Wuhan Dazhong Dental Medical (2651) H1 2025 earnings summary

Executive summary

• H1 revenue fell 9.2% YoY to RMB185.8m; net profit declined 2.2% to RMB28.6m, while gross and net margins improved to 37.8% and 15.4%.

• Adjusted net profit, a non-IFRS measure, rose 13.9% to RMB34.4m from RMB30.2m.

• Eight outpatient departments opened; the network reached 92 institutions across 8 cities in Hubei and Hunan, with 717 dental chairs and 355,181 H1 customer visits.

Financial highlights

• Revenue was RMB185.8m versus RMB204.5m; gross profit fell 6.1% to RMB70.3m, while cost of sales decreased 10.9% to RMB115.5m.

• Selling expenses fell 28.5% to RMB16.3m after marketing adjustments; administrative expenses rose 14.7% to RMB16.6m, mainly due to listing expenses.

• Operating cash flow was RMB35.6m versus RMB45.4m; investing and financing cash outflows were RMB8.1m and RMB42.7m, respectively.

• Cash and cash equivalents were RMB79.8m at 30 June 2025, down from RMB95.0m at 31 December 2024.

Outlook and guidance

• Priorities include improving existing-store efficiency, refining service and operating processes, strengthening digital customer management, and maintaining centralized cost control.

• Plans include prudent regional expansion, medical talent recruitment and development, stronger specialty and clinical capabilities, and investment in digital tools and data systems.