Group 1: Financial Performance - Company reported a revenue of 2.327 billion yuan for the first half of 2025, representing a 2.6% increase compared to 2.268 billion yuan in the same period last year [1] - Losses narrowed by 42.1% compared to the same period in 2024, with adjusted net losses reduced by 78.2% [1] - Improvement attributed to increased gross margin and optimized administrative expenses, indicating effective results from the company's smart transformation efforts [1] Group 2: Smart Pharmacy Initiatives - Company continues to invest in smart pharmacy construction, with the introduction of intelligent drug sorting and scanning devices [2] - These devices utilize machine vision technology and cloud computing, completing sorting and scanning of a single drug in under 10 seconds [2] - Nearly half of the orders are currently completed by smart devices, with plans for further increases in sorting efficiency [2] Group 3: "Xingyuan System" Capabilities - The proprietary "Xingyuan System" supports various subsystems, enhancing the smart pharmacy's operational capabilities [3] - The "Tianyan Zhizhi" feature optimizes site selection, expanding service range from 500 meters to 5 kilometers [3] - The use of robotic collaboration in four major intelligent warehouses has improved picking efficiency by 80% and reduced labor costs by 30% [3] Group 4: AI Technology in Service Optimization - Company has developed AI products such as Smart Little Dingdang, Health GPT, and AI consultation assistants to enhance user service efficiency [4] - Smart Little Dingdang can address over 80% of medication consultation queries using advanced models [4] - These technologies not only improve user experience but also help the company accumulate valuable data resources [4]

Core Viewpoint - Dingtang Health reported a revenue of 2.327 billion yuan for the first half of 2025, reflecting a year-on-year growth of 2.6%, with a significant reduction in losses compared to the previous year [1][2] Financial Performance - Revenue for the first half of 2025 was 2.327 billion yuan, up 2.6% year-on-year [1] - Gross profit reached 816 million yuan, with a gross margin of 35% [1] - The company incurred a loss of 52.02 million yuan, a 42.1% improvement compared to the same period in 2024 [1] - Adjusted net profit loss was 5.759 million yuan, narrowing by 78.2% year-on-year [1] Business Strategy and Operations - The revenue increase was attributed to optimized city layouts and a focus on key regions, particularly in major cities like Beijing, Shanghai, and Shenzhen [1] - The company is enhancing its smart pharmacy network and improving supply chain services, leading to significant operational efficiency gains [1] - Dingtang Health's fast drug business showed steady growth, and the company is leveraging omnichannel retail to reach users effectively [1] Strategic Initiatives - Dingtang Health is accelerating its strategic upgrade with the A-LL dual-driven growth model, launching initiatives like the "Original Drug Supply Alliance" and "New Special Drug Lifeboat Plan" [2] - The company is focusing on technological innovation, upgrading its multi-functional smart pharmacies, and optimizing its operational systems [2] - Future strategies include advancing user lifecycle health management and expanding the smart center warehouse construction to integrate wholesale and retail operations [2]

Core Insights - Dingdang Health (09886) reported a revenue of RMB 2.327 billion for the six months ending June 30, 2025, representing a year-on-year increase of 2.6% [1] - The company recorded a loss attributable to owners of RMB 51.671 million, a reduction of 38.84% compared to the previous year [1] - Basic loss per share was RMB 0.04 [1] Revenue Growth - The increase in total revenue is attributed to the company's optimization of urban layout, focusing on key regions, and establishing cities like Beijing, Shanghai, and Shenzhen as "the best health service entry points for residents" [1] - The company actively expanded and densified its local smart pharmacy network, contributing to business growth [1] Operational Efficiency - The company improved its supply chain service levels in the layout of drugs and goods, leading to a significant enhancement in overall operational efficiency [1] - The narrowing of losses and improvement in performance were supported by an increase in gross margin to 35.0%, up by 1.9 percentage points year-on-year [1] - The effectiveness of refined operations and continuous cost reduction efforts resulted in a notable improvement in profitability [1]

Core Insights - Dingdang Health (09886.HK) reported total revenue of RMB 2,326.9 million for the six months ending June 30, 2025, representing a year-on-year increase of 2.6% [1] - The revenue growth is attributed to the optimization of urban layout, focusing on key regions, and enhancing local smart pharmacy networks in cities like Beijing, Shanghai, and Shenzhen [1] - The company's net loss narrowed to RMB 52.0 million, with adjusted net loss at RMB 5.8 million; excluding foreign exchange losses of RMB 4.1 million, the loss would further reduce to RMB 1.7 million [1] - The improvement in loss is linked to an increase in gross margin to 35.0%, up by 1.9 percentage points year-on-year, alongside effective cost reduction and operational efficiency measures [1] Revenue Performance - Total revenue for the six months ending June 30, 2025, was RMB 2,326.9 million, a 2.6% increase compared to the previous year [1] - The growth in revenue is driven by strategic urban development and enhanced service offerings in key metropolitan areas [1] Profitability Metrics - The net loss for the period was reduced to RMB 52.0 million, with an adjusted net loss of RMB 5.8 million [1] - The gross margin improved to 35.0%, reflecting a 1.9 percentage point increase year-on-year, indicating better profitability [1] - Cost control measures and operational improvements have significantly enhanced the company's profitability [1]

DINGDANG HEALTH TECHNOLOGY GROUP LTD. 叮噹健康科技集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：09886） 提名委員會的職權範圍 叮 噹 健 康 科 技 集 團 有 限 公 司（「本公司」）提 名 委 員 會（「委員會」）的 職 權 範 圍（「職權範圍」）載 列 如 下。 – 1 – 1. 目 的 1.1 委 員 會 的 目 的 旨 在 確 認、考 慮 並 向 本 公 司 董 事（「董 事」）會（「董 事 會」）推 薦 擔 任 董 事 的 適 當 人 選，監 督 評 估 董 事 會 表 現 的 流 程， 以 及 制 定 及 向 董 事 會 建 議 符 合 任 何 適 用 法 律、法 規 與 上 市 標 準 的 提 名 指 引。 2. 組 成 2.1 委 員 會 成 員 由 董 事 會 不 時 委 任，其 中 大 多 數 成 員 須 為 符 合 香 港 聯 合 交 易 所 有 限 公 司 證 券 上 市 規 則（「上市規則」，經 不 時 修 訂） 不 時 規 定 之 獨 立 性 要 求 的 獨 立 非 執 行 董 事。委員會包括至少一 名 不 同 性 別 的 ...

