DINGDANG HEALTH (09886) has announced an expectation that its net loss for the 2025 fiscal year will narrow significantly by more than 80% compared to the net loss of approximately RMB 3.8 billion recorded in the 2024 fiscal year. This improvement is primarily attributed to several key factors. Firstly, the 2024 fiscal year included an impairment loss on goodwill of about RMB 1.989 billion and an impairment loss on other intangible assets of approximately RMB 6.8 million; these impairment amounts are expected to be substantially lower in the 2025 fiscal year. Secondly, the Group has been continuously optimizing its urban layout strategy, concentrating on and deepening its presence in core first-tier cities such as Beijing, Shanghai, and Shenzhen. It is actively expanding and densifying its local smart pharmacy network, which effectively enhances operational efficiency and drives steady growth across the overall business. Furthermore, regarding product offerings, the Group has further strengthened its supply chain service capabilities and consistently optimized its product sales mix, increasing the proportion of high-margin categories. This has led to a notable improvement in overall operational efficiency and profitability. Considering these favorable factors collectively, the Group also expects to achieve an adjusted net profit of no less than approximately RMB 5 million in the 2025 fiscal year. This represents a pivotal turnaround from the adjusted net loss of about RMB 57.2 million in the 2024 fiscal year.
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