Dashenlin 2026 Interim Report: Q2 Revenue Up 6.87%, Net Profit Up 22.89%

Dashenlin released its 2026 interim report. In the second quarter, revenue grew 6.87% year on year, and net profit attributable to shareholders rose 22.89% year on year. In the first half, gross margin improved by 0.74 percentage points year on year to 35.6%, with the retail business gross margin up 0.96 percentage points. The improvement was mainly driven by supply-chain scale integration, procurement cost control, and a higher share of private-label products.

The sales expense ratio declined by 0.63 percentage points year on year, with the decline widening to 1.24 percentage points in the second quarter. Revenue from Western and Chinese patent medicines grew 5.37% year on year, offsetting the temporary pressure on Chinese herbal medicines and non-pharmaceutical categories. In the first half, the company added 968 net new stores, with franchised stores contributing the majority of the increase. Another 307 acquired stores are pending closing.