Dingdang Health Technology Group (9886) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 0.9% YoY to RMB2,267.9 million; net loss narrowed 23.5% to RMB89.8 million, while adjusted net loss fell to RMB38.5 million.

• Registered platform users reached 43.6 million; online consultations exceeded 3.5 million, supported by 800+ doctors and 400+ pharmacists.

Financial highlights

• Revenue increased to RMB2,267.9 million from RMB2,247.3 million; cost of revenue fell 3.1% to RMB1,516.2 million.

• Gross profit rose to RMB751.7 million from RMB682.9 million; gross margin improved to 33.1% from 30.4%.

• Net loss narrowed to RMB89.8 million; loss attributable to owners was RMB84.5 million, and basic and diluted loss per share improved to RMB0.06 from RMB0.08.

• Adjusted net loss, excluding share-based payments, narrowed to RMB38.5 million from RMB44.1 million; margin improved to 1.7% from 2.0%.

Outlook and guidance

• Priorities include online healthcare insurance payments, smart pharmacies, cold-chain on-demand delivery and AI medical services, with greater service density in core cities.

• Plans include strengthening merchandise, warehousing and distribution capabilities and expanding the integrated online-offline service ecosystem.