Wuhan Dazhong Dental Medical (2651) investor relations material

Executive summary

• H1 2026 revenue fell 2.8% YoY to RMB180.576m and profit for the period fell 19.1% to RMB23.133m; orthodontics revenue rose 11.6%.

• Operated 92 dental institutions across 8 cities in Hubei and Hunan; customer visits totaled 356,137 versus 355,181 a year earlier.

Financial highlights

• Revenue was RMB180.576m versus RMB185.798m; gross profit was RMB67.061m versus RMB70.268m, and cost of sales decreased 1.7% to RMB113.5m.

• Profit before tax was RMB25.280m versus RMB31.603m; profit for the period was RMB23.133m versus RMB28.602m.

• Selling and distribution expenses rose 7.5% to RMB17.6m on higher advertising; administrative expenses fell 26.2% to RMB12.2m, mainly on lower listing expenses and share-based payments.

• R&D expenses were RMB3.263m versus RMB3.934m; operating cash flow was RMB22.9m versus RMB35.6m, while investing cash outflow was RMB89.5m versus RMB8.1m.

Outlook and guidance

• Priorities include deepening Central China markets, efficiency-led expansion through organic growth and selective acquisitions, digital upgrades, refined operations, and talent and brand development.

• China’s dental services market is projected to reach RMB200.4bn by 2029; Central China private dental services are expected to grow faster than the national average.