Key takeaway

In 2Q26, the company's revenue and net profit attributable to shareholders of the parent company increased by 13.2% and 18.1% YoY, respectively, driven by combined growth across online e-commerce and offline distribution channels. In 1H26, revenue from offline and e-commerce channels increased by 13.9% and 18.8% YoY, respectively. On the product side, the company's flagship medical research products remained in the growth stage, while premium products and refined marketing operations enhanced profitability. In 1H26, the gross margin less selling expense ratio and net margin were 17.94%, up 1.83pcts YoY, and 10.55%, up 0.43pct YoY, respectively. Looking ahead, the company has set a clear target of doubling both revenue and profit during the 15th Five-Year Plan period. On the product side, the company will continue launching new premium products. Rapid growth in electric toothbrushes is expected to become a second growth driver. On the channel side, the company will refine online channel operations with an emphasis on improving revenue and profit margin in tandem, while continuing to promote premium products and actively develop new offline channels.

Event

The company released its 1H26 financial results: In 1H26, revenue was RMB961mn, up 14.2% YoY. Net profit attributable to shareholders of the parent company was RMB101mn, up 19.1% YoY. Net profit attributable to shareholders of the parent company after deducting non-recurring items was RMB92mn, up 32.4% YoY. Basic EPS was RMB0.59, up 20.4% YoY. Weighted ROE was 6.52%, up 0.83pct YoY.