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:

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:

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% from RMB8,177.3 million for the same period of 2025, of which first year premiums (“FYP”) increased by 8.2% year-over-year from RMB520.5 million to RMB563.2 million while renewal premiums decreased by 15.9% year-over-year from RMB7,656.8 million to RMB6,439.8 million.

Net revenues generated from our life insurance business accounted for 92.6% of our total net revenues in the first half of 2026, as compared to 90.1% in the same period of 2025.

Net revenue generated from sales of health and wellness products were RMB1.7 million (US$0.2 million) for the six months ended June 30, 2026, following the Company’s expansion into this segment after acquiring a premium inventory of dark tea products on January 9, 2026.

Net revenues from sales of health and wellness products accounted for 0.7% of our total net revenues in the first half of 2026, as compared to nil for the same period of 2025.

Operating Costs and Expenses

Our operating costs and expenses primarily consist of costs incurred in connection with the distribution of insurance products, selling expenses and general and administrative expenses. The following table sets forth the components of our operating costs and expenses, both in absolute amounts and as percentages of our net revenues, for the periods indicated.

We incur costs primarily in connection with the distribution of insurance products, primarily representing commissions costs paid to sales agents or connected channels.

Operating costs were RMB98.6 million (US$14.5 million) for the six months ended June 30, 2026, representing a decrease of 30.8% from RMB142.6 million for the six months ended June 30, 2025. The decrease was in line with the decrease in net revenues.

Our selling expenses primarily consist of i) salaries and employment benefits for employees who work in back office below the provincial management level, ii) office rental, telecommunications and office supply expenses incurred in connection with sales activities and iii) advertising and marketing expenses.

Selling expenses were RMB24.9 million (US$3.7 million) for the six months ended June 30, 2026, representing an increase of 7.6% from RMB23.2 million for the six months ended June 30, 2025. The increase was primarily attributable to a low comparative base, as the corresponding period of 2025 reflected a reversal of previously recognized share-based compensation expenses arising from the forfeiture of share options granted to agents. This increase was partially offset by cost savings from reduced rental expenses.

Our general and administrative expenses primarily consist of salaries and benefits for our administrative staff, research and development expenses in relation to our mobile and online programs, professional fees paid for valuation, market research, legal and auditing services, share-based compensation expenses for managerial and administrative staff, bad debt expenses for credit loss, depreciations and amortizations, office rental expenses, travel and telecommunications expenses, entertainment expenses, and office supply expenses for our administrative staff.

General and administrative expenses were RMB69.7 million (US$10.3 million) for the six months ended June 30, 2026, representing a decrease of 50.0% from RMB139.5 million for the six months ended June 30, 2025. The decrease was mainly attributable to cost savings from personnel optimization and reduced rental expenses of provincial branch offices and a reduction of RMB15.7 million in share-based compensation expenses, which were recognized in the prior-year period but were not incurred in the current period.

(Loss) Income from Operations

As a result of the foregoing factors, income from operation was RMB32.9 million (US$4.9 million) for the six months ended June 30, 2026, as compared with an operating loss of RMB7.8 million for the six months ended June 30, 2025.

Other (Loss) Income

Loss from fair value change was RMB1.1 million (US$0.2 million) for the six months ended June 30, 2026, as compared to loss from fair value change of RMB18.0 million for the six months ended June 30, 2025. The loss for the six months ended June 30, 2026 primarily represented the fair value changes of our equity investment in BGM Group Ltd. while the loss from fair value change for the six months ended June 30, 2025 primarily represented the fair value change of RMB17.5 million of contingent consideration in regards to business combinations completed in the first quarter of 2023.

Provision for credit losses was a net reversal of negative RMB3.2 million (US$0.5 million) for the six months ended June 30, 2026, as compared with a provision of RMB487.6 million for the six months ended June 30, 2025, mainly representing a reversal of credit loss allowance previously recorded in respect of loans to third parties, due to the collection of RMB3.7 million of such loan receivables in the current period. No interest income has been accrued on the loans this period as collection of the related interest is deemed unlikely.

Investment loss was RMB0.8 million (US$0.1 million) for the six months ended June 30, 2026, as compared to investment income of RMB5.0 million for the six months ended June 30, 2025. The decrease reflected i) losses arising from the disposal of held shares; ii) decrease of cash available for short term investment and the periodic fluctuation in yields from short-term investments in financial products as it is recognized when the investment matures or is disposed of.

Income tax expense

Income tax expense was RMB8.2 million (US$1.2 million) for the six months ended June 30, 2026, representing a decrease of 2.4% from RMB8.4 million for the six months ended June 30, 2025.

Net (loss) income from continuing operations

As a result of the foregoing factors, net income from continuing operations was RMB48.1 million (US$7.1 million) for the six months ended June 30, 2026, as compared to a net loss from continuing operations of RMB473.3 million for the six months ended June 30, 2025.

Net income from discontinued operations

Net income from discontinued operations was nil for the six months ended June 30, 2026, as compared to RMB3.2 million for the six months ended June 30, 2025, mainly representing gain from the disposal of the claims adjusting segment.

