In early August, Hong Kong Stock Exchange information showed that Relaxed Health Group's IPO application status changed to "invalid." After six months since submitting its application on January 28, Relaxed Health Group's listing process has hit the pause button.

This internet health company, which originated from the "serious illness crowdfunding" platform Relaxed Fundraising, was once viewed as a strong challenger to become "the next Waterdrop" with its massive traffic pool, broad user base, and dual-engine "insurance + health services" model. However, on the eve of submitting its application, Relaxed Health Group chose to completely divest its most prominent yet controversial Relaxed Fundraising business.

This move served dual purposes: meeting compliance requirements that foreign capital cannot engage in public fundraising businesses, and severing ties with the old "donation-for-insurance" model to reshape valuation logic and ease market skepticism about its business model.

However, what remains of Relaxed Health after divesting Relaxed Fundraising? As an internet platform that entered the health industry through a "lightweight" model, can it build a truly sustainable foundation amid multiple challenges including declining traffic, user attrition, and conversion rate pressure? Are its claimed AI technology capabilities a new growth curve or merely upgraded storytelling packaging?

From the disclosed prospectus data, this "de-Relaxed Fundraising" transformation path is far from relaxed. Without Relaxed Fundraising as a low-cost entry point, Relaxed Health Group has yet to form a replicable growth loop connecting user scale and conversion pathways. For capital markets, a platform with neither a stable foundation nor compelling new narratives is destined to struggle for repricing confidence. To some extent, this "invalid" prospectus has already conveyed the market's attitude.

**01 Post-Relaxed Fundraising Dilemma**

For Relaxed Health Group, Relaxed Fundraising was not only the starting point but also a key link in user conversion and business loops for a long time. From platform growth paths to revenue structure to the main narrative of capital stories, Relaxed Fundraising has always been an inescapable shadow for Relaxed Health Group.

In June 2024, on the eve of prospectus updates, Relaxed Health Group announced the complete divestment of Relaxed Fundraising and its subsidiary Duo'er Hospital business, formally severing ties with the listing entity. The direct motivation was regulatory compliance requirements - according to current "Special Administrative Measures for Foreign Investment Access," foreign enterprises cannot engage in crowdfunding and other internet businesses with public welfare attributes. As a Cayman-registered company, Relaxed Health had to make adjustments to meet Hong Kong listing conditions.

Beyond legal compliance, deeper considerations involved corporate value reshaping: cutting ties with the old "donation-for-insurance" model to avoid the public opinion storm Waterdrop Company faced during its listing and risk premiums from traffic morality controversies.

However, after divesting Relaxed Fundraising, Relaxed Health Group quickly entered a growth predicament. As of September 2024, total registered users reached 167.8 million, compared to 163.8 million at the end of 2023 - an increase of only 4 million users, or 2.44%. Active users continued declining: from 70.5 million in 2022 to 69.1 million in 2023 (down 2.0%), and only 50 million in the first three quarters of 2024, losing over 20 million users in two years.

From a financial structure perspective, company revenue is highly concentrated in health insurance brokerage and health service brokerage. In 2022, 2023, and the first three quarters of 2024, these two businesses combined accounted for 96.7%, 98.4%, and 98.9% of total revenue respectively. Health service brokerage revenue share rose from 15.2% to 31.7%, jumping to 61.8% in the first three quarters of 2024. Correspondingly, health insurance brokerage share fell from 81.5% to 66.7%, then to 37.1%. In other words, the company completed a rapid shift from "insurance-dominated" to "health services-dominated" revenue structure.

The decline in insurance business was particularly evident in premiums. By annualized premium equivalent (APE), it fell from 1.3 billion yuan in 2022 to 1.2 billion yuan in 2023 (down 7.7%), and only 800 million yuan in the first three quarters of 2024 (down 20% year-over-year), likely to decline further for the full year.

