DPC Dash (1405) H1 2026 earnings summary

Executive summary

• Revenue increased 20.8% year-over-year to RMB 3,133.8 million for 1H2026, driven by rapid store expansion, a 33.7% rise in transaction volume, and network growth, despite a decline in average transaction price (ATP) from aggregator subsidies.

• Store count reached 1,550 across 75 cities, with 235 net new stores opened and entry into 15 new cities in H1 2026.

• Same-store transaction count growth (SSTG) was 7.1% overall (8.5% in initial cities, 2.2% in new cities), positive for 22 consecutive quarters.

• Same-store sales growth (SSSG) declined 4.8% overall, with negative SSG in both initial and new city markets due to lower ATP from third-party platform campaigns.

• Loyalty program membership grew to 41.9 million, with 18.1 million new customers in the past year.

Financial highlights

• Initial city markets contributed RMB 1,723.9 million (55% of revenue), new city markets RMB 1,410 million (45%), with new city revenue up 57.3% year-over-year.

• Non-Tier 1 markets now represent 65.7% of revenue, growing 36.5% to RMB 2,059.7 million.

• Delivery sales grew 44.7% to RMB 1,618.8 million (51.7% of revenue); third-party platform deliveries up 81%, own channel deliveries down 11.8%.

• Store-level EBITDA grew 8.3% to RMB 544.5 million (margin 17.4%), store-level operating profit up 2.9% to RMB 390.4 million (margin 12.5%).

• Adjusted EBITDA up 8.6% to RMB 350.7 million (margin 11.2%), adjusted net profit up 7.4% to RMB 98.2 million, and reported net profit up 22.9% to RMB 81.0 million.

• Cash and bank balances at RMB 934.7 million; operating cash flow increased to RMB 504.9 million.

Outlook and guidance

• SSSG expected to remain negative in H2 2026 due to high base and lingering subsidy effects, but forecast to turn positive in 2027 as ATP initiatives and cost-saving measures take effect.

• Store operating profit margin expected to improve in H2 2026 and further in 2027, supported by cost-saving initiatives and margin recovery as subsidies normalize.

• Store expansion target of 350 net new stores in 2026 is on track, with a medium-term goal of 3,000 stores by 2030.

• Continued investment in supply chain centers, digital infrastructure, and brand building to support long-term growth.