Dingdang Health Technology Group (9886) H2 2025 earnings summary

Executive summary

• FY25 revenue rose 4.7% to RMB4,887.8m; net loss narrowed 86.3% to RMB52.1m, while adjusted net profit turned positive at RMB10.7m.

• Growth reflected a denser smart pharmacy network and stronger performance in core cities; gross margin improved with operational efficiency and product-mix changes.

Financial highlights

• Revenue increased 4.7% to RMB4,887.8m; pharmaceutical and healthcare revenue rose 4.5% to RMB4,744.6m.

• Gross profit reached RMB1,723.5m versus RMB1,538.3m in FY24; gross margin increased to 35.3% from 32.9%.

• Net loss narrowed to RMB52.1m from RMB380.0m; loss attributable to owners was RMB49.0m versus RMB376.5m.

• Adjusted net profit was RMB10.7m versus an adjusted net loss of RMB57.2m; excluding RMB11.9m net FX loss, adjusted profit would be RMB22.6m.

Outlook and guidance

• Priorities include consolidating services in Beijing, Shanghai and Shenzhen, expanding service density, improving warehousing and distribution, and strengthening front-end sales capabilities.

• Plans include smart central warehouses, AI intelligent pharmacies, pharmaceutical wholesale-retail integration, and deeper online medical insurance services.

• Management expects continued profitability improvement, supported by the core-city on-demand health-to-home business and efficiency gains.