Laobaixing H1 Revenue RMB 10.998 Billion, Net Profit RMB 447 Million, 15,177 Stores, Adopts Restricted Stock

Laobaixing Company (stock code 603883. SH) released its 2026 semi-annual report on August 27, 2026. Financial data show that the company achieved operating revenue of RMB 10.998 billion in the first half of 2026, up 2.07% year on year, and net profit attributable to shareholders of the listed company of RMB 447 million, up 12.3% year on year. By quarter, second-quarter operating revenue grew 3.32% year on year, net profit attributable to shareholders rose 24.25%, and net profit excluding non-recurring items increased 27.76%, indicating a trend of gradual quarterly recovery.

By segment, retail business revenue grew 3.24% year on year in the first half and 5.27% in the second quarter, outpacing overall revenue growth. The company said that single-store operating quality continued to improve during the reporting period, with same-store sales growth improving quarter by quarter. Contributing factors include customer traffic returning to existing quality stores as the industry consolidates, as well as the company's ongoing optimization of store operations, deeper procurement and merchandising reforms, a stronger push toward relationship-based store transformation, and enhanced staff efficiency, all of which increased customer visit frequency.

In store management, the company optimized its network layout during the period, proactively closed inefficient outlets, and expanded in existing markets through a franchising light-asset model, strengthening synergies and continuously adjusting the store mix. As of the end of the reporting period, the company operated 15,177 stores in total, with the share of stores in key priority provinces rising to 90%.

On August 26, the company held its first extraordinary general meeting for 2026, reviewing and approving six proposals, including the 2026 Restricted Stock Incentive Plan (Draft), the 2026 Employee Stock Ownership Plan (Draft), and related administrative measures. The incentive plan combines restricted stock and employee stock ownership, covering more than 340 middle-level managers and core business personnel, with a particular focus on key talent in information technology and digital/AI fields.

According to the performance targets disclosed in the incentive plan, based on 2025 net profit, the company's net profit growth must be no less than 75% in 2027 and no less than 100% in 2028, corresponding to net profit targets of RMB 946 million for 2027 and RMB 1.081 billion for 2028. In addition, as of the end of the first quarter of 2026, the number of pharmacies nationwide had declined from a peak of 706,000 to 673,000.