Although total company revenue rose from 393.6 million yuan in 2022 to 490 million yuan in 2023, reaching 643 million yuan in the first three quarters of 2024 with seemingly impressive growth, the main increment came from health services, which relies more heavily on suppliers and channels, has weak volatility resistance, and lacks stable loops.

Profit margins also faced pressure. Adjusted net profit fell from 149.2 million yuan in 2022 to 146.6 million yuan in 2023 (down 1.7%), dropping further to 76.6 million yuan in the first three quarters of 2024 (down 42% year-over-year). After losing Relaxed Fundraising's low-cost traffic entry, the company needs higher marketing investments to maintain business scale, directly eroding profit margins. In the first three quarters of 2024, 643 million yuan in revenue corresponded to 364 million yuan in costs, with cost ratios reaching 56.6%, significantly weakening structural profitability.

Against this backdrop, Relaxed Health Group's valuation anchor is also weakening. During the Relaxed Fundraising era, the platform acquired massive organic traffic at extremely low costs, building stable loops through insurance conversion. Now this pathway has been severed. The company attempts to fill the gap with AIcare technology stack and "AI + Health" narratives, but Q1-Q3 2024 R&D investment was only 51.748 million yuan (8% of revenue), vastly different from ALI HEALTH's 1.8 billion yuan total R&D in 2023.

In AI segments, the company neither independently discloses related revenue nor provides clear user data, having only 48 invention patents, 34 software copyrights, and 6 Cyberspace Administration algorithm registrations, with commercialization capabilities in application scenarios yet to be established.

Overall, "de-Relaxed Fundraising" has left Relaxed Health Group in a dilemma: losing the low-cost customer acquisition traffic engine while new businesses have yet to establish stable revenue loops and competitive moats. Meanwhile, Relaxed Health Group without Relaxed Fundraising faces questioned competitiveness.

**02 Competitive Strength of "Relaxed Health" Without Relaxed Fundraising**

After divesting Relaxed Fundraising, Relaxed Health's "low-cost customer acquisition + insurance conversion" chain will enter reconstruction, requiring competition with industry leaders in more open public domain environments.

In internet healthcare and internet insurance, Relaxed Health Group faces numerous competitors. In terms of traffic and scale, leading platforms maintain overwhelming advantages. According to ALI HEALTH's FY2025 annual results, as of March 31, 2025, Tmall Health platform had 48,300 online merchants (up 35% year-over-year), with annual active users and membership continuing to grow. By September 2024, Taotian medical health services platform had over 300 million annualized active consumers and over 40,000 merchants.

Meanwhile, Relaxed Health Group had approximately 50 million active users in Q1-Q3 2024, 643 million yuan revenue, and 76.6 million yuan net profit. In comparison, ALI HEALTH achieved 30.598 billion yuan revenue in FY2025 (up 13.2%) and 1.432 billion yuan net profit (up 62.2%).

JD HEALTH shows even greater advantages in scale and usage frequency. According to its 2024 financial report, annual total revenue reached 58.2 billion yuan (up 8.6%), with non-IFRS net profit of 4.792 billion yuan (up 15.9%). As of December 2024, annual active users reached 184 million, with average daily online consultations exceeding 490,000, forming "content-consultation-medication-follow-up" loops.

Ping An Health achieved profitability turnaround in 2024, with approximately 31.35 million LTM paying users. Despite slight year-over-year decline, leveraging Ping An Group's comprehensive financial customer base in life insurance, health insurance, and property insurance, it formed integrated online and offline medical, health, and elderly care service systems, maintaining solid "paying user base + enterprise/ecosystem penetration" structures.

In insurance brokerage business, gaps between Relaxed Health and benchmark platform Waterdrop remain obvious. Waterdrop achieved 2.772 billion yuan revenue in 2024, including 2.36 billion yuan insurance business revenue corresponding to 7.473 billion yuan annual first-year premiums (FYP). Additionally, crowdfunding service fee income reached 268 million yuan (up 64.52%), digital clinical trial solution income reached 140 million yuan (up 10.45%), with all three segments growing. Comparatively, Relaxed Health saw obvious premium income decline after divesting Relaxed Fundraising, facing pressure in customer acquisition efficiency and product conversion.

