The mid-year report shows continued double-digit revenue growth, and DPC DASH (01405) demonstrates the resilience of the leading pizza brand.

Over the past year, the food delivery industry has experienced a rare battle for subsidies. In early 2025, JD Delivery made a high-profile entry into the market, prompting platforms like Meituan, Ele.me, and Taobao to respond in succession. This "money-burning war" rapidly increased the penetration rate of food delivery services and generally pressured the average transaction value across the industry, with consumers frequently comparing prices and using coupons. Entering the first half of 2026, as subsidies gradually receded and regulatory scrutiny intensified, the industry as a whole entered a phase of digestion and adjustment. Against this external backdrop, the interim performance of DPC DASH (01405) appeared even more impressive: revenue grew by 20.8% year-on-year to 3.134 billion yuan, maintaining double-digit growth for several consecutive years; net profit increased by 22.9%, with profit growth remaining ahead of revenue growth. The number of stores expanded to 1,550 across 75 cities, and the membership pool surpassed 41.9 million, with same-store transaction growth (SSTG) remaining positive for 22 consecutive quarters. Despite short-term fluctuations in certain metrics due to the subsidy battle, the core picture revealed by the financial report is still clear the companys internal growth momentum is strong, and its brand moat continues to expand. Short-term price fluctuations do not change the fundamentally positive long-term outlook. Strong Profitability Performance with Significant Cost Optimization Results In the first half of 2026, DPC DASH achieved steady growth in both revenue and profit. During this period, the company reported revenue of 3.134 billion yuan, marking a year-on-year increase of 20.8%, which not only continued the trend of double-digit growth for several consecutive years but also achieved a historical breakthrough of over 3 billion yuan in a half-year period for the first time. Profit performance was equally notable. During the reporting period, the company reported a net profit of 81.05 million yuan, a substantial increase of 22.9% year-on-year, with profit growth outpacing revenue growth, indicating a steady improvement in profitability. Adjusted net profit also reached 98.15 million yuan, a year-on-year increase of 7.4%; adjusted EBITDA was recorded at 351 million yuan, up 8.6% compared to the same period last year. At the store level, EBITDA reached 544 million yuan during the period, a year-on-year increase of 8.3%, indicating stable operation of the single-store profitability model that continuously contributes stable cash flow. With ongoing scale effects, overall cost control at the group level has also shown results, as total expenses as a percentage of revenue decreased from 8.1% to 7.5%. On one hand, the company has lowered ingredient and packaging costs via large-scale procurement; on the other hand, it has flexibly optimized labor structure at the store level, suggesting future cost efficiency could be further enhanced. Rapid Expansion of Store Network and Solidification of Long-term Supply Chain Foundations During the reporting period, DPC DASH adhered to an opening strategy of deepening existing markets and broadening new markets, significantly increasing store density and urban coverage. As of June 30, 2026, DPC DASH successfully entered 75 cities in mainland China, with a total of 1,550 stores. By August 14, the goal for new store openings for the year was already secured at 96%, reflecting strong execution efficiency and market expansion capability. In the first half of 2026, despite the impact of the subsidy battle among delivery platforms causing a decline in average transaction price (ATP) that resulted in a same-store sales growth (SSSG) of -4.8%, overall transaction volume increased significantly by 33.7% year-on-year, with same-store transaction growth (SSTG) reaching 7.1%, remaining positive for 22 consecutive quarters. This fully indicates that consumer demand for the brand has not weakened due to external price disturbances, but rather shows a high level of customer loyalty and repurchase intention. The performance in new markets remained excellent, with a total of 27 new cities entered by the end of 2025 and in the first half of 2026. As of June 30, 2026, 93 new stores had been opened in these 27 cities, with the average daily sales (ADS) of these stores reaching 28,230 yuan in the first half of 2026. The expected weighted investment recovery period is only 14.8 months, demonstrating outstanding investment return efficiency. Additionally, the opening day sales of the first stores in Dalian and Harbin set a new record for single-day sales in the Domino's global system, reflecting the brands awareness and appeal. It is worth noting that some markets experienced a decline in ADS in the first half of the year, primarily due to two reasons: In core cities, the company actively pursued a deepening strategy, densifying store placements, which temporarily diluted the sales of existing stores but will help increase market share and solidify regional competitive barriers in the long term; in new markets, new stores returned from initial "explosive sales" peaks to normal volumes, causing a year-on-year decline in ADS due to base effect. However, as of the latest disclosure date, the SSTG of Shenzhen New Land Tool Planning & Architectural Design has successfully turned positive, indicating that sales have entered a natural growth trajectory, with long-term growth prospects remaining