[Financial Summary](index=1&type=section&id=Financial%20Summary) The company achieved a 2.6% revenue growth and significantly narrowed losses, with adjusted net loss improving by 78.2% for the period [Interim Results Highlights](index=1&type=section&id=Interim%20Results%20Highlights) For the six months ended June 30, 2025, the company's revenue increased by 2.6% year-on-year, with a significant narrowing of losses, including a 42.1% reduction in loss for the period, a 78.2% reduction in adjusted net loss (non-IFRS measure), and a 1 percentage point improvement in adjusted net loss margin Interim Results Highlights (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 2,326,907 | 2,267,894 | Increase 2.6% | | Loss for the period | (52,021) | (89,801) | Narrowed 42.1% | | Loss for the period attributable to owners of the Company | (51,671) | (84,491) | Narrowed 38.8% | | Adjusted net loss (non-IFRS measure) | (5,759) | (26,448) | Narrowed 78.2% | | Adjusted net loss margin (non-IFRS measure) | (0.2%) | (1.2%) | Improved 1 percentage point | [Management Discussion and Analysis](index=3&type=section&id=Management%20Discussion%20and%20Analysis) Total revenue grew by 2.6% with significant loss reduction and gross margin improvement, driven by strategic optimization and a focus on omni-channel retail [Business Review](index=3&type=section&id=Business%20Review) Total revenue grew by 2.6% with significant loss reduction and gross margin improvement, driven by strategic optimization and a focus on omni-channel retail - Total revenue reached **RMB 2,326.9 million**, a **2.6% year-on-year increase**, primarily attributed to optimized urban layout, expanded smart pharmacy network, and improved supply chain services[4](index=4&type=chunk) - Net loss narrowed to **RMB 52.0 million**, and adjusted net loss narrowed to **RMB 5.8 million**; excluding net exchange losses, the loss would further narrow to RMB 1.7 million[5](index=5&type=chunk) - Gross margin improved to **35.0%**, a **1.9 percentage point increase** year-on-year, reflecting the effectiveness of refined operations and cost reduction initiatives[5](index=5&type=chunk) - The company focuses on an omni-channel instant retail business model, emphasizing a full lifecycle health management and full disease course management strategy, forming a "medical, testing, pharmacy, insurance" collaborative ecosystem[7](index=7&type=chunk) - Actively responding to national policies promoting health consumption, guiding new health consumption scenarios such as "Internet + e-prescription + online and offline"[6](index=6&type=chunk) [Quick Medicine Business](index=4&type=section&id=Quick%20Medicine%20Business) Quick medicine business showed steady growth, particularly in online direct sales, supported by enhanced supply chain and cold chain logistics - The quick medicine business maintained steady overall growth, strengthening urban smart central warehouses and cold chain home delivery logistics capabilities[8](index=8&type=chunk)[9](index=9&type=chunk) Quick Medicine Business Revenue Details (For the six months ended June 30) | Channel | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Online Direct Sales | 1,688.5 | 1,612.7 | Increase 4.7% | | Business Distribution | 266.7 | 274.3 | Decrease 2.8% | | Offline Retail | 305.0 | 323.1 | Decrease 5.6% | | Other Businesses | 66.7 | 57.8 | Increase 15.4% | [Online Consultation](index=6&type=section&id=Online%20Consultation) Online consultation services are provided by over 800 doctors and 400 pharmacists, integrated with a smart inquiry system across the pharmacy network - The medical team includes over **800 doctors** and **400 medical pharmacists**, providing online consultation services combined with a smart inquiry system[14](index=14&type=chunk) [Chronic Disease and Health Management](index=6&type=section&id=Chronic%20Disease%20and%20Health%20Management) The company leverages AI and health data to provide chronic disease management and medication adherence services, partnering with medical institutions for patient care - Through AI systems, health profiles, and medical knowledge bases, the company provides health record management and DOT medication adherence services[15](index=15&type=chunk) - Actively collaborates with medical institutions and top-tier hospitals to explore patient and medical services, offering disease course management, remote consultation, and health management[15](index=15&type=chunk) [Public Welfare and Social Responsibility](index=6&type=section&id=Public%20Welfare%20and%20Social%20Responsibility) The company actively fulfills social responsibility through initiatives like supporting children with leukemia and ensuring medication access during public holidays - Launched the "Big City, Small Love, Lighting the Medical Path" initiative to care for children with leukemia and their families[17](index=17&type=chunk) - Continuously conducted the "Open During Spring Festival" activity for **9 consecutive years**, ensuring residents' health service needs for consultation and medication purchase are met during the Spring Festival[17](index=17&type=chunk) [Future Outlook](index=7&type=section&id=Future%20Outlook) The company plans to advance digital healthcare through online-offline integration, expand health management strategies, and develop smart central warehouses for integrated pharmaceutical retail - Will focus on digital healthcare, popularizing user habits and improving accessibility through online and offline integration, while enabling online medical insurance purchases[18](index=18&type=chunk) - Based on the omni-channel instant retail business model, will prioritize full lifecycle health management and full disease course management strategies, and actively promote smart central warehouse construction to integrate wholesale and retail pharmaceutical goods[18](index=18&type=chunk) - Will continue to consolidate service