XUNFEIHEALTH (02506) recently secured a 428 million yuan software services contract for the National Artificial Intelligence Application Pilot Base (focused on primary healthcare services in the medical field). The project aligns with China’s "AI+" policy, aiming to establish collaborative industry chains, accelerate technological commercialization, and incubate high-quality applications.
This win underscores XUNFEIHEALTH’s technological prowess and signals accelerated growth for AI-driven healthcare, backed by policy tailwinds. As the project’s lead contractor, the company transitions from an industry participant to a co-creator of future national AI medical standards.
In 2025, China’s National Development and Reform Commission (NDRC) has prioritized pilot bases in key sectors like healthcare, manufacturing, and transportation, with multiple projects already underway nationwide. The healthcare segment is advancing rapidly, evidenced by the November 4th guideline issued by the National Health Commission and four other departments to standardize and promote "AI+medical" applications.
Industry prospects are buoyed by policy-market synergy. Frost & Sullivan data shows China’s medical AI sector grew at a 33.8% CAGR from 2019–2023, with a projected 43% CAGR from 2023–2033, reaching a 315.7 billion yuan market.
For XUNFEIHEALTH, the project’s impact spans three dimensions: 1. **Standard-Setting Authority**: Shifting from experimentation to defining industry benchmarks, solidifying its leadership. 2. **Commercialization Momentum**: Early-mover advantage to capitalize on policy-driven market opportunities. 3. **GBC Strategy Synergy**: Unlocking potential across government, business, and consumer (GBC) scenarios to diversify revenue streams.
Technologically, XUNFEIHEALTH’s 2023-launched Spark Medical AI Model has surpassed global counterparts like GPT-5 (high) and DeepSeek V3.2-Exp in medical Q&A performance, achieving specialist-level accuracy comparable to top-tier hospital physicians.
The company’s GBC-aligned products—including the AI Diagnostic Assistant and AI Health Assistant suites—have driven commercialization success. For instance, its flagship "Zhiyi Assistant" serves 250,000 primary-care doctors across 31 provinces, aiding over 1.1 billion diagnoses, while the Spark-powered Xiaoyi APP boasts 24 million downloads and 140 million AI consultations.
Under the GBC framework, XUNFEIHEALTH’s revenue grew at a 24.7% CAGR (2022–2024), with H1 2025 growth hitting 30%, signaling sustained momentum.
The newly awarded project targets primary healthcare—a policy-prioritized sector where the government aims for nationwide AI-assisted diagnosis coverage by 2030. This marks XUNFEIHEALTH’s shift from single-product delivery to a scalable "Model-as-a-Service" (MaaS) approach, enhancing user retention and recurring service revenue.
2025 marks the launch year for China’s "AI+" national strategy, with mass adoption expected by 2026. XUNFEIHEALTH’s multi-scenario product matrix, first-mover advantage in medical AI models, and vast user base position it as a prime beneficiary of this growth.
Analysts, including Zhongtai Securities, highlight its rapid GBC-driven revenue expansion and competitive edge in capturing medical AI commercialization opportunities. As performance scales, the company is poised for valuation re-rating, offering long-term investment upside.
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