Butong (6090) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 rose 11.7% year-over-year to RMB810.5 million, driven by strong growth in feeding gear and baby care products.

• Net profit surged 98.3% year-over-year to RMB96.2 million; adjusted net profit (non-HKFRS) was RMB103.2 million, up 32.2%.

• Gross profit increased 13.4% to RMB406.4 million, with gross margin improving to 50.1% from 49.4% a year earlier.

• R&D expenses rose 137.7% to RMB25.5 million, reflecting investment in AI-driven product innovation.

• The company continues to expand both online and offline sales channels, with online sales accounting for 72.1% of total revenue.

Financial highlights

• Revenue: RMB810.5 million (+11.7% YoY); gross profit: RMB406.4 million (+13.4% YoY); gross margin: 50.1% (up from 49.4%).

• Net profit: RMB96.2 million (+98.3% YoY); adjusted net profit: RMB103.2 million (+32.2% YoY).

• EBITDA (non-HKFRS): RMB136.2 million (+22.6% YoY); adjusted EBITDA: RMB143.2 million (+11.9% YoY).

• R&D expenses: RMB25.5 million (+137.7% YoY), representing 3.1% of revenue.

• Finance costs dropped 98.1% to RMB265,000 due to conversion of preferred shares.

Outlook and guidance

• Plans to accelerate AI upgrades for core products and launch new AI-driven categories in H2 2026.

• New Ningbo factory to become a digitalized, intelligent demonstration plant, supporting multi-category expansion and global supply chain integration.

• Strategic focus on global brand expansion and localized operations in key overseas markets.