Pomdoctor’s Online Hospital Revenue Jumps 82%—Margin Pressures Remain Despite IPO Success
Revenue Growth Driven by Online Hospital and Pharmacy Expansion
Pomdoctor Limited (NASDAQ: POM), a leading online medical platform for chronic diseases in China, delivered strong top-line results in its unaudited first half 2025 financials. The company’s net revenue grew 16.2% to RMB174.5 million (US$24.36 million), powered largely by an 82.4% jump in Internet hospital sales, which hit RMB67.2 million (US$9.4 million). Online pharmacy sales nearly doubled to RMB66.4 million (US$9.3 million), underlining Pomdoctor’s aggressive push into digital pharmaceutical distribution and manufacturer partnerships.
| Segment | 1H 2025 (RMB) | 1H 2025 (USD) | % Change YoY |
|---|---|---|---|
| Net Revenue | 174.5 million | 24.36 million | +16.2% |
| Online Hospital | 67.2 million | 9.40 million | +82.4% |
| Online Pharmacy Sales | 66.4 million | 9.27 million | +83.2% |
Gross Margin Holds Steady as Sales Shift Toward Lower-Margin Products
Despite robust growth, Pomdoctor’s overall gross profit margin held at 16.2%. The Internet hospital margin slipped to 40.5% (from 44.7% a year ago), mainly because a larger portion of sales now comes from pharmacy products with thinner profits. Gross margin for the pharmaceutical supply chain segment fell further—from 6.9% to just 1.1%—as the company added wholesale customers with tighter margins. Gross profit rose 16.3% to RMB28.3 million (US$3.95 million).
| Segment | Gross Margin 1H 2024 | Gross Margin 1H 2025 |
|---|---|---|
| Overall | 16.2% | 16.2% |
| Internet Hospital | 44.7% | 40.5% |
| Pharmaceutical Supply Chain | 6.9% | 1.1% |
Operating Expenses Rise as Company Invests in Growth and Doctor Retention
Total operating expenses jumped 25.7% year over year to RMB41.78 million (US$5.83 million), with sales and marketing rising to RMB27.76 million (US$3.88 million), and administrative costs swelling to RMB10.49 million (US$1.46 million) due in part to IPO-related expenses. The company reported a net loss of RMB19.89 million (US$2.78 million) for the period—an increase from RMB14 million a year earlier—highlighting ongoing challenges in balancing scale with profitability. Net cash used in operating activities grew to RMB14.99 million (US$2.09 million), outpacing the prior-year period.
| Operating Metric | 1H 2024 (RMB) | 1H 2025 (RMB) | 1H 2025 (USD) |
|---|---|---|---|
| Operating Expenses | 33.25 million | 41.78 million | 5.83 million |
| Net Loss | 14.03 million | 19.89 million | 2.78 million |
| Net Cash Used (Operations) | 10.63 million | 14.99 million | 2.09 million |
IPO Brings Fresh Capital but Profitability Remains a Longer-Term Goal
Pomdoctor’s successful Nasdaq IPO in October 2025, with gross proceeds of US$23 million, provides new financial firepower to fund future initiatives and expand its business. However, the company’s liquidity position at mid-year was modest, with cash and cash equivalents of RMB5.75 million (US$802,000), down from RMB7.65 million six months earlier. With a stable pharmaceutical supply chain and retention of its core doctor resources, the company is focused on growth, though near-term profitability is still elusive.
Key Takeaways for Investors
Pomdoctor’s first half 2025 results show impressive momentum in online healthcare and digital pharmacy, reflected by double-digit revenue gains and industry partnerships. Yet, shrinking margins and widening losses suggest that further operational efficiencies will be needed before the company can sustainably leverage its growth. Investors may wish to watch for future progress on profitability, margin stabilization, and efficient use of newly raised capital as Pomdoctor navigates the rapidly changing healthcare technology sector in China.
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