In paid conversion, customer unit prices, and retention rates, Relaxed Health currently lacks high-frequency consumption scenarios and membership system advantages like ALI HEALTH and JD HEALTH, nor has it formed enterprise + individual dual-engine models like Ping An Health. According to prospectus data, Q1-Q3 2024 adjusted net profit fell 42% year-over-year, reflecting structural "revenue growth without profit growth" issues.

Overall, Relaxed Health Group's moat lacks depth. Compared to JD HEALTH's deep accumulation in online consultations, ALI HEALTH in pharmaceutical supply chains and digitalization, and Ping An Health in insurance risk control and health management, Relaxed Health's AIcare technology stack currently focuses mainly on algorithm registrations, patents, and software copyrights, with limited short-term connections to specific commercial products and stable revenue.

In channels and resources, its barriers in proprietary traffic, exclusive supply, and data loops remain relatively weak, currently relying more on external cooperation and advertising for incremental growth.

Comprehensively, without Relaxed Fundraising as an independent traffic and mindshare entry point, Relaxed Health still gaps behind leading platforms in user scale, channel resources, and ecosystem loops. Currently, its growth model highly depends on external environments and cooperation conditions, with profit margins significantly affected by customer acquisition costs and revenue-sharing ratios. Whether its growth model can further reduce dependence on external conditions will determine its competitive position.

**03 Can AI's Imagination Space Support Relaxed Health Group's Future?**

In Relaxed Health Group's prospectus, "AI" appears nearly 100 times, demonstrating its determination to break through via AI empowerment. However, across the internet healthcare track, platforms show differentiated AI implementation paths.

JD HEALTH leverages its medical teams plus JD retail and logistics systems, deeply embedding AI throughout "content-consultation-medication-follow-up" processes. AI operates stably in high-frequency scenarios like triage routing, imaging-assisted diagnosis, and medication risk monitoring, effectively improving repeat purchase rates and user stickiness.

ALI HEALTH focuses AI on supply chain and marketing intelligence upgrades, combining Taotian ecosystem to form "precision marketing + intelligent customer service + supply chain forecasting" capabilities. Its "Yilu" platform integrates multimodal models supporting drug ingredient recognition, traceability, and OTC self-service medication Q&A, covering over 300 million annual active consumers and directly strengthening traffic attraction and conversion.

Comparatively, Relaxed Health's AIcare engine applies more to insurance and health service brokerage, including algorithmic matching, intelligent conversations, and risk pricing, exploring "early screening + insurance" product models through cooperation. For example, in cardiovascular screening insurance cooperating with Airdoc and Zhonghui Mutual, AI handles imaging analysis and risk stratification. However, these applications mostly rely on partners' channels and resources with limited proprietary high-frequency scenarios, yet to form loops directly driving large-scale transactions and sustained revenue.

Without Relaxed Fundraising's independent traffic entry, Relaxed Health must find low-cost customer acquisition breakthroughs and accelerate technology productization and scenario development to amplify AI value. Otherwise, it will struggle to compete with JD HEALTH and ALI HEALTH in user scale, retention rates, and revenue contribution.

Under new business structures, Relaxed Health Group faces a fundamental choice: continue as a brokerage platform relying on external traffic or evolve into a health service provider with independent supply and technical capabilities? Without forming barriers in any key area - product and service depth, long-term user stickiness, or technology and resource loop capabilities - the "light model's" flexibility will struggle to translate into valuation premiums.

Certainly, in internet healthcare tracks, both capital and users favor platforms that build supply-side barriers and form high-frequency demand-side scenarios. But this requirement is clearly not relaxed for Relaxed Health Group.