Changjiu Holdings (6959) H1 2026 earnings summary

Executive summary

• H1 2026 revenue fell 29.3% YoY to RMB492.8m; gross profit declined 1.6% to RMB149.9m as gross margin rose 8.5 percentage points to 30.4%.

• Net profit fell 64.1% to RMB24.1m, pressured by a RMB38.6m litigation provision and lower new automobile circulation revenue; adjusted net profit was RMB19.7m, down 70.8%.

Financial highlights

• Revenue was RMB492.8m versus RMB696.7m; cost of sales declined 37.0% to RMB342.9m.

• Operating profit was RMB35.2m versus RMB81.1m; profit before tax was RMB32.0m versus RMB84.0m.

• Net profit was RMB24.1m versus RMB67.1m; basic and diluted EPS were RMB0.1192 and RMB0.1185.

• Adjusted net profit, a non-IFRS measure, was RMB19.7m, down 70.8% YoY.

• Cash used in operating activities was RMB10.9m; investing activities generated RMB0.4m and financing activities used RMB169.4m, mainly for debt repayment.

Outlook and guidance

• H2 priorities include the three core businesses, prudent expansion based on market conditions and customer needs, stronger competitiveness and sustainable, high-quality growth.

• Monitoring-service plans include customer retention, upgraded equipment and systems, bank-enterprise connectivity, and dynamic risk assessment and controls.

• 9cheGO plans deeper county-market coverage, online-to-offline channels and overseas auto-export opportunities with OEMs.

• AI and data initiatives include customer profiling and operations, call-center and quality systems, smart marketing, AI Camera + Smart Badge and Lingzhi.