Distinct Healthcare 2026H1: Revenue of RMB 596 million, up 17% YoY, dental revenue up 48.6%.

Source: Distinct Healthcare Interim Results Announcement

Adjusted net profit turns profitable / Dental revenue up 48.6% / Gross margin 27.3%

DentalGoodNews｜On August 13, Distinct Healthcare Holdings Limited released its interim results announcement for the six months ended June 30, 2026. The report shows that in the first half of 2026, Distinct Healthcare Holdings Ltd. recorded revenue of RMB 596 million (up 17.0% year-on-year); net profit of RMB 83.39 million (up 10.5% year-on-year). Adjusted net profit (Non-GAAP) for the first six months was RMB 28.402 million, turning profitable from a loss of RMB 569,000 in the same period last year.

In terms of profitability, the company's gross margin improved from 22.7% in the same period of 2025 to 27.3%, an increase of 4.6 percentage points year-on-year; adjusted operating profit recorded RMB 38.808 million, surging 937.6% year-on-year. The announcement stated that the rapid growth in adjusted operating profit was mainly attributed to improved operational efficiency driven by network structure optimization, economies of scale from revenue growth, and the empowerment of business operations through digitalization and AI capabilities.

In terms of business structure, the dental business became the core growth driver during the reporting period. In the first half of 2026, Distinct Healthcare Holdings Ltd.'s dental business generated revenue of RMB 116 million, up 48.6% year-on-year; patient visits reached 95,411, up 32.4% year-on-year; average revenue per visit increased to RMB 1,216, up 12.3% year-on-year. According to earlier reports by DGN, Distinct Healthcare Holdings Ltd.'s full-year dental revenue in 2025 was RMB 170 million, meaning that the first half of 2026 alone has already reached nearly 70% of last year's full-year figure.

Source: Distinct Healthcare Interim Results Announcement

In terms of network layout, as of June 30, 2026,Distinct Healthcare Holdings Ltd. operated 18 multi-specialty service outlets in China, including 4 one-stop health center-type outlets and 14 initial standard outlets. Among these, Suzhou Huxi Clinic has completed its one-stop center upgrade, adding departments such as pediatric development and rehabilitation medicine; three one-stop centers in Changsha, Wuhan, and Shenzhen are expected to commence operations in the third quarter of 2026.

In terms of talent and service quality, as of June 30, 2026, the company had a total of 1,726 full-time employees, including 414 full-time physicians and 680 other medical professionals.

Source: Distinct Healthcare Interim Results Announcement

In terms of digital transformation, Distinct Healthcare Holdings Ltd. continues to advance the application of AI in consultation note generation, doctor-patient communication, post-visit follow-up, and patient consultation, and has launched a nationwide multi-agent assisted follow-up system. The company has also initiated R&D on AI long-term health records and next-generation health intelligent agents, with 35.0% of the proceeds from the global offering planned to be invested in AI technology applications.

In terms of cash flow, the company's net cash generated from operating activities in the first half of 2026 was RMB 65.16 million, up 18.0% year-on-year. As of the end of the period, the company's total cash and cash equivalents amounted to approximately RMB 292 million.