Carote (2549) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 rose 32.8% year-over-year to RMB1,111.3 million, with profit up 31.5% to RMB135.2 million, driven by branded business growth and channel optimization.

• Branded business accounted for 96.5% of total revenue, with significant growth in the US and China, while Western Europe and Southeast Asia saw revenue declines due to strategic resource reallocation.

• Gross profit margin improved to 37.2% (from 33.7% in H1 2025), reflecting product mix optimization and procurement efficiency.

• Net profit margin slightly decreased to 12.2% due to higher income tax and net foreign exchange losses.

• The company continued its transition to an omnichannel sales model, expanding both online and offline presence, especially in the US and China.

Financial highlights

• Revenue: RMB1,111.3 million (up 32.8% YoY); profit: RMB135.2 million (up 31.5% YoY).

• Gross profit: RMB413.3 million (up 46.8% YoY); gross profit margin: 37.2%.

• Selling expenses: RMB194.9 million (up 28.1% YoY); administrative expenses: RMB22.6 million (up 16.8% YoY); R&D expenses: RMB11.6 million (down 35.3% YoY).

• Net cash from operating activities: RMB133.7 million (vs. net cash used of RMB18.7 million in H1 2025).

• No bank borrowings; gearing ratio at 0%.

Outlook and guidance

• Expects continued global kitchenware market growth but notes significant uncertainties from trade protectionism, geopolitical tensions, and expiring China-US tariff arrangements in November 2026.

• Strategic focus on product quality, regional and channel diversification, organizational development, supply chain efficiency, and risk mitigation.