AIFU Inc., the Shenzhen-headquartered independent insurance distribution platform that once operated as Fanhua and then AIX, is in the midst of the hardest strategic turn in its 28-year history. For fiscal 2025, the company reported net revenue of just US$79.6 million, down 58.2% from the prior year, and a net loss attributable to shareholders of US$325.8 million - losses driven almost entirely by one-off provisions and impairments rather than a collapse in the underlying distribution commission stream. The operating loss was only US$5.6 million; the US$223 million credit-loss provision, the US$87 million financial-asset impairment, and the disposal and fair-value losses that together produced the rest of the shortfall mark a balance sheet being actively cleaned out while the business shrinks.
The market has taken the other side of that story. Following a 1-for-20 reverse split effective June 16, 2026, the Class A ordinary shares trade near US$37, capitalizing the company at roughly US$228 million - about 2.9x trailing revenue and 3.3x the US$68.4 million of audited AIFU shareholders' equity. That valuation prices a transformation, not the reported business. Management announced on June 11, 2026 a non-binding memorandum of understanding to acquire Peakleap Ventures Limited, an industrial-AI company focused on solid-waste recycling and resource recovery, as the second engine of a stated "Industrial AI + Digital Finance" dual-engine strategy - and, in the preceding quarter, the company agreed to issue 102.6 million shares plus US$22 million of cash to buy a tea-inventory asset. The investment case is therefore a bet that AIFU can convert a declining insurance-agency franchise and a freshly-introduced industrial-AI acquisition into a growth story before the thin US$4.4 million cash balance, the reverse-split recapitalization pressure, or another credit blowup intervenes.