Yonghe Medical's interim net profit rose 170.9%, revenue from services for women grew 40%, medical hair care remained steady, and digital tools improved operating efficiency.
On August 20, Yonghe Medical released its interim financial report for the first half of fiscal year 2026, posting revenue of RMB 981 million, up 13.8% year-over-year; gross profit of RMB 677 million, up 23.0%; gross margin rising from 63.9% in the prior period to 69.0% in the current period; net profit of RMB 75.5 million, up 170.9% year-over-year; and earnings before interest, taxes, depreciation, and amortization (EBITDA) of RMB 219.5 million, up 29.2% year-over-year, reflecting further improvements in profitability.
Yonghe Medical's full-year net profit for 2025 was RMB 73.6 million. According to the company's interim results report for 2026, net profit for the first half of 2026 has already surpassed the full-year net profit for 2025.
Since 2025, Yonghe Medical's profitability has continued to improve, driven by the company's ongoing efforts to optimize its business model, enhance operational efficiency, and implement refined management practices.
In the hair transplantation segment, Yonghe Medical has expanded its services into the aesthetics field, launching the "Four Facial Thirds and Five-Eye Facial Aesthetics System," which has attracted a significant number of female consumers seeking aesthetic improvement. According to the financial report, the company has integrated aesthetic design elements into its "Good Doctor" system. This strategy has not only enhanced customer satisfaction but also further solidified its leading position in the hair health management sector. During the reporting period, women accounted for approximately 34.4% of hair transplant patients.
As the company's second growth curve, the medical hair restoration and maintenance business posted steady growth. During the reporting period, revenue from this segment reached RMB 227 million, up 20.7% year-over-year. The number of patients receiving medical hair restoration and maintenance services was 56,757, an increase of 26.4% compared with the same period last year. The repurchase rate for medical hair restoration and maintenance packages stood at 25.9%.
Revenue from Services for Women Surges 40%; Medical-Grade Hair Restoration and Maintenance May Be a Future Highlight
As a new growth driver for its hair transplant business, Yonghe Medical has invested heavily in services for women and reaped substantial rewards.
On March 17, 2026, Yonghe Medical held the industry's first special event focused on the female hair aesthetics niche in Beijing, the "HER 2026 China Hairline Aesthetics Exhibition and Yonghe Female Brand Strategy Upgrade Launch." During the event, the company jointly released the "2026 Hair Aesthetics Trend Report" with Xiaohongshu (Little Red Book), and debuted the "Guidelines for Female Aesthetic Hair Transplant Procedures," which the company said addressed a gap in domestic standards for female aesthetic hair transplantation and helped shift China's hair-care medical sector from "functional treatment" toward "aesthetic customization."
In addition to making its female hair transplant business more aesthetic, standardized, and customized, Yonghe Medical has continued to strengthen its female business operating system by advancing the development of female specialty service systems in key regions nationwide, deploying dedicated service teams, improving training systems, standardizing reception procedures, and creating dedicated service spaces, all of which have further enhanced the service experience for female consumers throughout the diagnosis, design, and treatment process.
As of the end of the reporting period, revenue from services for women increased approximately 40% year-over-year, and the number of female hair transplant procedures exceeded 14,000.
Behind the growth of the female business is an improvement in Yonghe Medical's service capabilities. During the reporting period, the company conducted more than ten specialized training sessions focused on core areas such as hair expertise, diagnostic and treatment skills, service communication capabilities, and customer service management, covering approximately 500 participants. Combined with assessment and evaluation mechanisms, these efforts have continuously raised the professionalism and service capabilities of its medical team. As of June 30, 2026, the company had built a professional medical team of 1,410 members, including 241 physicians, compared with 226 physicians in the same period of 2025.
To meet the continued growth in demand for female hair medical services, Yonghe Medical has been steadily strengthening its talent pipeline and service capabilities in this area. On one hand, it has improved its tiered, graded, and targeted training mechanisms to strengthen the recruitment and development of talent in core positions and enhance professional service capabilities for the female business. On the other hand, it has continued to optimize its differentiated service system by accumulating high-quality clinical cases, enhancing physicians' professional skills, refining hair transplant techniques, and improving the consumer service experience, further strengthening brand influence and market competitiveness.
