Page 1

3 Exhibit 99.1 Operating and Financial Review for the six months ended June 30 , 2026 The following discussion and analysis of the results of operations of AIFU Inc. ( together with our subsidiaries , unless the context indicates otherwise , " we , " " us , " " our , " or the " Company " ) should be read in conjunction with our consolidated financial statements and the related notes attached hereto as Exhibit 99.2 . Share Capital Reduction and Reverse Split On April 29 , 2026 , our shareholders approved , amongst other matters , ( i ) a reduction in the par value of each issued and unissued Class A ordinary share and Class B ordinary share from US $ 0.4 per share to US $ 0.0001 per share ( the " Capital Reduction " ) . The Capital Reduction became effective on May 13 , 2026 ; and ( ii ) 1 - for - 20 reverse share split , pursuant to which every twenty ( 20 ) issued and unissued ordinary shares of a par value of US $ 0.0001 each were consolidated into one ordinary share of a par value of US $ 0.002 each ( the " Reverse Split " ) . On June 16 , 2026 , the Reverse Split became market effective on NASDAQ . Unless otherwise indicated , all share counts and per share amounts for all periods presented have been retroactively adjusted to reflect the cumulative effect of the Reverse Split . Discontinued Operation In January 2025 , we disposed of our entire equity interest in Fanhua Insurance Surveyors & Loss Adjustors Co. , Ltd. ( " FHISLA " ) , the operating entity of our claims adjusting business segment , and ceased offering claims adjusting services . As a result , this business has been presented as a discontinued operation for all periods presented , and we now operate with two reportable segment -the insurance agency segment and the health and wellness segment . Results of Operations The following information was derived from our unaudited financial results for the six months ended June 30 , 2026 and 2025 . Selected Items and Data of Unaudited Interim Consolidated Statements : 2025 RMB For the Six Months Ended June 30 , 2026 RMB 2026 US $ Total net revenues Total operating costs and expenses ( Loss ) Income from operations Net ( loss ) income from continuing operations Net income from discontinued operations , net of tax ( in thousands , except for share data ) 297,447 226,180 33,334 ( 305,245 ) ( 193,268 ) ( 28,484 ) ( 7,798 ) 32,912 4,850 ( 473,345 ) 48,076 7,085 3,230 Net ( loss ) income attributable to the Company's shareholders Net ( loss ) income per share attributable to the Company's shareholders - basic and diluted ( 465,709 ) ( 1,696.4 ) * 48.283 8.2 7,116 1.2 * Retrospectively restated for the 1 - for - 20 reverse split effected on June 16 , 2026 . Revenues Our net revenues are derived primarily from the provision of insurance agency services and sales of health and wellness products . Our insurance agency services primarily comprise of distribution of long - term life insurance products and , to a lesser extent , short - term insurance products to individuals , and commercial property insurance products to corporate clients . Sales of health and wellness products primarily represent sales of premium dark tea to corporate clients . The following table sets forth our total net revenues earned from services and sales , both in absolute amounts and as percentages of total net revenues , for the periods indicated : Net revenue generated from services Life insurance business Non - life insurance business Total net revenue from services Net revenue generated from sales Total net revenues 2025 RMB % Six Months Ended June 30 , 2026 US $ % RMB ( in thousands except percentages ) 267,881 90.1 29,566 9.9 297,447 100.0 297,447 100.0 209,373 15,120 224,493 1,687 226,180 30,858 92.6 2,228 6.7 33,086 99.3 248 33,334 0.7 100 Total net revenues were RMB226.2 million ( US $ 33.3 million ) for the six months ended June 30 , 2026 , representing a decrease of 24.0 % from RMB297.4 million for the six months ended June 30 , 2025 . Total gross written premiums ( " GWP " ) of insurance products that we facilitated was RMB7,003.0 million for the six months ended June 30 , 2026 , representing a decrease of 14.4 %