Dingdang Health Technology Group (9886) H1 2026 earnings summary

Executive summary

• H1 2026 revenue rose 3.5% YoY to RMB2,409.1 million; efficiency gains, product-mix optimization and stronger supply-chain capabilities supported growth amid competition.

• IFRS net loss widened to RMB64.9 million from RMB52.0 million, mainly due to non-cash impairments; adjusted net loss narrowed to RMB1.0 million from RMB5.8 million.

Financial highlights

• Gross profit rose to RMB879.3 million from RMB815.8 million; gross margin expanded to 36.5% from 35.0%.

• Cost of revenue increased 1.2% to RMB1,529.8 million; fulfillment expenses fell 3.4% to RMB214.5 million, or 8.9% of revenue vs. 9.5%.

• Selling and marketing expenses rose 8.3% to RMB569.7 million; G&A fell 34.6% to RMB66.5 million and R&D fell 8.0% to RMB23.0 million.

• Net loss was RMB64.9 million vs. RMB52.0 million; loss attributable to owners was RMB64.4 million vs. RMB51.7 million. Basic and diluted loss per share was RMB0.05 vs. RMB0.04.

• Adjusted net loss margin improved to -0.04% from -0.24%; adjusted figures exclude impairments, acquisition-related amortization and share-based payments, net of tax effects.

Outlook and guidance

• Priorities include optimizing Beijing, Shanghai and Shenzhen operations, upgrading smart pharmacies and logistics, improving store unit economics, and strengthening merchandise and sales capabilities.

• Initiatives include online-offline integration, medical-device retail, disease management, smart pharmacy and vending networks, AI applications, and deeper third-party platform collaboration.

• Potential policy catalysts include cross-province sharing of personal medical-insurance accounts and national medical-insurance coverage for online drug purchases.