Since its official inclusion in the Southbound Stock Connect list on March 9, 2026, Qingsong Health (02661.HK) has embarked on a new round of upward momentum, with a cumulative gain of nearly 50% over the past few days.

As of March 17, 2026, Qingsong Health's share price hit another all-time high, breaking through HK$130 during intraday trading before closing at HK$126.6. The company's total market capitalization currently stands at HK$26.13 billion.

Capital Pursuit: Shares Up Over 450% Since IPO

Public records show that Qingsong Health was founded in 2014. It is a company dedicated to providing integrated digital health services and health insurance solutions. It offers diversified and personalized health services to users seeking holistic health solutions, including screening-related promotion and consulting, health check-ups, medical appointment services, and the sale of healthcare products.

According to data from Frost & Sullivan, based on 2024 revenue, Qingsong Health ranked 10th in China’s digital integrated health services and health insurance services market.

NewTimeSpace understands that Qingsong Health offered 26.54 million shares globally at an IPO price of HK$22.68 per share, with net proceeds of HK$513 million. The funds were primarily allocated to enhancing brand awareness, increasing user engagement, strengthening partnerships, medical and real-world research, upgrading AI and big data technical capabilities, and expanding into more regional and overseas markets.

On December 23, 2025, Qingsong Health successfully listed on the Main Board of the HKEX, with its share price surging 158.82% on its debut, reaching a market value of HK$12.1 billion.   Since its debut, Qingsong Health’s stock has climbed steadily, breaking the HK$100 mark in less than a month. As of the close on March 17, the company was quoted at HK$126.60, with a single-day gain of 8.30% and a cumulative increase of 458.20% since listing.

Sustained Revenue Growth vs. Rapidly Declining Gross Margin

Against the broader industry backdrop where digital health firms often struggle with "scale without monetization" or "high growth without profit," Qingsong Health is one of the few listed digital health companies to achieve sustained profitability.

NewTimeSpace has learned that Qingsong Health’s clients primarily include insurance partners, pharmaceutical companies, and individual customers using the company’s integrated health service packages. Users access services through the company's WeChat official accounts, mini-programs, WeChat Work accounts, and official website.

Data shows that in 2022, 2023, 2024, and the first half of 2025, the company's registered users were 155 million, 164 million, 168 million, and 168 million, respectively. During the same periods, active users were approximately 71 million, 69 million, 65 million, and 23 million.

Judging by user activity metrics, there was no change in registered users from 2024 to the first half of 2025. Furthermore, the number of active users has been gradually decreasing during the reporting period, with the decline in the first half of 2025 being particularly pronounced. How to revitalize existing users and continuously attract new ones has become an unavoidable challenge for the company.

In terms of financial performance, the company’s revenue from 2022 to 2024 was approximately RMB 394 million, RMB 490 million, and RMB 945 million, showing an accelerated growth trend. Revenue further grew to RMB 656 million in the first half of 2025. Net profits during the reporting period were approximately RMB -9.098 million, RMB 97.169 million, RMB 8.99 million, and RMB 86.045 million, indicating significant volatility.

Regarding the shift in revenue structure, the company has gradually transitioned from being "insurance-related service dominant" to "health service driven." Data shows that from 2022 to H1 2025, the revenue contribution from insurance-related services dropped from 81.5% to 22.9%, while digital integrated health services revenue soared to 76.7% by the first half of 2025.

Notably, Qingsong Health’s gross profit margin dropped from 82.6% in 2022 to 32.5% in the first half of 2025. The prospectus explains that this change was primarily due to increased procurement of outsourced services and higher on-site execution costs. While revenue is growing rapidly, the continuous decline in gross margin exposes the "cost of transition." Moving from asset-light "insurance sales" to service-heavy "digital health" inevitably brings a fundamental change in cost structure.

Highly Fragmented Industry; TTM P/E Nears 300x

In the high-growth digital health track, as AI technology integrates deeply with healthcare, competition is shifting from "single-point breakthroughs" to "multidimensional strategies."

According to Frost & Sullivan, the overall digital health services market is expected to increase from RMB 221.5 billion in 2024 to RMB 706.8 billion by 2029 (CAGR 26.1%). In comparison, the digital insurance market is expected to grow from RMB 15 billion in 2024 to RMB 41.7 billion by 2029 (CAGR 22.7%).

Despite the "blue ocean" growth potential, Qingsong Health faces a complex competitive landscape including traditional internet healthcare giants, tech conglomerates with cross-sector layouts, and startups focusing on vertical tracks.

NewTimeSpace understands that the digital health service market is highly fragmented, with the top 15 platforms accounting for only 6.0% of the total market. Current major competitors include JD Health, AliHealth, Ping An Good Doctor, Fangzhou Jianke (Ark Health), and Jiankang 160.

Among them, JD Health, a leader in pharmaceutical e-commerce, boasts the most comprehensive SKU range and serves over 120 million users in chronic disease management, leveraging JD Group’s logistics and supply chain. AliHealth uses the Alipay entry point to create a closed loop of "medical search-consultation-drug delivery." Ping An Good Doctor utilizes Ping An Group’s "medical-insurance synergy" ecosystem with over 400 million registered users and its AI digital doctor "Ping An Xin Yi."

Meanwhile, Ark Health and Jiankang 160, as peers in the same sector, serve as direct benchmarks for Qingsong Health. Their recent strong stock performances reflect the overall capital pursuit of the "AI + Health" track.

From a valuation perspective, Qingsong Health's share price climbed rapidly after its inclusion in the Stock Connect. Its market value exceeded HK$25 billion in less than three months since listing, and its TTM P/E ratio currently stands as high as 296.71x. Short-term capital sentiment is a major driver; should market styles shift or performance fail to meet expectations, the pressure for a market cap correction cannot be ignored.  

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