Net (loss) income attributable to the Company’s shareholders

Net income attributable to the Company’s shareholders was RMB48.3 million (US$7.1 million) for the six months ended June 30, 2026, as compared to net loss attributable to the Company’s shareholders of RMB465.7 million for the six months ended June 30, 2025.

Basic and diluted net (loss) income per ordinary share attributable to the Company’s shareholders from continuing operations

Basic and diluted net income per ordinary share attributable to the Company’s shareholders from continuing operations were RMB8.2 (US$1.2) and RMB8.2 (US$1.2) for the six months ended June 30, 2026, respectively, as compared to basic and diluted net loss per ordinary share from continuing operations attributable to the Company’s shareholders of RMB1,708.2 and RMB1,708.2 for the six months ended June 30, 2025, respectively.

Liquidity and Capital Resources 

Our principal sources of liquidity have been cash generated from our financing activities. As of June 30, 2026, we had RMB33.3 million (US$4.9 million) in cash and cash equivalents, and RMB0.3 million (US$0.05 million) in short-term investments. Our cash and cash equivalents consist of cash on hand and bank deposits and our short-term investments consisting of short-term, highly liquid investments that are readily convertible to known amounts of cash, and have an insignificant risk of changes in value related to changes in interest rates. Our principal uses of cash have been to fund maintenance of digital platforms, working capital requirements, office equipment purchases, office renovation and rental deposits.

We expect to need cash to fund our ongoing business needs, such as recruiting and training a professional sales force, enhancing our IT infrastructure and developing the sales capabilities and channels for our tea products.

We believe that our current cash and cash equivalents and anticipated cash flow from operations will be sufficient to meet our anticipated cash needs, including our cash needs for working capital and capital expenditures, for at least the next 12 months. We may, however, require additional cash due to changing business conditions or other future developments, including any investments or acquisitions we may decide to pursue. If our existing cash is insufficient to meet our requirements, we may seek to sell additional equity securities, debt securities or borrow from lending institutions. Financing may be unavailable in the amounts we need or on terms acceptable to us, if at all. The sale of additional equity securities, including convertible debt securities, would dilute our earnings per share. The incurrence of debt would divert cash for working capital and capital expenditures to service debt obligations and could result in operating and financial covenants that restrict our operations and our ability to pay dividends to our shareholders. If we are unable to obtain additional equity or debt financing as required, our business operations and prospects may suffer. 

 The following table sets forth our cash flows for the periods indicated:

Operating Activities

Net cash generated in operating activities for the six months ended June 30, 2026 was RMB3.8 million (US$0.6 million). This reflected the net income of RMB48.1 million (US$7.1 million), as adjusted for: (i) depreciation expense of RMB2.6 million (US$0.4 million); (ii) non-cash operating lease expense of RMB7.8 million (US$1.2 million); (iii) reversal of allowance for credit losses on financial assets of RMB4.2 million (US$0.6 million); (iv) deferred taxes of RMB10.1 million (US$1.5 million); and (v) investment loss of RMB0.8 million (US$0.1 million). The significant changes in such non-cash and non-operating items were primarily due to depreciation expense, non-cash operating lease expenses, offset by reversal of credit losses on financial assets and deferred taxes. Operating cash flows were affected by a net negative change of RMB41.5million (US$6.1 million) in our operating assets and liabilities, primarily from the effects of: (i) a decrease of contract assets of RMB67.8 million (US$10.0 million); (ii) a decrease of other current assets of RMB3.7 million (US$0.5 million); (iii) an increase of income taxes payable of RMB8.5 million (US$1.3 million); offset by: (i) an increase of accounts receivable of RMB6.3 million (US$0.9 million); (ii) an increase of other receivables of RMB6.3 million (US$0.9 million); (iii) a decrease of accounts payable of RMB36.5 million (US$5.4 million); (iv) a decrease of accrued commissions of RMB13.3 million (US$2.0 million); (v) a decrease of other payables and accrued expenses of RMB45.8 million (US$6.8 million); (vi) a decrease of accrued payroll of RMB6.2 million (US$0.9 million); and (vii) a decrease of lease liabilities of RMB7.3 million (US$1.1 million).

Net cash generated from operating activities for the six months ended June 30, 2025 was RMB1.5 million. This reflected the net loss of RMB470.1 million, as adjusted for non-cash and non-operating items, primarily including (i) depreciation expense of RMB2.4 million; (ii)non-cash operating lease expense of RMB17.7 million; (iii) allowance for credit losses on financial assets of RMB486.7 million; (iv) share-based compensation expensesof RMB15.8 million; (v) loss on disposal of investment in an associate of RMB4.3 million; (vi) gain on disposal of property, plant and equipment of RMB1.2 million; (vii) investment income of RMB5.0 million; (viii) net gain on disposal of subsidiaries of RMB9.5 million; (ix) deferred taxes of RMB6.5 million; and (x) interest accrued for other receivables of RMB17.5 million. The significant changes in such non-cash and non-operating items were primarily due to allowance for credit losses on financial assets, non-cash operating lease expense, depreciation expense,share-based compensation expenses,loss on disposal of investment in an associate, offset by interest accrued for other receivables, net gain on disposal of subsidiaries, deferred taxes, investment income and gain on disposal of property, plant and equipment. Operating cash flows were negatively affected by a RMB16.0 million net change in our operating assets and liabilities, primarily from the effects of (i) a decrease of accounts receivable of RMB13.0 million; (ii) a decrease of contract assets of RMB132.3 million; (iii) a decrease of other current assets of RMB221.7 million; (iv) an increase of other payables and accrued expenses of RMB38.9 million; and (v) an increase of income taxes payable of RMB15.4 million; offset by (i) an increase of other receivables of RMB113.3 million; (ii) an increase of other non-current assets of RMB187.3 million; (iii) a decrease of accounts payable of RMB26.9 million; (iv) a decrease of accrued commissions of RMB48.1 million; (v) a decrease of accrued payroll of RMB6.2 million; (vi) a decrease of lease liabilities of RMB17.9 million; and (vii) a decrease of tax liabilities of RMB37.3 million.

