JD Health International Inc.

For the first half of 2026, JD Health reported total revenue of RMB 40.9 billion. Gross profit was RMB 10.6 billion and gross margin was 26.1%, up 0.9 percentage points year over year. Non-IFRS operating income was RMB 3.5 billion, up 40.3% year over year, and non-IFRS operating margin expanded 1.5 percentage points to 8.5%. Product revenue increased 15.6% year over year to RMB 33.9 billion, and service revenue was RMB 7 billion. Net cash generated from operating activities was RMB 4.46 billion, and cash and cash equivalents, restricted cash, term deposits and wealth management products totaled RMB 71.5 billion as of June 30, an increase of RMB 2 billion from the end of 2025. Looking ahead, management said it expects to maintain better-than-industry growth in the second half and reiterated confidence in a high single-digit operating margin over the long term.

CEO Cao Dong framed the quarter as evidence that JD Health’s moat is widening through supply chain strength, fulfillment coverage, compliance, and user mind share. He said the out-of-hospital pharmaceutical market is still underpenetrated and that JD Health is positioned to benefit over the long run as consumers seek more professional health care services. He was upbeat on AI and health care services as new growth avenues, while saying the company will keep investing with discipline.

CFO Deng Hui highlighted first-half revenue of RMB 40.9 billion, gross profit of RMB 10.6 billion, gross margin of 26.1%, and non-IFRS operating income of RMB 3.5 billion, up 40.3% year over year. She noted non-IFRS fulfillment expense ratio was 10% flat year over year, marketing expense ratio improved to 4.6% from efficiency gains, and R&D expense ratio rose to 2.3% as the company invested in AI. She also said operating cash flow was RMB 4.46 billion, cash and investments totaled RMB 71.5 billion, and the company repurchased and canceled HKD 840 million of shares.

Analysts pressed on the drivers of pharmaceutical product growth, the slowdown in nutrition/supplements, the outlook for medical devices, and the impact of regulation. Management said pharmacy growth reflects years of investment in supply chain, fulfillment, mind share, service capabilities, and compliance, while nutrition/supplements face near-term headwinds from fake overseas brands and tighter regulation, though it believes the changes favor compliant domestic players over time. On profitability and buybacks, management said scale, mix, and service expansion support a long-term high-single-digit operating margin, and confirmed the four-year USD 1 billion repurchase program remains active after buying back and canceling HKD 840 million. On AI, management said Dr. Da Wei’s user base has increased 4x and that AI is moving from a tool for efficiency into a potential standalone business across consumer, doctor, and hospital scenarios.