Dazhong Dental Medical 2026H1: Net Profit Attributable to Shareholders of the Parent Company Reaches 12.318 Million Yuan, Down 22.4% Year-on-Year, Orthodontic Revenue Up 11.6%

Source: Interim results report of Dazhong Dental Medical for the six months ended June 30, 2026

Revenue RMB 181 million / Gross Profit Down 4.6% YoY / Net Profit Down 19.1% YoY

DentalGoodNews｜Wuhan Dazhong Dental Medical Co., Ltd. (hereinafter referred to as "Dazhong Dental Medical") released its interim results for the six months ended June 30, 2026. During the reporting period, the Company achieved revenue of RMB 181 million, down 2.8% year-on-year. Gross profit was RMB 67 million, down 4.6% year-on-year, with a gross margin of 37.1%, down 0.7 percentage points year-on-year.

The Company's net profit was RMB 23 million, down 19.1% year-on-year, with the net profit margin declining from 15.4% in the same period last year to 12.8%. Among this, the net profit attributable to shareholders of the listed company (net profit attributable to shareholders of the parent company) was RMB 12.318 million, down 22.4% year-on-year.

Source: Interim results report of Dazhong Dental Medical for the six months ended June 30, 2026

By business segment, revenue from general dental diagnosis and treatment services was RMB 104 million, up 1.6% year-on-year, accounting for 57.4% of total revenue. Revenue from dental implantation services was RMB 43 million, down 19.4% year-on-year, accounting for 23.9% of total revenue. Revenue from orthodontic services was RMB 34 million, up 11.6% year-on-year, accounting for 18.7% of total revenue. The announcement stated that the decline in implantation service revenue was mainly due to a decrease in the average transaction value per implantation case. The growth in orthodontic service revenue was mainly attributed to an increase in patient visits for orthodontic treatment, as well as a rise in the number of patients opting for higher-priced orthodontic services.

As of June 30, 2026, total patient visits reached 356,100, essentially flat year-on-year, of which new patient visits amounted to 149,600. Patient visits for general dental diagnosis and treatment services were 243,000, down 1.2% year-on-year. Patient visits for dental implantation services were 40,000, with a slight increase year-on-year. Patient visits for orthodontic services were 73,000, up year-on-year.

During the reporting period, the Company's cost of sales was RMB 114 million, down 1.7% year-on-year, primarily due to reduced depreciation and amortization and share-based payments. Selling and distribution expenses were RMB 18 million, up 7.5% year-on-year, mainly due to increased advertising and promotion expenses. Administrative expenses were RMB 12 million, down 26.2% year-on-year, mainly due to reduced listing expenses and share-based payments.

In terms of cash flow, the Company's net operating cash flow was RMB 23 million, down 35.7% year-on-year. Net cash used in investing activities was RMB 89 million, primarily for the purchase of wealth management products and time deposits (totaling approximately RMB 235 million). Net cash used in financing activities was RMB 64 million, primarily for dividend payments to shareholders and repayment of principal on lease liabilities. Cash and deposits amounted to RMB 239 million, down 5.0% from the end of the previous year, mainly due to the payment of the final dividend for fiscal year 2025 to shareholders.

Source: Interim results report of Dazhong Dental Medical for the six months ended June 30, 2026

As of June 30, 2026, the Company's total assets were RMB 481 million, down 6.6% from the end of the previous year. Among this, non-current assets were RMB 200 million, and current assets were RMB 281 million. Net asset value was RMB 349 million, down 6.7% from the end of the previous year. The current ratio decreased from 3.4 times at the end of the previous year to 3.2 times. The Company's total liabilities were RMB 132 million, down 6.3% from the end of the previous year, of which current liabilities were RMB 87 million and non-current liabilities were RMB 45 million.

The report shows that as of June 30, 2026, Dazhong Dental Medical owned 92 oral medical institutions, including 4 for-profit oral hospitals, 78 for-profit oral outpatient departments, and 10 for-profit oral clinics, distributed across 8 cities in Hubei and Hunan provinces.

Dazhong Dental Medica was listed on the Main Board of the Hong Kong Stock Exchange on July 9, 2025, with net proceeds from the global offering of approximately HKD 178 million. As of June 30, 2026, approximately HKD 37 million had been utilized cumulatively, with approximately HKD 141 million remaining unutilized. During the reporting period, approximately HKD 19 million was utilized, and it is expected that the remaining proceeds will be fully utilized by December 31, 2029.

In addition, on June 24, 2026, the Company entered into a placing agreement with Shenghang Financial Holdings Co., Ltd. to place 1.2 million new H-shares at a price of HKD 10.00 per share. The placing was completed on July 15, 2026, with net proceeds of approximately HKD 11 million. As the placing was completed after the reporting period, no proceeds were utilized during the reporting period, and their intended use is consistent with the disclosures in the placing announcement.