Investing Activities 

Net cash used in investing activities for the six months ended June 30, 2026 was RMB226.8 million (US$33.4 million), primarily attributable to cash used to purchase short-term investment products of RMB3.6 million (US$0.5 million), payment for business acquisitions, net of cash acquired of RMB150.0 million (US$22.1 million), cash paid out for loan receivables from third parties of RMB121.6 million (US$17.9 million), an increase in amounts due from related parties of RMB1.0 million (US$0.1 million), and purchase of property, plant and equipment of RMB2.0 million (US$0.3 million), offset by proceeds from the disposal of short-term investments of RMB7.7 million (US$1.1 million) that matured, consideration received in respect of subsidiaries disposed of in the prior year of RMB38.2 million (US$5.6 million), cash received for loan receivables from third parties of RMB4.7 million (US$0.7 million), proceeds from disposal of property and equipment of RMB0.4 million (US$0.1 million), a decrease in amounts due from related parties of RMB0.7 million (US$0.1 million).

Net cash used in investing activities for the six months ended June 30, 2025 was RMB104.4 million, primarily attributable to cash used to purchase short-term investment products of RMB56.9 million, increase in amounts due from related parties of RMB10.4 million, purchase of property, plant and equipment of RMB1.1 million and disposal of subsidiaries, net of cash disposed of RMB131.1 million, offset by proceeds from the disposal of short-term investments of RMB93.3 million that matured and proceeds from disposal of property and equipment of RMB1.4 million.

Financing Activities 

Net cash generated from financing activities was RMB233.4 million (US$34.4 million) for the six months ended June 30, 2026, attributable to proceeds from ordinary shares issuance of RMB234.7 million (US$34.6 million) partially offset by repayment of bank and other borrowings and other financing outflows of RMB1.3 million (US$0.2 million).

Net cash used in financing activities was RMB45.6 million for the six months ended June 30, 2025, attributable to repayment of bank borrowings of RMB52.9 million, partially offset by proceeds of issuance of ordinary shares of RMB7.3 million.

Foreign Currency Translation

The unaudited financial results for the six months ended June 30, 2026 are stated in RMB. Translations of amounts from RMB into USD are solely for the convenience of the readers outside of China and were calculated at the rate of US$1.00 = RMB 6.7851, representing the noon buying rate in the City of New York for cable transfers of RMB on June 30, 2026, as set forth in H.10 statistical release of the Federal Reserve Bank of New York. The translation is not intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into USD at such rate.

AIFU’s Insurance Sales and Service Distribution Network:

As of June 30, 2026, AIFU’s distribution network consisted of 288 sales outlets in 24 provinces, compared with 360 sales outlets in 24 provinces as of June 30, 2025. The decrease in the number of sales outlets reflected our focus on growing profitable branches, coupled with the challenging decisions to close those which were not yielding profits.

Forward-looking Statements

This filing contains statements of a forward-looking nature. These statements, including the statements relating to the Company’s future financial and operating results, are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “expects,” “believes,” “anticipates,” “intends,” “estimates” and similar statements. Among other things, management’s quotations contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about AIFU and the industry. Potential risks and uncertainties include, but are not limited to, those relating to its ability to attract and retain productive agents, especially entrepreneurial agents, its ability to maintain existing and develop new business relationships with insurance companies, its ability to execute its growth strategy, its ability to adapt to the evolving regulatory environment in the Chinese insurance industry, its ability to compete effectively against its competitors, quarterly variations in its operating results caused by factors beyond its control including macroeconomic conditions in China. Except as otherwise indicated, all information provided in this press release speaks as of the date hereof, and AIFU undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although AIFU believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by AIFU is included in AIFU’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.

AIFU INC.

Unaudited Condensed Consolidated Balance Sheets

(In thousands, except for shares and per share data)

AIFU INC.

Unaudited Condensed Consolidated Balance Sheets (continued)

(In thousands)

The number of shares as of December 31, 2025 is retrospectively restated for the 1-for-20 reverse share split effected on June 16, 2026.

AIFU INC.

Unaudited Condensed Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income
(In thousands, except for shares and per share data)

AIFU INC.

Unaudited Condensed Consolidated Statements of Cash Flow

(In thousands)