Huamei Dental 2026H1: Revenue of RMB 50.23 million, up 4.35% YoY, Net Profit Attributable to Shareholders of the Parent Company down 16.41% YoY.

Source: Huamei Dental 2026 Semi-Annual Report

Net Profit Attributable to Shareholders of the Parent Company decreased by 16.41% year-on-year / Gross Margin 42.54% / Operating Revenue 50.2305 million yuan, up 4.35% year-on-year

DentalGoodNews｜Huamei Dental (833269.NQ) released its 2026 semi-annual report on August 24, 2026. During the reporting period, the company achieved operating revenue of 50.2305 million yuan, up 4.35% year-on-year; net profit attributable to shareholders of the listed company was 3.9370 million yuan, down 16.41% year-on-year; net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 3.5585 million yuan, up 43.73% year-on-year.

Source: Huamei Dental 2026 Semi-Annual Report

In terms of profitability, the company's gross margin for the first half of the year was 42.54%, an increase of 2.78 percentage points from 39.76% in the same period last year. The improvement in gross margin was mainly attributed to the company's strict cost control and expenditure budget management. Selling expenses for the period were 2.8422 million yuan, down 25.63% year-on-year, mainly due to the company's implementation of budget control and management of non-essential marketing expenses.

In terms of cash flow and financial position, the company's net cash flow from operating activities was 11.7758 million yuan, up 2.12% year-on-year. Net cash outflow from investing activities increased by 863,600 yuan year-on-year, mainly due to the concentrated payment of litigation attorney fees of 2.1887 million yuan in the first half of the year. As of the end of the reporting period, the company's total assets were 118 million yuan, total liabilities were 64.8293 million yuan, and the asset-liability ratio was 55.09%.

Source: Huamei Dental 2026 Semi-Annual Report

Regarding the adjustment of clinic network, the subsidiary Chengdu Chenghua Xinghuamei Dental Clinic Co., Ltd. closed its doors during the reporting period. As a result, the company transferred the book value of 1.0110 million yuan in right-of-use assets and lease liabilities to current-period profit or loss, leading to an 18.19% decrease in right-of-use assets compared to the end of last year. Meanwhile, the company continued to integrate resources and acquired 51% equity of Chengdu High-tech Yiya Oral Clinic Co., Ltd. for 360,000 yuan on May 1, 2026, generating goodwill of 268,300 yuan.

In terms of major litigation progress, Huamei Dental, as the plaintiff, is involved in a trademark infringement dispute with an amount in controversy of 10.10 million yuan. The company received the summons on March 18, 2026, and the first court hearing was held on April 15. Both parties have completed evidence exchange, and the case has not yet been concluded. Previously, due to the recovery of litigation compensation payments, the company's non-operating income base in the same period last year was relatively large, and non-operating income for this period decreased by 72.11% year-on-year.

In addition, according to the semi-annual report disclosure, the company currently operates under the DSO (Dental Service Organizations) model, with profitability primarily derived from oral medical services at clinics, while also generating platform-level revenue through supply chain VBP (volume-based procurement), brand licensing, and other means.