advantages in major cities like Beijing, Shanghai, and Shenzhen, continuously expanding scale and improving service density, and "strengthening product power and enhancing sales power"[18](index=18&type=chunk) [Revenue](index=8&type=section&id=Revenue) Revenue increased by 2.6% to RMB 2,326.9 million, primarily from pharmaceutical and healthcare business growth due to network expansion and product diversification Revenue (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 2,326.9 | 2,267.9 | Increase 2.6% | | Pharmaceutical and Healthcare Business Revenue | 2,260.2 | 2,210.1 | Increase 2.3% | - Revenue growth primarily attributed to the expanded smart pharmacy network and diversified product categories[19](index=19&type=chunk) [Cost of Revenue](index=8&type=section&id=Cost%20of%20Revenue) Cost of revenue decreased by 0.3% to RMB 1,511.1 million, driven by enhanced operating efficiency and shifts in product sales mix Cost of Revenue (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Cost of Revenue | 1,511.1 | 1,516.2 | Decrease 0.3% | - The decrease in cost of revenue was primarily due to improved operating efficiency and changes in the product sales mix[20](index=20&type=chunk) [Gross Profit and Gross Margin](index=8&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit increased to RMB 815.8 million, with gross margin rising to 35.0%, reflecting improved operating efficiency and product mix Gross Profit and Gross Margin (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Gross Profit | 815.8 | 751.7 | Increase 8.5% | | Gross Margin | 35.0% | 33.1% | Increase 1.9 percentage points | - The increase in gross margin was primarily due to improved operating efficiency and changes in the product sales mix[21](index=21&type=chunk) [Fulfillment Expenses](index=8&type=section&id=Fulfillment%20Expenses) Fulfillment expenses decreased by 0.6% to RMB 222.0 million, improving as a percentage of revenue due to enhanced system efficiency Fulfillment Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Fulfillment Expenses | 222.0 | 223.3 | Decrease 0.6% | | Fulfillment Expenses as % of Revenue | 9.5% | 9.8% | Decrease 0.3 percentage points | - The decrease in fulfillment expenses was primarily due to continuous optimization of the fulfillment system, which improved fulfillment efficiency[22](index=22&type=chunk) [Sales and Marketing Expenses](index=9&type=section&id=Sales%20and%20Marketing%20Expenses) Sales and marketing expenses increased by 8.2% to RMB 525.9 million, rising as a percentage of revenue due to expanded activities Sales and Marketing Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Sales and Marketing Expenses | 525.9 | 485.9 | Increase 8.2% | | Sales and Marketing Expenses as % of Revenue | 22.6% | 21.4% | Increase 1.2 percentage points | - This increase was primarily due to increased sales and marketing activities[23](index=23&type=chunk) [R&D Expenses](index=9&type=section&id=R%26D%20Expenses) R&D expenses increased by 2.5% to RMB 25.0 million, maintaining a stable 1.1% of revenue R&D Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | R&D Expenses | 25.0 | 24.4 | Increase 2.5% | | R&D Expenses as % of Revenue | 1.1% | 1.1% | Remained stable | [General and Administrative Expenses](index=9&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses decreased by 19.3% to RMB 101.7 million, improving as a percentage of revenue due to reduced employee welfare costs General and Administrative Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | General and Administrative Expenses | 101.7 | 126.1 | Decrease 19.3% | | General and Administrative Expenses as % of Revenue | 4.4% | 5.6% | Decrease 1.2 percentage points | - The decrease in general and administrative expenses was primarily due to lower employee welfare expenses[25](index=25&type=chunk) [Other Gains and Losses, Net](index=9&type=section&id=Other%20Gains%20and%20Losses%2C%20Net) The company reported a net other loss of RMB 3.5 million, shifting from a gain, mainly due to increased exchange losses and reduced fair value gains Other Gains and Losses, Net (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Other Gains and Losses, Net | (3.5) | 6.7 | Shifted from gain to loss | | Reasons for Change | Increased net exchange losses and reduced fair value gains on financial assets | | | [Other Income](index=9&type=section&id=Other%20Income) Other income remained stable at RMB 24.3 million for the six months ended June 30, 2025 Other Income (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Other Income | 24.3 | 25.3 | Remained stable | [Finance Costs](index=10&type=section&id=Finance%20Costs) Finance costs increased by 25.0% to RMB 5.5 million for the six months ended June 30, 2025 Finance Costs (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Finance Costs | 5.5 | 4.4 | Increase 25.0% | [Income Tax Expense](index=10&type=section&id=Income%20Tax%20Expense) Income tax expense increased by 27.9% to RMB 7.8 million, primarily driven by higher taxable income Income Tax Expense (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Income Tax Expense | 7.8 | 6.1 | Increase 27.9% | - The increase in income tax expense was primarily due to an increase in taxable income[29](index=29&type=chunk) [Loss for the Period](index=10&type=section&id=Loss%20for%20the%20Period) Net loss for the period decreased by 42.1% to RMB 52.0 million Loss for the Period (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Loss for the Period | (52.0) | (89.8) | Decrease 42.1% | [Non-IFRS Measures: Adjusted Net Loss and Adjusted Net Loss Margin](index=10&type=section&id=Non-IFRS%20Measures%3A%20Adjusted%20Net%20Loss%20and%20Adjusted%20Net%20Loss%20Margin) Adjusted net loss and adjusted net loss margin are presented as supplementary metrics, with adjusted net loss significantly narrowing after non-cash adjustments - Adjusted net loss (non-IFRS measure) is derived from loss for the