Huachi Dental 2026H1: Revenue of RMB 87.86 million, down 6.32%, gross margin of orthodontic services up 9.13% year-on-year.

Source: Huachi Dental 2026 Semi-Annual Report

Revenue of RMB 87.8609 million / Net Profit Attributable to Shareholders of the Parent Company of RMB 3.9842 million, up 2176.70% year-on-year / Gross margin of orthodontic business up 9.13 percentage points year-on-year

DentalGoodNews｜On August 25, 2026, Shanghai Huachi Dental Hospital Investment Management Co., Ltd. (hereinafter referred to as "Huachi Dental") released its 2026 semi-annual report. During the reporting period, the company achieved operating revenue of RMB 87.8609 million, down 6.32% from RMB 93.7875 million in the same period of the previous year; net profit attributable to shareholders of the listed company was RMB 3.9842 million, up 2176.70% year-on-year from RMB 175,000 in the same period of the previous year.

Huachi Dental noted that the 6.32% year-on-year decline in total operating revenue was primarily attributed to factors including industry policy changes, adjustments in the overall business environment, increasingly cautious consumer behavior, more transparent and standardized pricing, and intensified competitive pressure from peers. In addition, despite the dual pressures of intensifying industry competition and external environmental changes, the company continued to strengthen cost control, optimize staffing structure, and reduce leasing expenses, with gross margin improving slightly year-on-year to 39.16%.

Source: Huachi Dental 2026 Semi-Annual Report

By business segment, Huachi Dental's dental restoration business generated operating revenue of RMB 33.9377 million, down 5.64% year-on-year, with operating costs of RMB 20.8995 million, down 16.00% year-on-year, and a gross margin of 38.42%, up 7.59 percentage points year-on-year, representing the highest revenue share. Dental implantation revenue reached RMB 27.7684 million, down 8.35% year-on-year, with a relatively smaller cost decline of 4.12% year-on-year, and a gross margin of 41.85%, down 2.57 percentage points year-on-year. Dental diagnosis and treatment revenue was RMB 19.1527 million, down 6.00% year-on-year, with a gross margin of 41.42%, up 1.92 percentage points year-on-year. Orthodontic revenue reached RMB 5.9366 million, down 5.05% year-on-year, with costs declining by 16.33%, exceeding the revenue decline, and gross margin improving by 9.13 percentage points year-on-year.

The denture fabrication and material sales businesses remained relatively small in scale, with reporting period revenues of RMB 94,500 (up 5.23% year-on-year) and RMB 971,100 (up 20.33% year-on-year), respectively. However, as these businesses primarily serve the company's internal clinics with limited external sales, and industry policies have compressed processing and sales profit margins, both segments recorded negative gross margins of -24.49% and -7.98%, down 0.16 and 8.84 percentage points year-on-year, respectively.

Source: Huachi Dental 2026 Semi-Annual Report

In terms of cash flow and assets, the company's net cash flow from operating activities during the reporting period was RMB 15.8366 million, down 9.48% year-on-year. The asset-liability ratio stood at 79.92%, up 1.98 percentage points from the end of the previous year. As of the end of the reporting period, the company's total assets amounted to RMB 234 million, with net assets attributable to shareholders of the listed company at RMB 46.8439 million, down 20.45% year-on-year.

Source: Huachi Dental 2026 Semi-Annual Report

Regarding expense control, Huachi Dental's selling expenses for the first half of the year were RMB 11.5612 million, down 21.54% year-on-year, primarily due to reduced sales commissions and promotional expenses resulting from lower operating revenue. Financial expenses were RMB 2.9378 million, down 40.57% year-on-year, mainly affected by the decrease in the net book value of right-of-use assets and lease liabilities, which led to a reduction in the amortization of unrecognized financing costs.

According to previous reports by DGN, Huachi Dental exhibited a similar pattern of "increased profit without increased revenue" in 2025, with full-year operating revenue declining 13.88% while net profit attributable to shareholders of the parent company grew counter-trend by 84.35%, primarily driven by expense reduction and cost control.

Currently, Huachi Dental states that it has preliminarily established a two-tier medical service system comprising "central flagship clinics + community clinics," and has established a wholly-owned subsidiary, Zhongchi Industrial, responsible for denture fabrication, forming a full industrial chain for oral healthcare. Company management expects that with enhanced brand influence, updated operational and service concepts, and upgraded clinic environments, second-half performance will surpass the level achieved in the same period of the previous year.