the time and cost associated with traditional drug development methods [38][44]. AI4S and Broader Applications - AI4S is identified as a growing field with applications in various scientific domains, including life sciences and materials science, although it faces longer conversion cycles [42][44]. - The report emphasizes the need for innovative approaches to data generation and modeling in AI4S applications [42][44].

Group 1 - The top three companies with the highest short positions are WuXi AppTec (22.57%), CATL (17.76%), and COSCO Shipping Holdings (14.27%) [1][2] - The companies with the largest absolute increase in short positions are Alibaba Health (4.45%), China Liansu (2.54%), and Hong Kong Travel (2.02%) [1][2] - The companies with the largest absolute decrease in short positions are Far East Horizon (-1.62%), ZhongAn Online (-1.55%), and Rongchang Biologics (-1.32%) [1][3] Group 2 - The latest short position data shows that WuXi AppTec has 87.35 million shares, CATL has 27.69 million shares, and COSCO Shipping Holdings has 411 million shares [2] - Alibaba Health's short position increased from 6.97% to 11.42%, while China Liansu's increased from 0.61% to 3.15% [2] - Far East Horizon's short position decreased from 4.43% to 2.82%, and ZhongAn Online's decreased from 7.43% to 5.88% [3][4]

[Chairman's Report](index=6&type=section&id=Chairman%27s%20Report) [Pharmaceutical E-commerce Business](index=7&type=section&id=Chairman%27s%20Report-Pharmaceutical%20E-commerce%20Business) The pharmaceutical e-commerce business solidified its industry-leading position by optimizing the supply chain and integrating marketing services for multi-driven growth - Signed strategic collaborations with multiple renowned pharmaceutical companies to enhance drug accessibility in outpatient and lower-tier markets, expanding online retail, product categories, and new drug launches[12](index=12&type=chunk) - After acquiring exclusive marketing review rights for Ali Mama's healthcare category, marketing services were integrated into a closed loop, forming a multi-driven model of "self-operated revenue + platform commission + marketing services" to enhance merchant stickiness and drive business growth[13](index=13&type=chunk) [Healthcare and Digitalization Business](index=8&type=section&id=Chairman%27s%20Report-Healthcare%20and%20Digitalization%20Business) The Group enhanced online healthcare services with AI, expanded professional talent to nearly 240,000, and advanced drug traceability Healthcare and Digitalization Business Key Metrics (As of March 31, 2025) | Business Segment | Key Metric | Data | | :--- | :--- | :--- | | **Healthcare Service Platform** | Contracted licensed physicians, pharmacists, and nutritionists | Nearly **240,000** | | **Xiaolu Traditional Chinese Medicine Business** | Registered Traditional Chinese Medicine practitioners | **140,000** | | **Xiaolu Traditional Chinese Medicine Business** | National dispensing center network | **137** | - Firmly committed to big data and AI technology as core drivers, enabling AI across the entire pharmaceutical e-commerce value chain, improving operational efficiency and GMV growth Future plans include continuous exploration of large models in healthcare services[21](index=21&type=chunk) - The "Ma Shang Fang Xin" platform actively responded to national drug traceability policies, promoting full value chain coverage for drug production, circulation, and retail pharmacies/medical institutions, enhancing supply chain transparency, security, and compliance[20](index=20&type=chunk) [Public Welfare](index=9&type=section&id=Chairman%27s%20Report-Public%20Welfare) Ali Health actively fulfilled social responsibility by focusing on vulnerable groups' health and integrating public welfare into its corporate strategy - Launched multiple public welfare initiatives, including the "Lemon Baby Care Action" to ensure access to special medical food for children with rare diseases, the "Hearing Aid Action" providing hearing tests for over **5,000** elderly individuals, and "Blind Assistance Medical Examinations" offering customized check-ups for **500** visually impaired people[25](index=25&type=chunk) - Upgraded and launched the "1–5–100 Public Welfare Program," guided by "1 Ali Health Public Welfare Forest, 5 business-related public welfare projects, and 100 employee families participating," integrating social responsibility into the corporate DNA[26](index=26&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Financial Summary](index=11&type=section&id=Business%20Review) In