Ridge Outdoor International (2720) investor relations material

Executive summary

• H1 2026 revenue fell 9.8% YoY to RMB301.132m and profit for the period fell 43.0% to RMB23.005m amid cautious ordering, geopolitical disruption and weaker consumer confidence, especially in Europe.

• Gross margin held at 26.6%; OBM revenue grew 59.0% to RMB34.9m, contributing 11.6% of revenue, while OEM/ODM focused on new products, client development and order recovery.

Financial highlights

• Revenue was RMB301.132m vs RMB333.838m; gross profit RMB80.151m vs RMB89.090m; operating profit RMB32.173m vs RMB55.576m.

• Profit before tax was RMB29.774m vs RMB53.523m; profit for the period RMB23.005m vs RMB40.335m; basic and diluted EPS RMB0.19 vs RMB0.40.

• Other net loss was RMB5.843m vs income of RMB3.845m, primarily reflecting foreign-exchange losses; income tax expense was RMB6.769m vs RMB13.188m.

• Selling and distribution expenses rose 17.8% to RMB12.0m; administrative expenses rose 11.5% to RMB27.0m, reflecting marketing, post-listing advisory and management costs.

• Operating cash flow was RMB51.377m vs RMB40.792m; cash and cash equivalents were RMB380.583m at June 30, 2026, vs RMB55.707m at December 31, 2025, mainly reflecting IPO proceeds.

Outlook and guidance

• New-product R&D, capacity planning, OEM/ODM customer development and order recovery are expected to support H2 2026 sales and growth into 2027; no quantified guidance was stated.

• Priorities include product innovation, deeper global client engagement, brand expansion, full-category deployment and resilient, digitally integrated supply chains.

• Plans include South American expansion, stronger global-brand partnerships, development of a multi-brand matrix and diversified manufacturing footprints; management expects market vitality to improve as conditions stabilize.