Dingdang Health (09886.HK) has released its interim results for the first half of 2026, showing steady progress across its digital and physical retail operations. Total revenue reached RMB 2.409 billion during the period, up 3.5% year-on-year, while gross margin improved by 1.5 percentage points to 36.5%.
The company's quick-delivery medicine business achieved simultaneous growth in both online and offline channels, with offline retail revenue climbing 10.7% compared to the same period last year. Adjusted losses narrowed significantly to RMB 1.0 million, representing a loss margin of just 0.04%—an improvement of 82.5%. Fulfillment expenses also declined by 3.4% year-on-year, with their share of revenue dropping by 0.6 percentage points.
The steady expansion of the quick-delivery segment is underpinned by the company's ongoing densification of its smart pharmacy network. These physical outlets leverage geofencing technology to precisely cover core urban areas, while round-the-clock operations ensure nighttime and urgent medication needs are met. An intelligent dispatch system keeps average delivery times within an efficient range, further enhancing service radius and reach—underscoring the irreplaceable role of physical pharmacies as entry points for on-demand healthcare services.
During the period, the company continued refining its supply chain and product mix while deepening collaboration with third-party platforms. Joint efforts included operating medical device flagship stores, launching innovative drug channels, and strengthening cold-chain home delivery capabilities to ensure medication safety and elevate the quality of at-home services.
On the policy front, nine government ministries including the Ministry of Commerce have issued guidelines encouraging pharmacies to transform into health stations. In response, Dingdang Health has accelerated smart pharmacy expansion in Beijing, Shanghai, and Shenzhen, advancing traceability code systems and online medical insurance integration. Aligned with the "15-minute convenience living circle" initiative, these efforts aim to improve community health service accessibility and further extend the boundaries of offline pharmacy services.
As of the reporting period end, the company had partnered with over 7,000 pharmaceutical manufacturers and distributors, consolidating its first-mover advantage in O2O launches of new drugs. The company also deploys its proprietary AI systems to manage health records and medication adherence, while collaborating with top-tier hospitals on teleconsultation and disease management programs.
In terms of social responsibility, Dingdang Health has launched the "Dingdang Ring Plan," upgrading its smart pharmacies in Beijing, Shanghai, and Shenzhen into health stations. These facilities offer outdoor workers hot beverages, emergency care, rest areas, blood pressure checks, and pharmacist consultations. Additionally, the company has joined the Beijing Association for STD/AIDS Prevention and Control, providing post-exposure prophylaxis medication delivery and health education to improve access to specialty medicines while safeguarding patient privacy.