period by excluding certain reconciling items, such as share-based payment expenses, goodwill impairment, and amortization of other intangible assets[31](index=31&type=chunk) Reconciliation of Net Loss to Adjusted Net Loss (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net loss for the period | (52,021) | (89,801) | | Add: Share-based payments | 36,961 | 51,283 | | Add: Impairment loss recognized on goodwill | – | 1,104 | | Add: Amortization of other intangible assets arising from acquisitions (net of income tax effect) | 9,301 | 10,966 | | Adjusted net loss for the period (non-IFRS measure) | (5,759) | (26,448) | | Adjusted net loss margin (non-IFRS measure) | (0.2%) | (1.2%) | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=12&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Revenue grew and gross profit improved, while loss for the period and total comprehensive expenses significantly narrowed [Profit or Loss Statement](index=12&type=section&id=Profit%20or%20Loss%20Statement) Revenue grew and gross profit improved, while loss for the period and total comprehensive expenses significantly narrowed Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 2,326,907 | 2,267,894 | | Cost of revenue | (1,511,098) | (1,516,158) | | Gross profit | 815,809 | 751,736 | | Fulfillment expenses | (222,034) | (223,307) | | Sales and marketing expenses | (525,884) | (485,874) | | R&D expenses | (24,993) | (24,355) | | General and administrative expenses | (101,737) | (126,087) | | Other gains and losses, net | (3,515) | 6,654 | | Other income | 24,301 | 25,296 | | Finance costs | (5,516) | (4,351) | | Loss before income tax | (44,246) | (83,664) | | Income tax expense | (7,775) | (6,137) | | Loss for the period | (52,021) | (89,801) | | Total comprehensive expenses for the period | (41,675) | (128,546) | | Loss per share (RMB) | (0.04) | (0.06) | [Condensed Consolidated Statement of Financial Position](index=14&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets increased to RMB 2,892.8 million, with notable shifts in non-current and current assets, and a significant rise in total liabilities [Financial Position Statement](index=14&type=section&id=Financial%20Position%20Statement) Total assets increased to RMB 2,892.8 million, with notable shifts in non-current and current assets, and a significant rise in total liabilities Summary of Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-current Assets | 538,880 | 431,062 | | Total Current Assets | 2,353,949 | 2,201,613 | | Total Assets | 2,892,829 | 2,632,675 | | **Equity** | | | | Total Equity | 1,675,179 | 1,680,230 | | **Liabilities** | | | | Total Non-current Liabilities | 220,655 | 120,425 | | Total Current Liabilities | 996,995 | 832,020 | | Total Liabilities | 1,217,650 | 952,445 | - Right-of-use assets increased from **RMB 167.1 million** to **RMB 277.8 million**, and equity instruments at fair value through other comprehensive income increased from **RMB 60.0 million** to **RMB 70.3 million**[36](index=36&type=chunk) - Among current assets, financial assets at fair value through profit or loss increased from nil to **RMB 345.0 million**, time deposits increased from nil to **RMB 437.9 million**, while cash and cash equivalents decreased from **RMB 1,218.0 million** to **RMB 576.3 million**[36](index=36&type=chunk) - Non-current lease liabilities increased from **RMB 97.7 million** to **RMB 200.2 million**, and trade payables increased from **RMB 351.2 million** to **RMB 516.2 million**[37](index=37&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the basis of preparation, accounting policies, and specific line items within the condensed consolidated financial statements [General Information](index=16&type=section&id=General%20Information) The company, incorporated in the Cayman Islands and listed on HKEX, primarily operates in China's pharmaceutical and healthcare sector, with financials presented in RMB - The company was incorporated in the Cayman Islands, with its shares listed on the Main Board of The Stock Exchange of Hong Kong Limited since September 14, 2022[38](index=38&type=chunk) - Primarily engaged in providing pharmaceutical and healthcare businesses within China, and the condensed consolidated financial statements are presented in RMB[38](index=38&type=chunk)[39](index=39&type=chunk) [Basis of Preparation](index=16&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with IAS 34 and HKEX Listing Rules disclosure requirements - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[40](index=40&type=chunk) [Accounting Policies](index=16&type=section&id=Accounting%20Policies) Financial statements are prepared on a historical cost basis, with no significant impact from revised IFRS accounting standards during the interim period - The condensed consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments measured at fair value[41](index=41&type=chunk) - The application of amendments to International Financial Reporting Standards during this interim period had no significant impact on the Group's financial position and performance for the current and prior periods[43](index=43&type=chunk) [Segment Information](index=17&type=section&id=Segment%20Information) The Group operates as a single reportable segment, with all non-current assets and revenue originating from China and no significant customer concentration - The Group has only one reportable segment, with the chief operating decision-maker reviewing consolidated results[44](index=44&type=chunk) - All of the Group's non-current assets and revenue are located in China, and no revenue from transactions with a single external customer accounted for 10% or more of the Group's revenue[44](index=44&type=chunk) [Revenue (Note 5)](index=18&type=section&id=Revenue%20%28Note%205%29) Customer contract revenue primarily stems from pharmaceutical and healthcare businesses, with recognition mostly occurring