promising. In terms of supply chain development, following the establishment of the supply chain centers (SCC) in Shanghai, Beijing, and Dongguan, the fourth SCC officially began operations in Wuhan in August 2026, supporting over 200 stores and significantly enhancing regional transportation capacity and cost control. Meanwhile, the sites for SCCs in Chengdu and Nanjing have also been finalized, with production expected to commence in the second half of 2027, laying a solid foundation for the next phase of nationwide expansion. Additionally, regarding external cooperation, in July 2026, DPC DASH signed a strategic partnership agreement with the Inli Group, leveraging their operational capability to enhance store density and penetration while broadening into emerging markets, further expanding the regional footprint. The Member Ecosystem Remains Strong, Multi-pronged Approaches to Promote Transaction Value Recovery Despite the challenging external operating environment in the first half of the year, DPC DASH maintained strategic resolve, continuously working on multiple dimensions such as products, marketing, and channels to steadily promote the recovery of transaction value while reinforcing its brand positioning as "delicious and high-value." In terms of products, the company launched the "Crispy Croissant Roll" inspired by classic Western pastries, innovatively blending traditional baking techniques with pizza forms, resulting in a unique crisp taste that merges flawlessly with the pizza rolled edge, delivering distinct layers and rich buttery aroma, thereby expanding consumer perceptions of pizza flavor offerings. During the same period, the company introduced several distinctly flavored new pizzas, such as the American Hand-Torn BBQ Pork Pizza, which uses pork collar marinated and cooked slowly, combined with hand-torn techniques that recreate the robust meat texture, rich in flavor; the Mexican-themed Salsa Grilled Chicken Beef Pizza is made with carefully crafted salsa from high-quality tomatoes, providing a sweet and sour, refreshing taste with rich layers, paired with aromatic chicken thigh and hearty beef cubes, offering consumers a unique South American flavor experience. On the marketing front, the company collaborated with the anime game "Arknights" to launch the co-branded Speedy Delivery single meal and Delicious Exploration double meal, deeply engaging with young consumers and core gamer communities; it also partnered with the popular IP "Zan Meng Lu Bi" for theme promotions, launching limited sets and blind box merchandise, leveraging IP popularity to enhance brand relevance and social media reach, effectively increasing brand influence among younger demographics. The company also continually optimized product mix and pricing strategies, introducing several value packages, including a 79 yuan six-item star value package suitable for gatherings, and a 45 yuan four-item star value single meal, balancing convenience with cost-effectiveness to meet diverse consumer needs. During the World Cup events, timely launches of square pizzas and "Winning on Our Side" festive packages provided a complete range of products including pizzas, snacks, desserts, and beverages, also introducing interactive mini-games in their WeChat app, funnily guiding users back to the proprietary channels such as the mini-program and APP, supporting the recovery of transaction values. From a channel performance perspective, the transaction values on the self-operated APP and mini-program have remained stable at above 90 yuan, indicating that the brand still possesses strong price resilience and user loyalty. The current phase of declining transaction values is mainly affected by the diversion of subsidies in the food delivery platform war, and it is expected that as subsidy policies become more rational, transaction values will gradually return to normal. Significant Increase in Food Delivery Penetration in New Markets. Due to the initial surge in customer traffic at Shenzhen New Land Tool Planning & Architectural Design's opening, the store temporarily limited services to in-store dining and self-pickup; however, as operations stabilized, the food delivery penetration rate significantly increased to 25% in the first half of 2026. Overall food delivery sales surged 44.7% year-on-year, with its revenue proportion rising from 43.1% to 51.7%, an increase of 8.6 percentage points. The excellent performance of the membership ecosystem also indirectly validates the stability of the company's user base. By the end of the reporting period, the cumulative number of members reached 41.9 million, a year-on-year increase of 39.2%; approximately 18.1 million first-time users were acquired in the past 12 months, continuously expanding the user pool and solidifying the foundation for long-term growth. Regarding delivery services, the company adhered to the "30-minute delivery guarantee," achieving a timely delivery rate (DOT) of 93.6% in the first half of the year, maintaining high service quality. Summary Looking back at the first half of 2026, DPC DASH maintained a clear strategic resolve amid industry volatility, continuously channeling resources into foundational elements such as store network expansion, supply chain development, product innovation, and cost management, balancing profitability quality with scale expansion effectively. These continuously accumulating scale advantages, user assets, and supply chain capabilities during the industry adjustment period will growth resilience when the industry resumes an upward trajectory, driving sustained performance and valuation enhancement.