FY2025, the company achieved robust business growth with total revenue up 13.2% and net profit up 62.2%, driven by policy and AI Financial Highlights (FY2025, RMB) | Financial Metric | FY2025 (RMB) | Year-on-Year Growth | | :--- | :--- | :--- | | **Total Revenue** | **30.598 billion yuan** | +13.2% | | **Net Profit** | **1.432 billion yuan** | +62.2% | | **Adjusted Net Profit** | **1.950 billion yuan** | +35.6% | | **Adjusted Net Profit Margin** | **6.4%** | Up from 5.3% | Operational Highlights (As of March 31, 2025) | Operational Metric | Data | Year-on-Year Growth | | :--- | :--- | :--- | | **Tmall Health Platform - Online Key Merchants** | **48,300** | +35% | | **Tmall Health Platform - Online SKUs** | **133 million** | +91% | | **Online Self-operated Stores - Self-operated SKUs** | **1.23 million** | +33.6% | - The company's strategy is based on "Cloud Infrastructure," with "Cloud Pharmacy" as the core and "Cloud Hospital" as the engine, providing inclusive, efficient, and safe healthcare services for families[36](index=36&type=chunk) [Business Segment Performance](index=13&type=section&id=Business%20Segment%20Performance) All Group business segments made significant progress this fiscal year, with strong growth in pharmaceutical e-commerce, expanded healthcare services, and enhanced digital traceability [Pharmaceutical E-commerce Business](index=13&type=section&id=Pharmaceutical%20E-commerce%20Business) Pharmaceutical e-commerce, a core segment, achieved steady growth through platform and self-operated models, expanding services and improving logistics Pharmaceutical E-commerce Business Metrics (As of March 31, 2025) | Business Segment | Metric | Data | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | **Pharmaceutical E-commerce Platform** | Online Key Merchants | **48,300** | +35% | | **Pharmaceutical E-commerce Platform** | Online SKUs | **133 million** | +91% | | **Pharmaceutical Self-operated Business** | Revenue | **26.124 billion yuan** | +10.0% | | **Pharmaceutical Self-operated Business** | SKU Quantity | **1.23 million** | +33.6% | - Next-day home delivery service for self-operated pharmaceutical business has gradually expanded to **13** cities including Guangzhou, Ningbo, and Jinhua[45](index=45&type=chunk) [Healthcare and Digital Services Business](index=14&type=section&id=Healthcare%20and%20Digital%20Services%20Business) Healthcare services upgraded with increased professionals and AI integration, while digital traceability expanded its value chain coverage and efficiency - As of March 31, 2025, the total number of contracted licensed physicians, pharmacists, and nutritionists increased to nearly **240,000**[46](index=46&type=chunk) - Xiaolu TCM launched an AI-assisted diagnosis and treatment system based on Alibaba Cloud Bailian Platform and DEEPSEEK large models, improving doctors' auxiliary consultation efficiency[47](index=47&type=chunk) - The "Ma Shang Fang Xin" platform launched "Drug Circulation Compliance Digitalization" services, serving over **1,500** manufacturing enterprises and over **7,100** distribution enterprises, with over **8.5 million** electronic drug inspection reports cumulatively sent[50](index=50&type=chunk) [Financial Review](index=17&type=section&id=Financial%20Review) In FY2025, the Group's total revenue grew 13.2% to 30.60 billion yuan, with gross profit up 26.1% and net profit surging 62.2% to 1.43 billion yuan Consolidated Financial Performance (RMB '000) | Financial Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | **30,598,292** | 27,026,555 | 13.2 | | **Gross Profit** | **7,432,091** | 5,895,321 | 26.1 | | **Profit Before Tax** | **1,559,968** | 939,399 | 66.1 | | **Profit for the Year** | **1,432,014** | 883,136 | 62.2 | | **Profit Attributable to Owners of the Parent** | **1,432,427** | 883,477 | 62.1 | | **Adjusted Net Profit** | **1,949,673** | 1,437,928 | 35.6 | Revenue by Segment (RMB '000) | Revenue Segment | 2025 (RMB '000) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | **Pharmaceutical Self-operated Business** | **26,124,420** | 10.0 | | **Pharmaceutical E-commerce Platform Business** | **3,588,499** | 54.0 | | **Healthcare and Digital Services Business** | **885,373** | -7.6 | - Gross margin increased by **2.5** percentage points to **24.3%**, primarily due to optimized operational efficiency and enhanced pricing power from refined operations and digital upgrades[66](index=66&type=chunk) - Fulfillment expenses as a percentage of self-operated pharmaceutical business revenue decreased from **10.2%** to **9.8%**, reflecting