Ji'an Medical stock soars 46% in a frenzy: 2 billion yuan net profit relies on investments to support the scene, medical main business stalls

Ask AI · Can growth driven by Ji’an Health’s investment endeavors continue to mask deterioration in its core business?

Our reporter Zhang Siwen and Yu Na, Beijing, reporting from chinatimes.net.cn

In March 2026, Ji’an Health (Stock code: 002432.SZ), riding the “venture capital + AI medical care” concept, once again stirred waves in the capital markets. Its stock price hit a series of daily trading-limit gains, drawing widespread attention.

（Data source: Wind）

According to Wind data, over only 20 trading days from February 24, 2026 to March 23, 2026, Ji’an Health’s stock price surged 46.79%, sharply contrasting with the industry index for the same period, which fell 9.18%.

Uncertainty over the prospects of expanding into new areas

In recent years, Ji’an Health has made some moves in related fields.

In terms of venture investment, the company has cumulatively committed more than RMB 4.3 billion in capital. It has established partnerships with 27 venture capital funds including Qiji Ventures and BlueRun. The investment directions focus on hard technology, medical and health for the long-term, AI, bio-manufacturing, and other areas. Through funds and direct investments, Ji’an Health has indirectly taken stakes in targets such as Moonshot AI, an AI large-model company, and Muxi Technology, a GPU chip company.

In AI medical care, the company applies AI technology to diabetes long-term care management and launched the “AIoT Diabetes Home Care Medical Assistant” product, positioning it as an intelligent assistant for care managers. The Care Manager Copilot went live in 2025, and the full AI module is expected to kick off gray-scale testing in the second quarter of 2026. At present, the company has assembled an AI team of about 30 people, and its diabetes diagnosis-and-care model has cumulatively served 366,000 patients in China.

However, some experts are not optimistic.

Yuan Shuai, executive vice president of the China Academy of Urban Development and the Agricultural, Culture and Tourism Industry Revitalization Research Institute, told reporters from Huaxia Times that Ji’an Health has accumulated a large amount of cash through COVID-19 antigen rapid test kits. Its attempt to transform from a pure medical device manufacturer into a “hit product + internet healthcare + sci-tech investment” company is, in essence, an extreme reconfiguration of capital efficiency and business boundaries in the post-epidemic era. This mixed-operations model creates significant centrifugal force for corporate governance. It requires management not only to have extremely strong sensitivity to industrial manufacturing, but also to cross into high-risk venture investment areas and high-operational-complexity healthcare service fields. This easily leads to diluted management focus and conflicts in decision logic. In terms of valuation frameworks, this model results in an interweaving of “valuation discounts” and “hot premium.” The market can hardly classify it simply as a medical-device stock or a venture-capital stock. Capital markets’ attributes become blurred, causing its stock performance to often deviate from fundamentals, showing extremely high volatility and uncertainty.

Yuan Shuai believes that in large-scale cross-industry investments, Ji’an Health plays the role of a “corporate venture capital (CVC)” type. Its advantage lies in preventing the large amount of cash from being eroded by inflation, while using AI and hard technology layouts to seek returns exceeding those of the medical industry. Its downside is that the non-core, investment-related nature of its business may lead to insufficient investment in the core business; meanwhile, fair value changes of investment targets can strongly disrupt the profit and loss statement and obscure the true operating condition of the main business. The “concept speculation” in the current stock price reflects the market’s high level of opportunism in its expectations for a turnaround and transition. While this divergence is maintained in the short term thanks to the safety cushion provided by cash reserves, in the long-term logic, if investments cannot be converted into strategic synergies, or if the medical core business fails for a long time to deliver new, large-scale profitable growth, then the valuation built on asset restructuring and cross-industry illusions will ultimately face a rational valuation reversion.

Therefore, behind the stock-price frenzy, the company’s “two-sidedness” makes investors worried. On one side are cash reserves of over RMB 20 billion on the books and seemingly impressive increases in profit forecasts; on the other side are the continued contraction of the core business and sluggish progress on new business initiatives.

“Growth” propped up by investment returns

Not long ago, Ji’an Health released a rather eye-catching 2025 annual performance forecast: it expected attributable net profit of RMB 2.02 billion to RMB 2.35 billion, representing a year-on-year increase of 21.05% to 40.83%.

However, the quality of this “growth” has triggered widespread concerns in the market.

The announcement clearly states that the earnings growth mainly benefits from “good performance of the asset management business in large-asset allocation,” rather than expansion of the core medical business.

In sharp contrast, in the first three quarters of 2025, the company’s revenue saw a substantial year-on-year drop of 48.89%, with demand for its core test-kit products also declining.

（Data source: Wind）

This structure of “non-recurring gains supporting performance” has been questioned by the market as “hollowing out the main business.”

According to disclosures by the company, in the past, the growth of Ji’an Health’s operating performance was mainly driven by a significant increase in sales of iHealth test-kit products, especially demand pulled by orders from the U.S. government. The sales of its at-home COVID-19 antigen self-testing kit products are directly related to demand in the U.S. market and are also affected by factors such as local policies and market competition environments. Changes in the above circumstances may reduce market demand for test-kit products, bringing risks of volatility in the company’s performance.

The company also said it has closely monitored developments in U.S. tariff policies and adjusted strategies flexibly. But if U.S. tariff policies become even more stringent in the future, operating performance will face risks arising from trade frictions and global supply-chain adjustments.

As for how Ji’an Health judges the overall outlook for the test-kit business in 2026, Huaxia Times reporters previously sent the company a letter to interview it, but did not receive a response.

With its traditional business constrained, Ji’an Health is pinning its hopes on continuous glucose monitoring (CGM). The company plans to complete certification and list its CGM product in China in the second quarter of 2026.

According to information disclosed when the company received multiple institutions for research visits at the end of January 2026, the CGM product is currently accelerating type testing and clinical-related work in China.

Unlike peers that simply sell hardware, Ji’an Health positions CGM as a key hardware entry point in its core strategy—the “O+O” new model for diabetes diagnosis, treatment, and care. This model has been rolled out in 50 cities and 424 hospitals nationwide, managing 366,000 diabetes patients; in the United States, it has covered 74 clinics and about 21,000 patients. Data show that the diabetes patients’ rate of meeting glycosylated hemoglobin targets has risen from roughly 30% at baseline to over 60%.

However, because there are differences between chronic-disease management among people in China and the U.S., the future performance of this business may not be as optimistic as expected.

Yuan Shuai believes that regarding the “O+O” model for diabetes management, the crux of why long-term chronic disease management in China is hard to make profitable lies in the lack of payment mechanisms and the break in user habits. At present, chronic disease management in China relies heavily on patients paying out of pocket, with no closed-loop commercial health insurance system like in the U.S. As a result, high-frequency care services cannot be converted into high, continuous revenue. Ji’an Health tries to build trust through in-hospital visits and then redirect it to out-of-hospital management. Although the logic is internally consistent, it faces major drawbacks in implementation, such as high walls at public hospitals, difficulties in data interoperability, and challenges in quantifying patients’ adherence to medical instructions after leaving the hospital. To truly make the model work, the key is not in technical methods, but in whether there is a feasible entry point within the existing medical insurance reimbursement system or corporate supplementary medical insurance. Otherwise, the idea of driving services simply by selling hardware is extremely unlikely to escape the profit trap of high input and low output.

In the future, whether Ji’an Health can truly chart a sustainable path of growth amid the tug-of-war between “hot premium” and “valuation discount,” Huaxia Times reporters will continue to follow closely.

责任编辑：姜雨晴 主编：陈岩鹏