at a point in time Breakdown of Revenue from Contracts with Customers (For the six months ended June 30) | Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Pharmaceutical and healthcare businesses | 2,260,218 | 2,210,057 | | Others* | 66,689 | 57,837 | | **Total Revenue from Contracts with Customers** | **2,326,907** | **2,267,894** | | Timing of revenue recognition: At a point in time | 2,260,218 | 2,210,057 | | Timing of revenue recognition: Over time | 66,689 | 57,837 | * Others refer to marketing services, market service fees and other income. [Loss Before Income Tax (Note 6)](index=19&type=section&id=Loss%20Before%20Income%20Tax%20%28Note%206%29) Loss before income tax accounts for various expenses including cost of inventories, employee benefits, depreciation, amortization, and auditor's remuneration Deductions for Loss Before Income Tax (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 1,507,543 | 1,515,673 | | Impairment provision for inventories | 3,555 | 485 | | Total employee benefit expenses | 221,591 | 258,927 | | Depreciation of property and equipment | 7,475 | 7,739 | | Depreciation of right-of-use assets | 44,056 | 43,494 | | Amortization of other intangible assets | 15,095 | 18,541 | | Auditor's remuneration | 940 | 1,180 | [Other Gains and Losses, Net (Note 7)](index=20&type=section&id=Other%20Gains%20and%20Losses%2C%20Net%20%28Note%207%29) Net other gains and losses shifted to a loss, mainly due to increased exchange losses, asset disposal losses, and reduced fair value gains on financial assets Details of Other Gains and Losses, Net (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net exchange (losses) / gains | (4,086) | 3,008 | | Loss on disposal of property and equipment | (408) | (5) | | Fair value gains on financial assets at fair value through profit or loss | 1,982 | 4,502 | | Loss on early termination of leases | (1,271) | (706) | | Impairment loss recognized on goodwill | – | (1,104) | | Others | 268 | 959 | | **Total** | **(3,515)** | **6,654** | [Other Income (Note 8)](index=20&type=section&id=Other%20Income%20%28Note%208%29) Other income comprises bank interest, lease deposit interest, government grants, rental income, and dividends from equity instruments Details of Other Income (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank deposit interest income | 15,002 | 13,826 | | Lease deposit interest | 262 | 259 | | Government grants | 3,921 | 5,017 | | Rental income – fixed | 1,060 | 2,345 | | Dividends from equity instruments at fair value through other comprehensive income | 4,056 | 3,849 | | **Total** | **24,301** | **25,296** | [Finance Costs (Note 9)](index=21&type=section&id=Finance%20Costs%20%28Note%209%29) Finance costs increased during the reporting period - Finance costs increased from **RMB 4.4 million** in 2024 to **RMB 5.5 million** in 2025[28](index=28&type=chunk) [Impairment Losses under ECL Model (Note 10)](index=21&type=section&id=Impairment%20Losses%20under%20ECL%20Model%20%28Note%2010%29) Total impairment losses under the ECL model amounted to RMB 677 thousand, mainly from trade receivables, partially offset by other receivables reversals Impairment Losses under ECL Model (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 1,107 | 2,542 | | Other receivables | (430) | (343) | | **Total** | **677** | **2,199** | [Income Tax Expense (Note 11)](index=21&type=section&id=Income%20Tax%20Expense%20%28Note%2011%29) Income tax expense, totaling RMB 7,775 thousand, is composed of current and deferred income tax Income Tax Expense Details (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax – current period | 10,528 | 7,910 | | Current income tax – under-provision in prior periods | – | 390 | | Deferred income tax | (2,753) | (2,163) | | **Total** | **7,775** | **6,137** | [Earnings Per Share (Note 12)](index=22&type=section&id=Earnings%20Per%20Share%20%28Note%2012%29) Basic and diluted loss per share narrowed to RMB 0.04, with no difference due to the anti-dilutive effect of restricted share units Loss Per Share and Number of Shares (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (RMB thousand) | (51,671) | (84,491) | | Weighted average number of ordinary shares | 1,299,372,897 | 1,322,658,246 | | Basic and diluted loss per share (RMB) | (0.04) | (0.06) | - For the six months ended June 30, 2025, potential ordinary shares were not included in the calculation of diluted loss per share as they had an anti-dilutive effect, thus diluted loss per share was the same as basic loss per share[63](index=63&type=chunk) [Trade and Other Receivables and Prepayments (Note 13)](index=23&type=section&id=Trade%20and%20Other%20Receivables%20and%20Prepayments%20%28Note%2013%29) Total trade and other receivables and prepayments were RMB 363.5 million, with overdue trade receivables not impaired due to expected settlement and stable credit quality Details of Trade and Other Receivables and Prepayments (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Subtotal of Trade Receivables | 128,141 | 118,245 | | Subtotal of Other Receivables and Prepayments | 235,363 | 255,891 | | **Total** | **363,504** | **374,136** | | Lease deposits (non-current) | 17,099 | 15,495 | Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 106,443 | 99,516 | | 3 to 6 months | 6,676 | 7,784 | | 6 to 12 months | 15,169 | 7,396 | | Over 12 months | 3,655 | 6,244 | | Less: Provision for expected credit losses | (3,802) | (2,695) | | **Total** | **128,141** | **118,245** | - As of June 30, 2025, the balance of trade receivables included gross amounts of **RMB 34.3 million** that were past due but not impaired, as the company is confident in subsequent settlements and customer credit quality has not deteriorated[65](index=65&type=chunk) [Trade and Other Payables (Note 14)](index=25&type=section&id=Trade%20and%20Other%20Payables%20%28Note%2014%29) Total trade and other payables significantly increased to