In 2014, Yang Wenlong, then chairman of Renhe Pharmacy, founded DINGDANG HEALTH as his second entrepreneurial venture. The following year, the company launched its DINGDANG Quick Medicine app, promoting "28-minute delivery" to carve a niche in the online pharmaceutical market. The platform operates on a "self-built pharmacy and direct supply from manufacturers" model while offering online consultations, medication guidance, and chronic disease management services.
However, DINGDANG HEALTH faces intense competition in the crowded internet healthcare sector. E-commerce giants have entered the instant medicine delivery space with superior logistics and supply chains, eroding DINGDANG HEALTH’s early advantages in pricing and delivery speed.
Financially, DINGDANG HEALTH lags behind its listed peers—JD Health, Ali Health, and Ping An Good Doctor. In H1 2025, it reported revenue of RMB 2.327 billion but a net loss of RMB 51.67 million. While losses narrowed slightly, its revenue and profitability remain far below competitors. From 2018 to H1 2025, cumulative losses exceeded RMB 6 billion.
**Persistent Losses and Heavy Costs** DINGDANG HEALTH’s asset-heavy model, featuring self-operated pharmacies and delivery teams, drives high operational costs. By H1 2024, it had established hundreds of smart pharmacies nationwide, but fulfillment expenses remain steep. Meanwhile, rivals like JD Health (H1 2025 revenue: RMB 35.3 billion, Non-IFRS profit: RMB 3.57 billion) and Ali Health (H2 FY25 revenue: RMB 16.3 billion, adjusted profit: RMB 970 million) leverage parent companies’ resources for scale and efficiency.
Marketing expenses further strain profitability. Sales and promotion costs accounted for 22.6% of revenue in H1 2025, with 67% of employees dedicated to sales and business development.
**Stock Plunge and Service Complaints** Since its 2022 Hong Kong IPO at HK$12/share, DINGDANG HEALTH’s stock has plummeted 92% to HK$1.01, leaving its market cap at HK$1.3 billion. It was removed from the Hang Seng Composite SmallCap Index in August 2024.
Consumer complaints highlight delivery failures. On platforms like Black Cat, over 2,160 complaints cite delayed or refused deliveries, including instances where couriers threatened to discard orders. Notably, a November 2025 complaint revealed a 1-hour delivery for a 1km-distance pharmacy—far from the promised 28 minutes.
As growth slows and losses mount, DINGDANG HEALTH’s core value proposition faces skepticism, with investors and customers alike questioning its sustainability.