Yifeng Pharmacy Chain (603939) Q2 2026 earnings summary

Executive summary

• Achieved revenue of RMB 12.13 billion for H1 2026, up 3.48% year-over-year, driven by organic growth in existing stores and expansion of franchise and distribution businesses.

• Net profit attributable to shareholders rose 9.51% year-over-year to RMB 963.78 million, with cost control and efficiency improvements lowering expense ratios.

• Cash flow from operating activities decreased 7.40% year-over-year due to increased cash outflows for procurement.

• Store network expanded to 15,239 locations (including 4,576 franchise stores) across 10 provinces and cities, with 485 new stores opened and 77 closed.

• Internet business sales reached RMB 1.669 billion, up 23.14% year-over-year, with O2O and B2C channels both contributing.

Financial highlights

• Operating income: RMB 12.13 billion (+3.48% YoY); net profit: RMB 963.78 million (+9.51% YoY).

• Operating cash flow: RMB 1.45 billion (-7.40% YoY); basic EPS: RMB 0.79 (+8.22% YoY); diluted EPS: RMB 0.78 (+9.86% YoY).

• Gross margin and expense ratios improved due to cost controls and efficiency gains.

• Non-recurring profit items contributed RMB 11.86 million, mainly from asset disposals and government subsidies.

Outlook and guidance

• Focus remains on regional market penetration, digital transformation, supply chain optimization, and new retail models.

• Plans to continue expanding store network and enhancing member services, with emphasis on professional health management and digital operations.

• Company expects to maintain steady growth in revenue and profitability through operational improvements and market expansion.