China’s Oral Industry 2026H1: Revenue of RMB 74.247 Million, Dental Clinic Business Revenue Down 7.37% Year-on-Year

Source: China Oral Industry Group Interim Results Announcement

Revenue decreased by 32.05% year-on-year / Net profit turned to a loss of RMB 10.986 million / Gross margin of inflatable products turned negative to -2.5%

DentalGoodNews｜On August 25, 2026, China Oral Industry Group Holdings Limited (8406.HK, hereinafter referred to as "China Oral Industry") released its interim results announcement for the six months ended June 30, 2026. During the reporting period, the Group recorded revenue of RMB 74.247 million, representing a year-on-year decrease of 32.05% from RMB 109 million in the corresponding period last year; the loss for the period was approximately RMB 10.986 million, turning from a profit of RMB 4.069 million in the corresponding period last year. Management discussion and analysis noted that factors such as the negative gross margin of the inflatable products business and increased expected credit losses on trade receivables impacted performance [①P25-26].

Source: China Oral Industry Group Interim Results Announcement

China Oral Industry is a diversified business holding company, and its oral business is primarily reflected through dental clinic services and product sales. During the reporting period, the dental clinic business recorded revenue of RMB 6.671 million, a year-on-year decrease of 7.37%; the segment recorded a loss of RMB 1.365 million, turning from a profit of RMB 1.499 million in the corresponding period last year. According to previous reports by DGN, the Group achieved a turnaround from loss to profit in the dental clinic business segment at the full-year level in 2025.

Source: China Oral Industry Group Interim Results Announcement

Compared with the general decline in the global market, the Chinese mainland market showed a growth trend. During the reporting period, revenue from customers in the Chinese mainland amounted to RMB 47.067 million, representing a year-on-year increase of 49.60%, with the revenue share rising from 28.8% to 63.4%. In addition, the upstream yarn and polyester business recorded revenue of RMB 31.057 million, a year-on-year increase of 46.57%, making it the only business segment within the Group to maintain positive growth.

Furthermore, the Group disclosed that on July 27, 2026, it entered into separate subscription agreements with seven subscribers, proposing to allot and issue a total of 328.2 million new shares at a subscription price of HK$0.056 per share, with net proceeds of approximately HK$18.29 million; this event occurred after the reporting period and has not yet been reflected in the current period's financial data.

From a financial position perspective, as of June 30, 2026, the Group's total assets amounted to RMB 164 million, a decrease of 1.05% from RMB 166 million as of the end of 2025; total liabilities amounted to RMB 64.105 million, a decrease of 7.80% from RMB 69.527 million as of the end of 2025; total equity attributable to owners of the Company amounted to RMB 100 million, an increase of 3.80% from RMB 96.708 million as of the end of 2025.

The Group's cash and bank balances amounted to RMB 16.549 million, a decrease of 58.56% from RMB 39.936 million as of the end of 2025; the current ratio was approximately 2.88 (end of 2025: 2.78), and the quick ratio was approximately 1.71 (end of 2025: 1.83); affected by increased bank borrowings, the debt ratio (total borrowings divided by total equity) rose from approximately 0.03% at the end of 2025 to approximately 10.2%.