RMB 845.9 million, with most trade payables due within three months Details of Trade and Other Payables (As of June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Subtotal of Trade Payables | 521,133 | 374,151 | | Subtotal of Other Payables | 324,765 | 335,375 | | **Total** | **845,898** | **709,526** | Ageing Analysis of Trade Payables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 473,838 | 307,142 | | 3 to 6 months | 27,251 | 33,299 | | 6 to 12 months | 8,368 | 13,531 | | Over 12 months | 11,676 | 20,179 | | **Total** | **521,133** | **374,151** | [Dividends (Note 15)](index=26&type=section&id=Dividends%20%28Note%2015%29) No dividends were paid or proposed to ordinary shareholders or non-controlling interests for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Company neither paid nor proposed any dividends to ordinary shareholders[68](index=68&type=chunk) - For the six months ended June 30, 2025, certain subsidiaries did not declare and pay dividends to non-controlling interests (RMB 8,949 thousand was paid in the corresponding period of 2024)[68](index=68&type=chunk) [Other Information](index=27&type=section&id=Other%20Information) This section covers liquidity, capital resources, commitments, investments, foreign exchange risk, contingent liabilities, employee information, and corporate governance matters [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased to RMB 576.3 million, with increased operating cash flow offset by higher investing activities for financial assets and time deposits Cash Flow Summary (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash from operating activities | 188,171 | 75,009 | | Net cash (used in) / from investing activities | (778,922) | 32,245 | | Net cash used in financing activities | (46,826) | (62,620) | | Net (decrease) / increase in cash and cash equivalents | (637,577) | 44,634 | | Cash and cash equivalents at end of period | 576,274 | 1,233,580 | - Net cash from operating activities increased primarily due to a decrease in loss before income tax, as well as adjustments for non-cash and non-operating items and changes in working capital[71](index=71&type=chunk) - Net cash used in investing activities was mainly attributable to the purchase of financial assets at fair value through profit or loss of **RMB 830.0 million** and placement of time deposits of **RMB 432.2 million**, partially offset by the redemption of financial assets of **RMB 487.0 million**[72](index=72&type=chunk) - Net cash used in financing activities was primarily attributable to the repayment of lease liabilities of **RMB 41.3 million** and payment of interest of **RMB 5.5 million**[73](index=73&type=chunk) [Borrowings and Capital Liabilities](index=28&type=section&id=Borrowings%20and%20Capital%20Liabilities) The company had no bank borrowings as of June 30, 2025, thus no gearing ratio was presented - As of June 30, 2025, the company had no bank borrowings, and therefore, no gearing ratio was presented[74](index=74&type=chunk) [Capital Expenditure](index=28&type=section&id=Capital%20Expenditure) Capital expenditure totaled RMB 13.4 million, mainly for property, equipment, right-of-use assets, and other intangible assets Capital Expenditure (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Capital Expenditure | 13.4 | 13.8 | - Capital expenditure primarily included purchases of property and equipment, payments for right-of-use assets, and purchases of other intangible assets[75](index=75&type=chunk) [Capital Commitments](index=28&type=section&id=Capital%20Commitments) The company had no significant capital commitments as of June 30, 2025 - As of June 30, 2025, the company had no significant capital commitments[76](index=76&type=chunk) [Asset Pledges](index=29&type=section&id=Asset%20Pledges) The company had no significant asset pledges as of June 30, 2025 - As of June 30, 2025, the company had no significant asset pledges[77](index=77&type=chunk) [Major Investments Held](index=29&type=section&id=Major%20Investments%20Held) The company made or held no major investments for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the company made or held no major investments[78](index=78&type=chunk) [Future Plans for Major Investments and Capital Assets](index=29&type=section&id=Future%20Plans%20for%20Major%20Investments%20and%20Capital%20Assets) The Group has no additional plans for major investments or capital assets beyond those disclosed in the prospectus - As of June 30, 2025, other than those disclosed in the "Future Plans and Use of Proceeds" section of the prospectus, the Group had no other plans for major investments and capital assets[79](index=79&type=chunk) [Significant Acquisitions and/or Disposals of Subsidiaries and Affiliates](index=29&type=section&id=Significant%20Acquisitions%20and%2For%20Disposals%20of%20Subsidiaries%20and%20Affiliates) The company had no significant acquisitions or disposals of subsidiaries and affiliates for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the company had no significant acquisitions and/or disposals of subsidiaries and affiliates[80](index=80&type=chunk) [Foreign Exchange Risk](index=29&type=section&id=Foreign%20Exchange%20Risk) The Group's functional currency is RMB, with foreign exchange risk arising from non-RMB transactions, and no hedging contracts are in place - The functional currency of the Group's entities is RMB, and foreign exchange risk arises when future commercial transactions or recognized financial assets and liabilities are denominated in a currency other than the functional currency[81](index=81&type=chunk) - The company has not entered into any forward foreign exchange contracts to hedge its exposure to foreign exchange risk[81](index=81&type=chunk) [Contingent Liabilities](index=29&type=section&id=Contingent%20Liabilities) The company had no significant contingent liabilities as of June 30, 2025 - As of June 30, 