S.F. Holding Co. (002352) H1 2026 earnings summary

Executive summary

• H1 2026 revenue rose 5.9% to RMB 155.5 billion, with gross profit up 7.7% to RMB 20.9 billion and adjusted net profit (excluding non-recurring items) up 9.3% to RMB 5.0 billion, reflecting operational resilience amid external disruptions.

• Net profit attributable to owners was RMB 5.5 billion, down 4.1% due to a high base in 2025 from a one-off gain.

• AI-driven innovation, digitalization, and resilience strategies drove efficiency gains, cost reduction, and revenue growth, offsetting headwinds from high oil prices.

• Supply chain and international revenue surged 15.6% to RMB 39.6 billion, with core international revenue up 46.6%.

• Strategic equity investment in J&T completed, with broad cooperation in last mile delivery and cross-border logistics.

Financial highlights

• Gross margin improved to 13.4%, up 0.2 percentage points year-over-year.

• Adjusted net profit margin rose to 3.2% in H1 2026.

• Operating cash flow in H1 was RMB 11.2 billion, supporting ongoing investments and shareholder returns.

• Free cash flow for the period was RMB 5.0 billion.

• Basic EPS was RMB 1.10, down 5.2% year-over-year.

Outlook and guidance

• Full-year CapEx guidance maintained at RMB 12 billion, focused on automation, NEVs, and AI.

• Dividend payout ratio raised to 45%, with plans to increase to at least 50% by 2028.

• Management expects continued revenue and profit growth in H2, despite external uncertainties and high oil prices.

• Strategic focus remains on value-driven growth, digital transformation, and international expansion.

• Continued investment in AI, automation, and green logistics to drive efficiency and cost control.