Dingdang Health Technology Group (9886) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 2.6% YoY to RMB2,326.9 million; gross margin expanded 1.9 percentage points to 35.0%.

• Net loss narrowed 42.1% YoY to RMB52.0 million; adjusted net loss narrowed 78.2% to RMB5.8 million.

• Growth priorities include expanding smart pharmacy coverage, integrated online/offline healthcare and supply-chain efficiency.

Financial highlights

• Revenue increased from RMB2,267.9 million to RMB2,326.9 million; pharmaceutical and healthcare revenue rose 2.3% to RMB2,260.2 million.

• Gross profit grew to RMB815.8 million from RMB751.7 million; cost of revenue declined 0.3% to RMB1,511.1 million.

• Net loss was RMB52.0 million versus RMB89.8 million; loss attributable to owners was RMB51.7 million versus RMB84.5 million.

• Adjusted net loss margin improved to -0.2% from -1.2%; excluding RMB4.1 million of net FX losses, net loss would have been RMB1.7 million.

Outlook and guidance

• Priorities include deepening smart pharmacy coverage in Beijing, Shanghai and Shenzhen, expanding to more cities, and improving warehouse, distribution and front-end service systems.

• Strategy centers on digital healthcare, online-offline integration, whole-lifecycle health management and an integrated treatment, diagnosis, pharmaceutical products and medical insurance ecosystem.

• Online drug purchasing under national medical insurance and policy reform are viewed as supporting wider access to convenient online/offline healthcare services.