2025, the company had no significant contingent liabilities[82](index=82&type=chunk) [Employees](index=30&type=section&id=Employees) The company employed 2,266 full-time staff in China, with total employee benefit expenses of RMB 221.6 million, focusing on competitive compensation and development - As of June 30, 2025, the company had **2,266 full-time employees**, primarily located in China[83](index=83&type=chunk) Employee Functional Distribution (As of June 30, 2025) | Employee Function | Number of Employees | | :--- | :--- | | Sales, Marketing and Business Development | 1,521 | | Technology and R&D | 312 | | Management | 258 | | Administration | 175 | | **Total** | **2,266** | - Total employee benefit expenses (including share-based payment expenses) amounted to **RMB 221.6 million**, a decrease from RMB 258.9 million in the corresponding period last year[88](index=88&type=chunk) [Use of Net Proceeds from Global Offering](index=31&type=section&id=Use%20of%20Net%20Proceeds%20from%20Global%20Offering) Net proceeds of HKD 341.6 million from the global offering were fully utilized by June 30, 2025, including funds for potential investments - The company raised net proceeds of approximately **HKD 341.6 million** from the global offering, which were fully utilized as of June 30, 2025[89](index=89&type=chunk)[90](index=90&type=chunk) Utilization of Net Proceeds from Global Offering (As of June 30, 2025) | Use | Percentage of Total Net Proceeds | Net Proceeds from Global Offering (HKD million) | Amount Utilized as of June 30, 2025 (HKD million) | | :--- | :--- | :--- | :--- | | Business Expansion | 45.0% | 153.7 | 153.7 | | Optimization of Technology Systems and Operating Platforms | 15.0% | 51.2 | 51.2 | | Enhancement of Services and Businesses | 10.0% | 34.2 | 34.2 | | Potential Investments and Acquisitions or Strategic Collaborations | 20.0% | 68.3 | 68.3 | | Working Capital and Other General Corporate Purposes | 10.0% | 34.2 | 34.2 | | **Total** | **100.0%** | **341.6** | **341.6** | - The remaining net proceeds of approximately **HKD 23.5 million** allocated for potential investments and acquisitions or strategic collaborations were fully utilized by June 30, 2025; the Directors believe the delay in utilization did not have a material adverse impact on the Group's business[90](index=90&type=chunk) [Corporate Governance](index=33&type=section&id=Corporate%20Governance) The company adheres to high corporate governance standards, complying with the Listing Rules' code, with the Chairman and CEO roles combined for strategic efficiency - The company has adopted the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and complied with the code provisions during the reporting period[92](index=92&type=chunk) - The roles of Chairman and Chief Executive Officer are performed by Mr. Yang Wenlong; the Board believes this arrangement facilitates leadership consistency and efficient strategic planning, and independent non-executive directors adequately safeguard the overall interests of the company and its shareholders[93](index=93&type=chunk) [Standard Code for Securities Transactions by Directors](index=33&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Standard Code for directors' securities transactions, with all directors confirming compliance during the reporting period - The company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules, and all Directors confirmed compliance with the required standards of the Standard Code during the reporting period[95](index=95&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=34&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, and no treasury shares were held - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's or its subsidiaries' listed securities[96](index=96&type=chunk) - As of June 30, 2025, the company held no treasury shares[96](index=96&type=chunk) [Changes in Directors' and Chief Executive's Information](index=34&type=section&id=Changes%20in%20Directors%27%20and%20Chief%20Executive%27s%20Information) Changes in directorships and committee memberships occurred, including resignations and new appointments for non-executive directors - Ms. Cai Li resigned as a non-executive director and a member of the remuneration committee, effective May 30, 2025[97](index=97&type=chunk) - Ms. Li Chuheng was appointed as a non-executive director and a member of the remuneration committee and nomination committee, effective May 30, 2025[97](index=97&type=chunk) - Mr. Jiang Shan, an independent non-executive director, was appointed as a member of the nomination committee, effective May 30, 2025[97](index=97&type=chunk) [Interim Dividend](index=34&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[98](index=98&type=chunk) [Events After Reporting Period](index=34&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the reporting period of June 30, 2025 - No significant events occurred after June 30, 2025[99](index=99&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, oversees financial reporting, internal controls, and risk management - The Audit Committee comprises three independent non-executive directors: Mr. Jiang Shan (Chairman), Mr. Zhang Shouchuan, and Dr. Fan Zhenhong[100](index=100&type=chunk) - The primary duties of the Audit Committee include reviewing and overseeing the Group's financial reporting process, internal control and risk management systems, and supervising the audit process[100](index=100&type=chunk) [Review of Accounts](index=35&type=section&id=Review%20of%20Accounts) The Audit Committee reviewed the unaudited condensed consolidated financial statements, which were also reviewed by Deloitte Touche Tohmatsu - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and discussed them with senior management and the auditor[101](index=101&type=chunk) - The condensed consolidated financial statements have been reviewed by Deloitte Touche Tohmatsu in accordance with International Standard on Review Engagements 2410[101](index=101&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=35&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) The interim results announcement and report are published on the HKEX and company websites, with printed copies available upon request - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (www.ddjkjt.com)[102](index=102&type=chunk) - The Group's interim report for the six months ended June 30, 2025, will be published on the aforementioned websites and will be sent to shareholders who have indicated a wish to receive printed corporate communications, at the appropriate time[102](index=102&type=chunk)

