Core Viewpoint - Zhiyun Health (09955) reported a revenue of 3.488 billion RMB for the fiscal year ending December 31, 2024, with a gross profit of 862 million RMB and a stable gross margin of 24.7%, reflecting a year-on-year increase of 0.1 percentage points [1] Financial Performance - The increase in overall gross margin is attributed to the improvement in the gross margin of outpatient solutions, which rose from 14.2% for the year ending December 31, 2023, to 23.1% for the year ending December 31, 2024 [1] - The net profit of the five subsidiaries involved in the divestitures totaled 99.6 million RMB (pre-tax) for the fiscal year ending December 31, 2024 [6] Divestiture Details - On March 30, 2025, Zhiyun Health's subsidiary, Hangzhou Kangsheng Health Management Consulting Co., Ltd., agreed to sell 55% of Zhejiang Qilian Pharmaceutical Co., Ltd. for 33.5164 million RMB [1] - The company also agreed to sell 30% of Jiangsu Xinwange Medical Technology Co., Ltd. for 32 million RMB and 65% of Jiangsu Wandi Biotechnology Co., Ltd. for 3 million RMB [3] - Additionally, 75% of Lianyungang Zhenghe Scientific Instrument Co., Ltd. was sold for 8 million RMB, and 35% of Jiangsu Chengsheng Gene Precision Medical Technology Co., Ltd. was sold for 3 million RMB [4] Strategic Rationale - The divestitures align with the company's long-term strategy focusing on AI-driven SaaS technology advancements and monetizing the P2M (Patient to Manufacturer) pipeline [1] - The decision to divest is driven by strategic and operational considerations, particularly the need to optimize the P2M strategy and integrate AI as part of the company's transformation efforts [4] Market Impact - The five subsidiaries involved in the divestitures are significantly affected by the national medical insurance bureau's procurement policies, which have led to price reductions in their products [5] - The anticipated sixth batch of high-value medical consumables procurement and the eleventh batch of drug procurement by the national medical insurance bureau in 2025 is expected to adversely impact the future revenue, profit, and asset quality of these subsidiaries [5]