DINGDANG HEALTH (09886) expects its adjusted net profit for the fiscal year 2025 to be no less than 5 million yuan, turning a year-on-year loss into a profit.

Dingdang Health (09886) announced that it is expected that the net loss for the fiscal year 2025 will significantly narrow by over 80% compared to the net loss of approximately RMB 380 million in the fiscal year 2024. This improvement is mainly attributed to the following factors: firstly, the impairment loss on goodwill of approximately RMB 198.9 million and impairment loss on other intangible assets of approximately RMB 6.8 million in the fiscal year 2024, are expected to significantly decrease in the fiscal year 2025. Secondly, the group continues to optimize its urban layout strategy, focusing on and deepening its presence in core first-tier cities such as Beijing, Shanghai, and Shenzhen, actively expanding and densifying the local smart pharmacy network, effectively promoting operational efficiency and driving overall business growth. Additionally, in terms of products, the group further strengthens its supply chain service capabilities and continuously optimizes its product sales mix, increasing the proportion of high-margin product categories, thereby significantly improving overall operational efficiency and profitability. Considering various favorable factors, the group also expects to achieve an adjusted net profit of not less than approximately RMB 5 million in the fiscal year 2025, compared to an adjusted net loss of approximately RMB 57.2 million in the fiscal year 2024, achieving a turnaround from loss to profit.