IMD 2026H1: Net Profit Attributable to Shareholders of the Parent Company Turns from Loss to Profit, Gross Margin Rises to 50.35%

Source: Emondi 2026 Semi-Annual Report

Revenue increased by 24.35% year-on-year / Net Profit Attributable to Shareholders of the Parent Company increased by 169.32% year-on-year / Gross margin reached 50.35%

DentalGoodNews｜Innovative Material and Devices Co.,Ltd. (hereinafter referred to as "IMD") released its 2026 semi-annual report. During the reporting period, the company achieved operating revenue of RMB 33.8674 million, a year-on-year increase of 24.35%; net profit attributable to shareholders of the listed company was RMB 2.2807 million, a year-on-year increase of 169.32%, turning losses into profits. Net profit attributable to shareholders of the listed company excluding non-recurring gains and losses was RMB 1.9215 million, a year-on-year increase of 135.81%. The difference from net profit attributable to shareholders of the parent company mainly stemmed from non-recurring gains and losses such as government subsidies received during the period, amounting to RMB 359,200.

According to the report, IMD's main business covers the research, development, production, and sales of dental orthodontic and endodontic products. During this reporting period, the main driver of performance recovery was a significant surge in overseas sales, which expanded the overall revenue scale, while cost and expense control remained within a reasonable range.

Source: Emondi 2026 Semi-Annual Report

From a profitability perspective, the company's gross margin improved. In the first half of 2026, the gross margin was 50.35%, an increase of 7.50 percentage points from 42.85% in the same period of the previous year; operating costs were RMB 16.8141 million, a year-on-year increase of 8.02%, with the proportion of operating revenue dropping from 57.15% to 49.65%.

On the cost and expense front, IMD achieved relatively effective control. During the reporting period, selling expenses were RMB 7.8715 million, a year-on-year decrease of 22.84%, with the proportion of operating revenue dropping from 37.46% to 23.24%; administrative expenses were RMB 3.3960 million, a year-on-year decrease of 15.35%; research and development expenses were RMB 2.7305 million, a year-on-year decrease of 22.09%, mainly due to a reduction of RMB 755,000 in employee compensation during the period; financial expenses were RMB 612,100, a year-on-year increase of 132.83%, mainly due to the impact of exchange gains and losses.

Source: Emondi 2026 Semi-Annual Report

In terms of assets and liabilities, as of June 30, 2026, the company's total assets amounted to RMB 56.2546 million, a decrease of 10.73% from the end of the previous year. The monetary fund balance was RMB 17.3626 million, a decrease of 19.48% from the end of the previous year, mainly because the company repaid short-term borrowings of RMB 5 million during the reporting period without taking on new borrowings. The short-term borrowing balance at the end of the period was RMB 14.9175 million, a decrease of 25.14% from the end of the previous year.

In terms of digital layout and technology reserves, IMD launched a "clear aligner + fixed appliance" combined treatment solution, aiming to enhance orthodontic precision and operational efficiency while optimizing patient experience. As of the end of the reporting period, the company held 20 domestic invention patents, 24 utility model patents, 1 U.S. patent, and 2 design patents, in addition to 24 software copyrights.

Source: Emondi 2026 Semi-Annual Report

In terms of operational efficiency, based on the 156 employees disclosed in the financial report, IMD's per-capita output in the first half of 2026 was approximately RMB 217,100 per person, an improvement compared to the same period last year. The company stated that during the reporting period, it further shortened the communication distance with end customers and improved work efficiency through optimized authority allocation.