JD Health International (6618) H1 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 reached CNY 40.9 billion, up 15.9% year-over-year, driven by growth in both product and service revenue and continued industry-leading expansion in core pharmaceutical categories.

• Gross profit increased 20.2% to CNY 10.7 billion, with gross margin improving to 26.1% from 25.2% year-over-year.

• Operating margin improved for the ninth consecutive quarter, with operating income up 49.2% to CNY 3.2 billion and non-IFRS operating profit rising 40.3% year-over-year.

• Expanded presence with over 450 pharmacy stores in 10 cities and broadened healthcare offerings, including integrated healthcare centers and at-home services.

• AI integration and digital healthcare ecosystem investments drove operational efficiency and user engagement.

Financial highlights

• Product revenue increased 15.6% to CNY 33.9 billion, while service revenue grew 17.2% to CNY 7.0 billion.

• Non-IFRS operating profit was CNY 3.5 billion, up 40.3% year-over-year.

• Gross profit was CNY 10.7 billion; gross margin improved 0.9 percentage points year-over-year to 26.1%.

• Non-IFRS net margin was 8.5%, with net cash from operating activities at CNY 4.5 billion.

• Cash and equivalents totaled CNY 71.5 billion as of June 30, 2026.

Outlook and guidance

• Confident in maintaining growth above industry average in H2 2026 and sustaining high single-digit operating margin long-term.

• Expect slower growth in nutrition and supplements in H2 due to regulatory headwinds, but anticipate long-term benefits from compliance and market share gains.

• Focus remains on enhancing user experience, optimizing cost structure, and expanding digital healthcare services.

• Continued disciplined investments in AI and supply chain capabilities.