EEKA Fashion Holdings (3709) investor relations material

Executive summary

• Revenue for H1 2026 was RMB2,727.14 million, down 12.14% year-over-year, mainly due to lower sales in self-operated retail stores.

• Net profit increased 1.27% to RMB292.67 million, with net margin rising to 10.73%.

• Gross margin remained stable at 76.38%.

• The group continued to optimize its multi-brand portfolio, enhance digital transformation, and focus on quality-oriented growth.

• No interim dividend was declared for H1 2026.

Financial highlights

• Revenue declined by RMB376.88 million year-over-year, mainly due to a 17.04% drop in self-operated retail store sales.

• E-commerce revenue was stable at RMB592.52 million, with significant growth in Douyin (+53.13%) and WeChat Video Channel (+53.63%).

• Operating expenses decreased by 12.89% to RMB1,795.74 million, and selling/distribution expenses fell 13.97%.

• Net cash inflow from operating activities was RMB757.78 million, down 15.41% year-over-year.

• Basic earnings per share remained at RMB0.43.

Outlook and guidance

• Management remains cautiously optimistic for H2 2026, expecting gradual recovery in premium women's apparel with policy support and continued focus on brand, product, channel, and digital intelligence upgrades.

• Plans include omnichannel integration, digital supply chain, AI-enabled business scenarios, and further store optimization.

• Full-year GDP growth in China is projected at 4.8%, with gradual improvement in the consumer market.