AI HEALTH TECH: Focus on big health, digital healthcare, and wellness services

According to the Zhitong Finance APP, AI Health Tech (01715) announced that with the changes in global population structure and the rise in health awareness, the big health industry is ushering in unprecedented development opportunities. Especially in China, with the acceleration of the aging process and the widespread application of digital technology, the big health market represented by the "silver economy" continues to expand. In response to the national "Healthy China" strategic orientation, while consolidating all existing businesses, the group will focus on big health, digital healthcare, and wellness services based on its existing health-related businesses, constructing a full-cycle health service ecosystem of "prevention-diagnosis-treatment-rehabilitation-nursing," aiming for this sector to contribute more to the group's revenue. 1. Empowering the health industry with General Artificial Intelligence (AGI) and digitalization to create an intelligent health management platform The group has recently completed the establishment of its wholly-owned subsidiary, Shenzhen CanDong Health Technology Co., Ltd., and formed a research and development team composed of professionals in software engineering, data science, and health management. This team will focus on health data analysis and intelligent services, developing a one-stop health management platform that supports real-time monitoring of health data for the entire population and lifecycle by combining self-developed and third-party technology licenses, using General Artificial Intelligence (AGI) to convey healthy lifestyles and concepts to users. The platform plans to integrate functions such as dynamic vital sign monitoring, intelligent risk assessment, personalized health interventions, and medication reminders, and will connect with medical institutions, wellness service organizations, and home care scenarios as planned. To continuously promote technological iteration and platform optimization, the group plans to further increase its investment in the system construction of General Artificial Intelligence and big data in the health field over the next three years. It is expected that once the platform is officially operational, it will significantly enhance the group's revenue annually and gradually form a dual-driven profit model of technology output and service subscriptions. 2. Layout of the high-end medical care and wellness industry, constructing a collaborative system for the silver economy To meet the growing demand for high-quality wellness services, the group is actively expanding its business depth in the medical care and wellness field. So far, the group has signed strategic cooperation agreements with several companies, including Guokong Zhongkang (Guangxi) Health Industry Co., Ltd. and Anhui Baqianli Technology Development Co., Ltd., and established a joint venture in Anhui to jointly explore the development of biomedicine, rehabilitation care, health management, and other businesses in the Greater China region. The cooperation will be promoted in the form of establishing joint ventures, fully leveraging the resource advantages of all parties in research and development, production, channels, and more. The group will focus on relying on its distribution network in the Guangdong-Hong Kong-Macao Greater Bay Area and mainland cities to promote and sell related products in the market. According to existing plans, the relevant joint ventures are expected to bring positive cash flow to the group by 2026. 3. Strengthening the trade of health and personal care products, improving channel and supply chain layout Based on research forecasts from institutions such as Frost & Sullivan, the scale of China's health industry and silver economy continues to grow, with huge potential in the market for elderly health and personal care products. To accurately grasp the demand in segmented markets, the group will integrate its existing resource advantages, strengthen its layout in e-commerce channels (including Tmall, JD.com, Douyin, and Dewu), and gradually establish a product supply chain system covering both online and offline Currently, the group has reached preliminary cooperation intentions with several high-quality suppliers from mainland China, Hong Kong, Japan, South Korea, the United States, and the European Union, planning to introduce a variety of personal health care products. According to existing market assessments and sales forecasts, this business segment is expected to bring stable income to the group by the fourth quarter of 2025 and gradually form scale and a certain market share in 2026 and 2027. This business expansion is an important strategic initiative formulated by the group based on market trends and its own resource advantages, aiming to build a complete business chain covering health management, wellness services, and product trade through the dual drive of "technology + health" and "products + services." In the future, the group will continue to increase investment in digitalization, general artificial intelligence, biotechnology, and other areas, continuously enhancing comprehensive service capabilities and industry competitiveness. The group firmly believes that the above layout will not only help enrich the existing business structure and cultivate new profit growth points but also create long-term sustainable value for shareholders and investors