Against the backdrop of continuously improving medical capabilities, the hair restoration and maintenance business, long regarded as Yonghe Medical's "second growth curve," has also posted steady growth. Unlike ordinary lifestyle-level beauty and maintenance services, Yonghe Medical positions its hair restoration and maintenance business as "medical-grade," meaning that hair health management is carried out using medical-grade methods under the guidance and participation of physicians. According to the financial report, medical hair restoration and maintenance services have gradually become an important business segment connecting the group's diagnosis, treatment, maintenance, and long-term management of members' hair health. Revenue from this segment reached RMB 227 million, up 20.7% year-over-year, with 56,757 patients receiving these services, an increase of 26.4% from the same period last year, and a repurchase rate of 25.9% for medical hair restoration and maintenance packages.
In a previous media interview, a senior executive of Yonghe Medical stated that medical hair restoration and maintenance represents a genuinely incremental market. In 2026, the company has launched pilot "Yonghe Hair Health" small-format clinics in Shenzhen that focus exclusively on non-surgical, medical-grade hair restoration and maintenance needs.
Strengthening Digital and Intelligent Infrastructure to Improve Full-Chain Efficiency and Shift the Underlying Growth Logic
Building on its digital and intelligent infrastructure, Yonghe Medical has also moved into the digital intelligence era across marketing, management, and other functions. Its underlying growth logic has shifted from "scale-driven growth" to "efficiency- and refinement-driven growth."
During the reporting period, the company focused on the application of artificial intelligence (AI) technologies as its core, strengthening foundational digital capabilities and promoting the large-scale application of AI across business scenarios including medical services, digital marketing, and operations management.
On the marketing front, the company launched innovative tools such as "AI Hair Loss Self-Assessment" and "AI Aesthetics Self-Assessment" during the period, and integrated these AI tools into brand promotional activities, including co-branded campaigns such as the co-presentation of "Our Dormitory" with Mango TV, enhancing brand awareness and influence among younger consumer groups. Through AI analysis of user behavior and traffic patterns, the company has achieved precise identification of target customers and matching of demand. As of the end of the reporting period, these tools had attracted more than 100,000 consumer participants in total, effectively improving the efficiency of reaching potential customers. In addition, the company has continued to refine its AI user profiling system by integrating online consultation and outpatient service data. It has also advanced the application of AI marketing tools, optimized customer follow-up and customer engagement through owned channels, and reduced repetitive manual work through automation, thereby improving sales team efficiency.
On the medical front, the company has leveraged intelligent diagnostics, assisted treatment, and medical data applications to raise the standardization of medical services and improve physician efficiency. It introduced AI image recognition technology to assist physicians in scalp and hair condition analysis, achieving coverage across all hospitals and clinics nationwide. During the reporting period, monthly generation of AI-assisted assessment reports exceeded 50,000, providing data support for physician diagnoses and consumer treatment planning. In addition, the company has adopted AI medical models to advance the intelligent use of outpatient medical records, improving the efficiency of diagnosis and treatment processes and the consistency of medical services. It has also refined its AI intelligent diagnosis and treatment system, extending AI coverage to pre-consultation treatment design, intraoperative surgical quality management, and postoperative intelligent follow-up, further optimizing the patient experience.
The company has also independently developed image capture equipment that is being gradually deployed across medical service scenarios to provide data support for preoperative assessment, postoperative outcome tracking, and recovery cycle management, addressing inconsistencies in traditional manual capture processes and further improving standardization in diagnostics. Meanwhile, a 3D intelligent capture and synthesis device has completed pre-research and is planned to be gradually rolled out to hospitals and clinics to further enhance hair transplant design and diagnosis and treatment capabilities.
On the management front, the company has advanced the development of an AI service supervision system, achieving AI quality inspection coverage of in-clinic consultation processes and using intelligent analysis to identify areas for optimization within service workflows.
With improved digital and intelligent capabilities, digital intelligence has now been integrated into all aspects of Yonghe Medical's marketing, management, and medical operations. Its growth logic has shifted from scale-driven growth to efficiency- and refinement-driven growth.
According to the "2024 China Hair Health Services Industry Research Report" jointly released by Frost & Sullivan and LeadLeo Research Institute, China's hair health market has continued to grow in recent years and is expected to reach RMB 116.54 billion by 2028. The market is still expanding, but how market players find the most suitable way to survive remains an ever-evolving question facing operators. Yonghe Medical appears to have identified a growth strategy, but the battle for survival continues.
