Distinct Healthcare Holdings Limited (2677) H1 2026 earnings summary

Executive summary

• H1 2026 revenue rose 17.0% YoY to RMB595.9m; gross profit increased 40.5% to RMB162.4m and net profit rose 10.5% to RMB83.4m.

• In-person healthcare revenue grew 17.6% to RMB549.7m, or 28.8% organically excluding acquisitions; growth was supported by clinic upgrades, multi-specialty demand and membership growth.

• Adjusted operating profit reached RMB38.8m as gross margin improved 4.6 percentage points to 27.3%.

Financial highlights

• Revenue was RMB595.9m, up 17.0% YoY; cost of revenue rose 10.1% to RMB433.5m.

• Gross profit increased 40.5% to RMB162.4m; reported net profit rose 10.5% to RMB83.4m.

• Adjusted net profit was RMB28.4m versus an adjusted loss of RMB0.6m; adjusted operating profit was RMB38.8m versus RMB3.7m.

• Adjusted EBITDA increased 45.5% to RMB103.8m from RMB71.3m.

Outlook and guidance

• Three upgraded one-stop institutions in Changsha, Wuhan and Shenzhen were expected to begin operations sequentially in Q3 2026.

• Priorities include upgrading existing institutions, expanding multi-specialty collaboration and membership operations, and extending online-offline services across prevention, diagnosis and long-term health management.

• Plans include piloting subscription services centered on innovative medicines and nutritional supplements, and developing personalized AI health assistants.