improved operational efficiency in warehousing, logistics, and customer service[69](index=69&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Financial%20Resources%2C%20Liquidity%20and%20Foreign%20Exchange%20Risk) As of March 31, 2025, the Group maintained robust liquidity with 2.22 billion yuan in cash, positive operating cash flow, and zero debt Cash Flows (For the Year Ended March 31, RMB '000) | Cash Flow Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | **Net Cash Flows from Operating Activities** | **1,395,033** | 1,079,832 | | **Net Cash Flows Used in Investing Activities** | **(2,596,482)** | (4,880,900) | | **Net Cash Flows Used in Financing Activities** | **(72,517)** | (1,982,395) | | **Cash and Cash Equivalents at Year-End** | **2,218,296** | 3,490,169 | - As of March 31, 2025, the Group had **no outstanding borrowings**, resulting in **no debt-to-capital ratio**[94](index=94&type=chunk) - The Group has **no foreign exchange hedging policy**, but management will closely monitor exchange rate fluctuations to keep risks at a minimum level[99](index=99&type=chunk) - The Board does **not recommend** the payment of a final dividend for the reporting period[107](index=107&type=chunk) [Report of the Directors](index=26&type=section&id=Report%20of%20the%20Directors) [Share Award Scheme](index=33&type=section&id=Share%20Award%20Scheme) The company operates 2014 and 2024 Share Award Schemes to incentivize contributors, with the 2024 scheme authorizing 10% of issued shares - The company adopted the **2024 Share Award Scheme** on **August 30, 2024**, to replace the terminated 2014 scheme, ensuring consistency in share award practices The new scheme is valid for **ten years**[157](index=157&type=chunk) Share Award Scheme Authorized Limits | Scheme Name | Scheme Authorized Limit | Service Provider Sub-limit | | :--- | :--- | :--- | | **2024 Share Award Scheme** | **10%** of issued shares on adoption date (**1,609,173,626 shares**) | **1%** of issued shares on adoption date (**160,917,362 shares**) | - During the reporting period, new share options and restricted share units were granted to Executive Director Mr. Shen Diefan, Mr. Tu Yanwu, and Chairman Mr. Zhu Shunyan, among others[184](index=184&type=chunk) [Connected Transactions](index=47&type=section&id=Connected%20Transactions) The Group conducted various continuing connected transactions with Alibaba Group, all compliant with Listing Rules and deemed fair by independent directors Connected Transactions (Approximate RMB) | Transaction Type | Counterparty | FY2025 Expense/Revenue (Approx. RMB) | | :--- | :--- | :--- | | **Cloud Computing Services** | Alibaba Cloud | Expense **RMB 135 million** | | **Platform Services** | Taobao China, etc. | Expense **RMB 620 million** | | **Logistics Services** | Cainiao Group | Expense **RMB 126 million** | | **Shared Services** | Alibaba Network Group | Expense **RMB 277 million** | | **Framework Technical Services** | Taobao China Co. | Expense **RMB 1.093 billion** | | **Marketing Promotion Services** | Ali Mama | Expense **RMB 2.287 billion** | | **Exclusive Marketing Review Services** | Ali Mama | Revenue **RMB 1.515 billion** | - Independent non-executive directors reviewed all continuing connected transactions and confirmed they were entered into on normal commercial terms in the Group's ordinary course of business, fair and reasonable, and in the overall interest of shareholders[274](index=274&type=chunk)[318](index=318&type=chunk) - The company's auditor, Ernst & Young, issued a letter regarding the continuing connected transactions, confirming that the transactions were approved by the Board, followed pricing policies, did not exceed annual caps, and complied with agreement terms[314](index=314&type=chunk)[321](index=321&type=chunk) [Contractual Arrangements (VIE Structure)](index=58&type=section&id=Contractual%20Arrangements) The Group uses a VIE structure to control restricted businesses and obtain economic benefits due to Chinese foreign investment restrictions, with the Board deeming these arrangements crucial - The VIE structure is adopted to comply with Chinese laws restricting foreign investment in operational internet information services (requiring ICP licenses) to a shareholding ratio of no more than **50%**[275](index=275&type=chunk)[299](index=299&type=chunk) - Core contractual arrangements include: Exclusive Service Agreement, Loan Agreement, Equity Pledge Agreement, Shareholder Voting Rights Proxy Agreement, and Exclusive Call Option Agreement, ensuring that the wholly foreign-owned