JD Health International (6618) investor relations material

Executive summary

• H1 2026 revenue rose 15.9% YoY to RMB40.9bn, driven by growth in product and service revenue.

• Non-IFRS operating income increased 40.3% to RMB3.5bn; non-IFRS operating margin reached 8.5%, improving for a ninth consecutive quarter.

• Reported operating income rose 49.2% to RMB3.2bn and profit for the period increased 32.6% to RMB3.4bn.

• Strategic priorities included user experience, AI-powered healthcare services and supply chain integration.

Financial highlights

• Product revenue grew 15.6% to RMB33.9bn; service revenue rose 17.2% to RMB7.0bn.

• Gross profit increased 20.2% to RMB10.7bn; gross margin improved to 26.1% from 25.2%.

• Fulfillment expenses rose 15.0% to RMB4.1bn, while the ratio to revenue declined to 10.0%.

• Selling and marketing expenses increased 3.7% to RMB1.9bn, with the ratio to revenue falling to 4.6%; R&D expenses rose 23.5% to RMB909.1m.

• Basic EPS was RMB1.08, up from RMB0.82 YoY.

Outlook and guidance

• H2 growth is expected to exceed the industry, with continued strengthening in online pharmacy retail.

• H2 nutrition and supplements growth is expected to slow from H1, though management anticipates improvement; medical equipment has a positive long-term outlook.

• The long-term operating margin target remains high single digits, supported by scale, supply chain improvements, AI services and operating efficiency.

• Scaling healthcare services and balancing high-frequency, lower-margin products with lower-frequency, higher-margin business could support gross margin improvement.