Goseido (02273) has impressive 2026 interim results! The proposed mid-term dividend of 210 million yuan will be realized in both shareholder returns and global layout
The Zhitong Finance App learned that on August 28, Gushengtang (02273) announced the 2026 interim results. During the reporting period, the company achieved operating income of 1.65 billion yuan, up 10.6% year on year; net profit reached 220 million yuan, a sharp increase of 44.2% year on year; and plans to distribute 210 million yuan in mid-2026. Relying on the two-wheel drive of endogenous growth and epitaxial expansion, the company's profit quality, shareholder return capacity, and industry competitiveness have all achieved all-round growth.
Guseido held 2026 interim results conference
At the results conference, Tu Zhiliang, chairman of Gushengtang, focused on explaining the structural changes in the traditional Chinese medicine diagnosis and treatment market: as the country restricts the disorderly expansion of the top three hospitals and pushes high-quality medical resources to sink down to the grassroots level, demand and supply of traditional Chinese medicine diagnosis and treatment are trending towards the grassroots level. The “Fifteenth Five-Year Plan” for the Revitalization and Development of Traditional Chinese Medicine clearly states that the total number of people diagnosed and treated with traditional Chinese medicine will increase from 20.2% in 2025 to 23% in 2030, and that the proportion of primary Chinese medicine practitioners will increase from 26.07% to 27%, and that the policy side will continue to open up room for growth in the industry.
Chairman Tu Zhiliang said that the overall paradigm of Gushengtang is shifting from “misalignment of the top three hospitals” to “relay collaboration between grass-roots community health service centers.” Compared to grass-roots community hospitals, Gushengtang has built three levels of differentiation: the first is to establish a network of top experts composed of Chinese medicine masters, famous national traditional Chinese medicine practitioners, and Qi Huang scholars. Second, it has solved the problem of doctor promotion in primary medical institutions due to financial restrictions in districts and counties. Since 2026, 50 doctors from Gushengtang have been successfully promoted to their titles. Third, 152 famous medical heritage studios have been set up. Young doctors can follow Chinese medicine masters and teachers to create soft power that is difficult for primary medical institutions to replicate. In the first half of 2026, the contribution performance of new Gushengtang doctors increased by 50% year-on-year, and the “talent siphon effect” brought about by the influx of full-time doctors was remarkable.
High dividends+strong buybacks, unprecedented shareholder returns
The company continues to give back to investors through strong dividends and share repurchases. A dividend of 210 million yuan is planned for the middle of 2026; the cumulative dividend for the end of 2025 and the middle of 2026 will be worth 350 million yuan, with a dividend rate of 6.8%, leading the Hong Kong medical industry. At the same time, the company continues to increase shareholders' rights through share repurchases. In the first half of 2026, it has used HK$360 million to repurchase 51 times, with a total of 13.192 million shares, showing that the company's management attaches great importance to shareholder returns and is firm optimistic about the company's value.
At the financial level, the company's overall operating quality continues to improve, with abundant cash flow and outstanding resilience to risks. In the first half of 2026, the company's cash reserves reached 1.19 billion yuan. Ample capital reserves provided solid financial support for subsequent domestic and overseas mergers and acquisitions expansion, product R&D innovation, and market channel expansion.
Expansion is accelerated, and the domestic and overseas business layout continues to expand
The company adheres to the “deep domestic+overseas expansion” two-wheel drive strategy, and the domestic and overseas business layout continues to expand. In the first half of 2026, the company added 18 new stores and successfully entered the Jinan market. The total number of stores worldwide increased to 119, and the service network covered 22 cities in China and Singapore.
The company's endogenous growth is steady, becoming the core support for revenue growth. In the first half of the year, the company's offline store revenue was 1.54 billion yuan, up 12.5% year on year; the number of offline outpatients reached 2.97 million, up 17.5% year on year. Among them, the number of outpatients at the same store increased by 12.9%. Mature stores showed strong operational resilience, and endogenous growth capacity continued to be consolidated.
The international layout has ushered in many breakthroughs, and the overseas travel model has been effectively verified. In the first half of 2026, the Singapore market revenue increased 1409.8% year on year. 26 stores achieved full island coverage, and the store profit model worked, confirming the replicability and scalability of the company's overseas business model.
In August of this year, Gushengtang's international layout accelerated again, successively entering the two major markets of Hong Kong, China, and Malaysia. On August 12, 4 clinics in Hong Kong opened simultaneously and landed in the core business districts of Shau Kei Wan, Prince Edward, Tuen Mun and Wan Chai; on August 27, the company acquired 100% of Malaysia's Yongsheng Traditional Chinese Medicine Group, which included 10 of its stores. Following Singapore, Gushengtang successfully opened up a second overseas market, superimposing Hong Kong, China as an international gateway, and the company's internationalization strategy moved from a “single-point breakthrough” to a new stage of large-scale development.
Famous doctors gathered, and physicians' reserves and product power jumped in both directions
The team of physicians continues to expand and build a solid competitive barrier. In the first half of 2026, the total number of doctors cooperated with the company reached 44,400, an increase of 2,657 over the previous year. Among them, the number of offline doctors added 1,296 over the same period last year. The team of physicians continued to grow and the talent structure continued to be optimized.
As of the first half of this year, the number of doctors owned by the company reached 1,208, an increase of 42.6% over the previous year, and the growth rate was impressive; of the new offline doctors added in the first half of the year, 40.3% were self-owned doctors, and the team of full-time doctors expanded rapidly.
Product-side competitiveness has been upgraded simultaneously, and a self-pricing product matrix has been formed, and the market potential is strong. In the first half of the year, the company successfully registered a total of 20 in-hospital formulations. Among them, sales of many formulations grew rapidly. Sales of spleen strengthening lipid cream increased by 202.2% year on year, sales of pregnancy cream increased 169.9% year on year, and market recognition continued to increase. At the same time, 4 formulations have been certified by the Health Sciences Authority of Singapore (HSA), injecting new impetus into the internationalization of traditional Chinese medicine.
User trust, steady increase in member stickiness and spending power
The user operation system continues to improve, and member stickiness continues to rise. In the first half of 2026, the company's total number of outpatients reached 3.162 million, an increase of 15.1% over the previous year. The operating results of the membership system were particularly remarkable. The share of current member revenue increased to 46.8%, and the number of member consumers was 1.381 million, an increase of 27.9% over the previous year.
User growth is growing at the same time as retention capacity. The company added 168,000 new members in the first half of the year, a sharp increase of 53.5% over the previous year, and the member return rate rose to 87%, reflecting consumers' high recognition of the Gushengtang brand. Third-party platforms such as Meituan have achieved remarkable results. Meituan's initial uptake rate reached 69%, and the high conversion rate continues to drive steady growth in customer unit prices and overall revenue.
Empowered by AI, physicians' growth and two-way upgrading of patient services
Gushengtang actively embraces AI technology, and collaborated with research teams from top universities such as Tsinghua University, Beijing University of Traditional Chinese Medicine, and the Chinese Academy of Traditional Chinese Medical Sciences to build an AI model of traditional Chinese medicine, and joined hands with 19 experts to create a “Chinese medicine AI split”, covering 10 major specialties, with an AI prescription payment rate of nearly 90%.
Relying on AI technology and digital platforms, the company has built a complete closed loop of “Famous Doctor Experience Accumulation - Young Physicians' Empowerment - Full Cycle Patient Service”. The company's AI refined label covered about 5 million users and launched specialized chronic disease management services. AI-related revenue exceeded 90 million yuan in the first half of the year.