enterprise can effectively control the operating companies and obtain their economic benefits[287](index=287&type=chunk)[290](index=290&type=chunk)[291](index=291&type=chunk)[294](index=294&type=chunk)[295](index=295&type=chunk) Operating Companies under VIE Structure (RMB '000) | Operating Company | FY2025 Revenue (RMB '000) | % of Group | Assets as of 2025/3/31 (RMB '000) | % of Group | | :--- | :--- | :--- | :--- | :--- | | **Hongyun Jiukang** | **747,971** | 2.44% | **3,130,192** | 14.78% | | **Ali Health Hebei** | **7,859** | 0.03% | **55,602** | 0.26% | - The Board confirmed the necessity of the contractual arrangements and deemed it inappropriate to set annual caps or a three-year term for them, a view supported by independent financial advisors Independent non-executive directors also reviewed and confirmed the reasonableness of the arrangements[309](index=309&type=chunk)[311](index=311&type=chunk)[318](index=318&type=chunk) [Biographical Details of Directors and Senior Management](index=72&type=section&id=Biographical%20Details%20of%20Directors%20and%20Senior%20Management) [Directors and Senior Management Profile](index=72&type=section&id=Biographical%20Details%20of%20Directors%20and%20Senior%20Management-Summary) This section provides background and qualifications for the company's directors and senior management, including key executives and the re-designated Chairman - Executive Director and Chief Executive Officer Mr. Shen Diefan has held various senior positions at Alibaba Group and the Company, possessing extensive e-commerce and management experience[336](index=336&type=chunk) - Executive Director and Chief Financial Officer Mr. Tu Yanwu has extensive experience in financial management, auditing, and capital markets, having previously worked at Wuxi AppTec and General Motors[337](index=337&type=chunk) - Chairman Mr. Zhu Shunyan was re-designated from executive director to non-executive director effective **September 1, 2024**, having previously been an Alibaba Partner and held several presidential-level positions at UC Browser and Alibaba Group[338](index=338&type=chunk)[341](index=341&type=chunk) [Corporate Governance Report](index=77&type=section&id=Corporate%20Governance%20Report) [Board and Committees](index=77&type=section&id=Board%20and%20Committees) The company complied with corporate governance codes, maintaining a diverse eight-member Board with separate Chairman and CEO roles, and effective committees - The Board of Directors comprises **eight** directors, including **two** executive directors, **three** non-executive directors, and **three** independent non-executive directors, complying with Listing Rules requirements[361](index=361&type=chunk) - The roles of the Company's Chairman (Mr. Zhu Shunyan) and Chief Executive Officer (Mr. Shen Diefan) are clearly separated with distinct responsibilities[371](index=371&type=chunk) - The Audit Committee, Remuneration Committee, and Nomination Committee are all chaired by independent non-executive directors and held meetings during the reporting period, fulfilling their respective terms of reference[378](index=378&type=chunk)[388](index=388&type=chunk)[393](index=393&type=chunk) - The Board adopted a Board Diversity Policy; as of March 31, 2025, the Board comprised **four** male and **four** female members, ensuring a balanced gender composition[405](index=405&type=chunk) [Shareholder Rights and Communication](index=87&type=section&id=Shareholder%20Rights%20and%20Communication) The company ensures transparent shareholder communication through various channels, outlining procedures for general meetings, proposals, and dividend policy - Shareholders holding not less than **10%** of the voting rights have the right to request an extraordinary general meeting[428](index=428&type=chunk) - Shareholders holding not less than **5%** of the total voting rights or not less than **100** shareholders may propose resolutions to be moved at an annual general meeting[429](index=429&type=chunk) - The company adopted a dividend policy, where dividend decisions consider various factors including financial performance, cash flow, capital requirements, and shareholder interests[434](index=434&type=chunk) [Risk Management and Internal Control](index=93&type=section&id=Risk%20Management%20and%20Internal%20Control) [Risk Management Framework and Process](index=93&type=section&id=Risk%20Management%20Framework%20and%20Process) The Group established a three-tier risk management framework with committees and a five-stage process to support