Hangzhou SF Intra-city Industrial (9699) H1 2026 earnings summary

Executive summary

• H1 revenue rose 14.7% YoY to RMB11,739.5m; gross profit increased 20.9% to RMB823.2m and profit attributable to owners rose 154.9% to RMB349.3m.

• Intra-city delivery orders grew over 30% YoY; scale efficiencies and improved operating efficiency lifted gross margin to 7.0%.

• Adjusted net profit, excluding share-based compensation, investment gains and related tax effects, rose 70.8% to RMB265.8m; reported profit included RMB222.3m share of JV profit, primarily unrealized investment gains.

Financial highlights

• Revenue was RMB11,739.5m, up 14.7% YoY; cost of revenue increased 14.2% to RMB10,916.3m as scale and rider delivery costs expanded.

• Gross profit rose 20.9% to RMB823.2m; gross margin improved 0.3 percentage points to 7.0%.

• Operating profit was RMB218.6m versus RMB150.1m; profit before tax was RMB448.1m versus RMB157.8m, including RMB222.3m share of JV profit.

• Profit for the period was RMB349.3m versus RMB137.0m; adjusted net profit was RMB265.8m versus RMB155.7m.

• Selling and marketing expenses rose 27.2% to RMB136.8m; R&D fell 20.9% to RMB55.0m, while administrative expenses rose 18.2% to RMB445.6m.

Outlook and guidance

• Priorities include high-quality sustainable growth, broader service scenarios, network efficiency, technology investment, AI deployment and unmanned delivery expansion; no quantified financial guidance was stated.

• Opportunities cited include diversified traffic channels, greater chain-brand penetration, food-delivery and on-demand retail growth, and expansion of third-party delivery and intra-city logistics.

• HK$26.9m of unused IPO proceeds was reassigned from potential strategic acquisitions to R&D and technology infrastructure, with utilization extended to end-2027.