Distinct Healthcare Holdings Limited (2677) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 11.1% YoY to RMB1,064.5m; gross profit increased 18.2% to RMB267.0m and gross margin expanded 1.5 percentage points to 25.1%.

• Net profit grew 63.8% to RMB131.4m, while non-IFRS adjusted net profit was RMB25.6m and adjusted operating profit was RMB40.2m.

• Growth priorities include expanding one-stop healthcare institutions, piloting subscription services and developing AI-enabled care and operations.

Financial highlights

• Revenue was RMB1,064.5m, up 11.1% YoY; cost of revenue rose 8.9% to RMB797.5m, below revenue growth.

• Gross profit increased 18.2% to RMB267.0m; gross margin improved to 25.1% from 23.6%, mainly on higher in-person service efficiency and scale.

• Net profit was RMB131.4m versus RMB80.2m; reported results included an RMB118.2m fair-value gain on convertible redeemable preference shares.

• Non-IFRS adjusted net profit rose 139.7% to RMB25.6m; adjusted operating profit rose 224.1% to RMB40.2m, from RMB12.4m.

• Non-IFRS adjusted EBITDA increased 16.8% to RMB173.1m; basic EPS was RMB9.68 versus RMB6.01, and diluted EPS was RMB0.31 versus a loss of RMB0.83.

Outlook and guidance

• 2026 priorities include upgrading institutions in Suzhou, Changsha, Shenzhen, Wuhan and Beijing to the one-stop format.

• Planned subscription services combine innovative drugs with medical services, and nutritional supplements with health-data monitoring; the latter is targeted for launch in Q4 2026.

• A personalised AI health assistant is planned to support family health records, care scheduling and tailored advice; a next-generation AI-native EMR rollout is planned for 2026.

• Specialty plans include child allergy, growth and development, behavioural health and psychology, plus integrated health management for adults aged 45-55.