strategic, operational, reporting, and compliance objectives - The risk management organizational structure is divided into **governance layer** (Board of Directors, Audit Committee, Risk Management Committee), **management layer** (Operating Management Committee, etc.), and **executive layer** (three lines of defense)[463](index=463&type=chunk)[464](index=464&type=chunk) - The risk management process includes: **risk identification**, **risk assessment**, **risk response**, **risk monitoring**, and **risk reporting**[465](index=465&type=chunk)[467](index=467&type=chunk)[468](index=468&type=chunk) - Risk management assurance mechanisms include integrating internal controls into business processes, performance appraisals, and continuous communication and training[469](index=469&type=chunk)[473](index=473&type=chunk) [Key Risks Identified](index=98&type=section&id=Key%20Risks%20Identified) The Group identified and implemented measures for three high-level risks: legal, information technology and data security, and competition Key Risks and Mitigation Measures | Important Risk | Risk Description | Risk Response Measures | | :--- | :--- | :--- | | **Legal Risk** | Main business operates in a highly regulated environment; non-compliance or failure to adapt to policy changes may adversely affect business | Establish business process norms and internal controls, timely acquire and interpret policies, assess impact, and design response plans | | **Information Technology and Data Security Risk** | Product R&D failures, system malfunctions, or data breaches may significantly negatively impact brand reputation and business continuity | Establish standardized R&D processes, operations and maintenance management, and emergency plans, and comprehensively prevent data security risks from personnel, processes, and technology | | **Competition Risk** | Intense competition in the internet health sector; actions by major competitors and new entrants may pose threats | Closely monitor the competitive landscape, conduct in-depth analysis, and create core competitive advantages through business innovation and diversified management | [Independent Auditor's Report](index=102&type=section&id=Independent%20Auditor%27s%20Report) [Audit Opinion and Key Audit Matters](index=102&type=section&id=Independent%20Auditor%27s%20Report-Summary) Ernst & Young issued an unqualified audit opinion on the Group's FY2025 financial statements, highlighting key audit matters including investment impairment and fair value measurement - Auditor Ernst & Young issued an **unqualified audit opinion**, stating that the financial statements were prepared fairly in accordance with Hong Kong Financial Reporting Standards[493](index=493&type=chunk) - Key Audit Matters include: **Impairment of investments in associates**, **Fair value measurement of unlisted equity investments classified as financial assets at fair value through profit or loss**, and **Goodwill impairment**[495](index=495&type=chunk)[499](index=499&type=chunk)[503](index=503&type=chunk)[507](index=507&type=chunk) - For key audit matters, the auditor performed procedures including evaluating the competence of independent valuers, reviewing valuation methodologies, and assessing the reasonableness of management's assumptions[500](index=500&type=chunk)[506](index=506&type=chunk)[510](index=510&type=chunk) [Financial Statements](index=109&type=section&id=Financial%20Statements) [Consolidated Statement of Profit or Loss](index=109&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the year ended March 31, 2025, the Group reported 30.60 billion yuan in revenue, 7.43 billion yuan in gross profit, and 1.43 billion yuan in net profit Consolidated Statement of Profit or Loss (For the Year Ended March 31, RMB '000) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | **Revenue** | **30,598,292** | 27,026,555 | | **Gross Profit** | **7,432,091** | 5,895,321 | | **Profit Before Tax** | **1,559,968** | 939,399 | | **Profit for the Year** | **1,432,014** | 883,136 | | **Profit Attributable to Owners of the Parent** | **1,432,427** | 883,477 | | **Basic Earnings Per Share** | **RMB 8.91 cents** | RMB 6.29 cents | [Consolidated Statement of Financial Position](index=111&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, the Group's total assets were 21.18 billion yuan, with net assets increasing to 16.31 billion yuan Consolidated Statement of Financial Position (As of March 31, RMB '000) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | **Total Non-Current Assets** | **8,902,237** | 6,193,100 | | **Total