Company Overview - Dingdang Health (09886.HK) closed at HKD 0.99 per share, up 23.75% with a trading volume of 33.3 million shares and a turnover of HKD 32.05 million, showing a volatility of 27.5% [1] - Over the past month, Dingdang Health has seen a cumulative increase of 45.45%, and a year-to-date increase of 60%, outperforming the Hang Seng Index by 25.45% [2] Financial Performance - As of December 31, 2024, Dingdang Health reported total revenue of CNY 4.669 billion, a year-on-year decrease of 3.87% - The company recorded a net loss attributable to shareholders of CNY 376 million, a significant decline of 66.73% year-on-year - The gross profit margin stood at 32.95%, with a debt-to-asset ratio of 36.18% [2] Valuation and Industry Comparison - Currently, there are no institutional investment ratings for Dingdang Health - The average price-to-earnings (P/E) ratio for the pharmaceutical and biotechnology industry is -2.05x, with a median of 1.44x - Dingdang Health's P/E ratio is -2.6x, ranking 148th in the industry, compared to peers such as Jingxin Pharmaceutical (00858.HK) at 1.32x and Hengrui Medicine (00013.HK) at 6.01x [3] Industry Positioning - Dingdang Health is recognized as a pioneer in providing rapid digital healthcare services in China, focusing on an online-to-offline model for instant pharmaceutical retail and medical consultation - The company aims to innovate and reshape the healthcare industry in China through technological advancements and business model innovation, continuing to invest in innovation to create value for the pharmaceutical industry and society [3] Upcoming Events - The company is scheduled to disclose its interim report for the fiscal year 2025 on August 22, 2025 [4]

中国经济网北京8月21日讯 叮当健康（09886.HK）港股今日收报0.99港元，涨幅23.75%。 （责任编辑：田云绯） ...

Market Overview - The Hong Kong stock market experienced narrow fluctuations, with the Hang Seng Index closing down 0.24% at 25,104.61 points, the Hang Seng Tech Index down 0.77% at 5,498.5 points, and the National Enterprises Index down 0.43% at 8,974.77 points [1] - Internet healthcare stocks surged, with Dingdang Health rising over 23%, while major tech stocks like Meituan and Baidu saw declines of over 3% and 2% respectively [1] Company News - Baidu Group reported Q2 revenue of 32.7 billion yuan, a year-on-year decrease of 4%, but net profit increased by 33% to 7.322 billion yuan [2] - China State Construction International recorded approximately 56.643 billion yuan in revenue for the first half of the year, a 0.1% year-on-year growth, with net profit increasing by 5.1% to approximately 5.259 billion yuan [2] - Hong Kong and China Gas reported a revenue of 27.514 billion HKD for the first half of the year, a 0.07% year-on-year increase, but net profit decreased by 2.5% to 2.964 billion HKD [2] - Wynn Macau reported a revenue of approximately 13.63 billion HKD for the first half of the year, a decline of 7.5%, with net profit down 85.5% to approximately 231 million HKD [3] - Huazhu Group reported a revenue of approximately 11.8 billion yuan for the first half of the year, a 3.5% year-on-year increase, with net profit rising by 41.3% to approximately 2.4 billion yuan [4] - China Evergrande's listing status will be canceled by the Hong Kong Stock Exchange on August 25 [5] Institutional Insights - CITIC Securities indicated that the semi-annual report earnings period will be a crucial point for the continuation of the Hong Kong stock market, with a shift from liquidity-driven to earnings-driven market dynamics expected [6] - China International Capital Corporation noted that the Hong Kong Stock Connect saw a record net inflow last week, with 6.03 billion USD flowing into the Chinese stock market in July, indicating strong domestic investor sentiment [6] - Zhongtai International highlighted that the Hong Kong stock market is likely to benefit from the accelerated commercialization of AI and continued inflow of southbound funds, with significant growth potential in AI technology and new consumption sectors [7] - CICC pointed out that the recent underperformance of the Hong Kong stock market compared to A-shares is attributed to low AH premium, tightening HKD liquidity, and weakening earnings [7]

Group 1 - The Hong Kong stock market saw a collective surge in internet healthcare stocks, with Dingdang Health rising over 17%, Ping An Good Doctor increasing by more than 12%, ZhongAn Online up nearly 9%, Alibaba Health gaining 3%, and JD Health rising close to 2% [1] - The total market capitalization for Dingdang Health is 1.24 billion, for Ping An Good Doctor is 38.39 billion, for ZhongAn Online is 34.44 billion, for Alibaba Health is 88.68 billion, and for JD Health is 207.69 billion [2] - Year-to-date performance shows significant increases, with Ping An Good Doctor up 186.45%, Dingdang Health up 88.00%, ZhongAn Online up 73.51%, Alibaba Health up 65.66%, and JD Health up 130.96% [2] Group 2 - Chinese Premier Li Qiang emphasized the importance of leveraging artificial intelligence to enhance the development of the biopharmaceutical industry, focusing on improving the intelligence level in drug research and development, clinical trials, diagnostics, treatment, and production logistics [1]