Beauty Farm Medical and Health Industry (2373) H1 2026 earnings summary

Executive summary

• H1 2026 revenue was RMB1,881.6m, up 29.0% YoY; net profit rose 40.2% to RMB239.4m and adjusted net profit rose 39.9% to RMB262.6m.

• Gross margin expanded 2.1 percentage points to 51.4%; direct-store visits grew 32.0% to 1.21m and annualized active direct-store members reached 220,000, up 45.6%.

• The network totaled 706 locations at June 30, including 395 direct and 311 franchised stores; Siyanli was consolidated from January 2026.

• Operating cash flow increased 34.4% to RMB551.3m; cash and cash-like items totaled RMB2.427bn at June 30, up 21.5% YoY.

Financial highlights

• Revenue was RMB1,881.6m, gross profit RMB966.5m, operating profit RMB334.5m and profit before tax RMB320.2m; net profit was RMB239.4m versus RMB170.8m in H1 2025.

• Adjusted net profit, a non-HKFRS measure, was RMB262.6m versus RMB187.7m; adjusted net profit margin was 14.0%, up 1.1 percentage points YoY.

• Cost of sales and services was RMB915.1m, or 48.6% of revenue, down 2.1 percentage points YoY; selling expense ratio rose 0.4 points to 17.6%, while G&A ratio fell 0.4 points to 15.8%.

• Operating profit rose to RMB334.5m from RMB224m, and profit before tax to RMB320.2m from RMB221m.

Outlook and guidance

• Five-year priorities are premium brand development, a stronger nationwide chain and data-intelligence capabilities, targeting 20 “super cities,” each generating more than RMB100m revenue.

• Growth plans combine organic improvement and acquisitions in beauty and wellness with further consumer healthcare expansion, including commercialization of innovative medicines and medical technologies; no financial forecast figures were stated.

• Plans include a Consumer Healthcare Technology R&D Center and continued R&D in AI-assisted diagnostics.