Current Assets** | **12,276,180** | 13,512,237 | | **Total Assets** | **21,178,417** | 19,705,337 | | **Total Current Liabilities** | **4,742,172** | 5,025,458 | | **Total Non-Current Liabilities** | **123,085** | 162,275 | | **Total Liabilities** | **4,865,257** | 5,187,733 | | **Net Assets** | **16,313,160** | 14,517,604 | [Consolidated Statement of Cash Flows](index=115&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the year ended March 31, 2025, operating activities generated 1.40 billion yuan in cash, while investing activities used 2.60 billion yuan Consolidated Statement of Cash Flows (For the Year Ended March 31, RMB '000) | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | **Net Cash Flows from Operating Activities** | **1,395,033** | 1,079,832 | | **Net Cash Flows Used in Investing Activities** | **(2,596,482)** | (4,880,900) | | **Net Cash Flows Used in Financing Activities** | **(72,517)** | (1,982,395) | | **Net Decrease in Cash and Cash Equivalents** | **(1,273,966)** | (5,783,463) | | **Cash and Cash Equivalents at Year-End** | **2,218,296** | 3,490,169 | [Financial Summary](index=218&type=section&id=Financial%20Summary) [Five-Year Financial Summary](index=218&type=section&id=Financial%20Summary-Summary) This section presents the Group's five-year financial summary, showing steady revenue growth, a return to profitability, and increasing assets Five-Year Financial Summary (For the Year Ended March 31, RMB '000) | Item | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Performance** | | | | | | | Revenue | **30,598,292** | 27,026,555 | 26,763,016 | 20,577,616 | 15,518,468 | | Profit/(Loss) Before Tax | **1,559,968** | 939,399 | 550,994 | (252,514) | 401,219 | | Profit/(Loss) for the Year | **1,432,014** | 883,136 | 536,509 | (268,041) | 342,444 | | **Assets and Liabilities** | | | | | | | Total Assets | **21,178,417** | 19,705,337 | 20,747,820 | 19,201,997 | 17,739,495 | | Total Liabilities | **(4,865,257)** | (5,187,733) | (5,600,621) | (5,132,145) | (3,458,171) | | Equity Attributable to Owners of the Parent | **16,312,179** | 14,544,212 | 15,173,573 | 14,096,039 | 14,301,670 |

Market Performance - As of July 10, 2025, the CSI Hong Kong Internet Index (931637) decreased by 0.06%, with mixed performance among constituent stocks [3] - Leading gainers included Beike-W (02423) up 5.71%, China Ruoyi (00136) up 4.67%, and Lion Group (02562) up 4.34%, while leading decliners were Kingsoft (03888) down 2.65%, Yimaitong (02192) down 2.30%, and Reading Group (00772) down 1.96% [3] - The Hong Kong Internet ETF (159568) showed a recent price of 1.69 yuan, with a 14.51% increase over the past three months [3] Liquidity and Trading Activity - The Hong Kong Internet ETF had a turnover rate of 21.07% during the trading session, with a transaction volume of 68.0941 million yuan, indicating active market trading [3] - The average daily trading volume for the Hong Kong Internet ETF over the past year was 175 million yuan [3] Fund Performance and Metrics - As of July 9, 2025, the Hong Kong Internet ETF had a net value increase of 51.68% over the past year, ranking 184 out of 2907 index equity funds, placing it in the top 6.33% [4] - The fund achieved a maximum monthly return of 30.31% since inception, with the longest consecutive monthly gain being three months and a maximum cumulative gain of 24.85% [4] - The fund's historical holding period of one year has a 100% probability of profit [4] Risk and Fee Structure - The Hong Kong Internet ETF has a Sharpe ratio of 1.49 since inception, with a relative drawdown of 4.64% as of July 9, 2025 [5] - The management fee is 0.50% and the custody fee is 0.10%, which are among the lowest in comparable funds [5] - The tracking error for the Hong Kong Internet ETF over the past three months was 0.052%, indicating the highest tracking precision among comparable funds [5] Valuation Metrics - The latest price-to-earnings ratio (PE-TTM) for the CSI Hong Kong Internet Index is 21.74, which is in the 10.57th percentile over the past year, indicating a valuation lower than 89.43% of the time in the past year [5] - The index consists of 30 listed companies involved in internet-related businesses, reflecting the overall performance of internet-themed stocks within the Hong Kong Stock Connect [5][6] Top Holdings - As of June 30, 2025, the top ten weighted stocks in the CSI Hong Kong Internet Index included Xiaomi Group-W (01810), Tencent Holdings (00700), Alibaba-W (09988), Meituan-W (03690), and Kingsoft (03888), collectively accounting for 72.11% of the index [6]