Star Shine Holdings Group (1440) H1 2026 earnings summary

Executive summary

• Revenue declined 43.6% year-over-year to RMB162.8 million, mainly due to a sharp drop in footwear sales from ongoing US-China tariffs and intensified competition.

• Net profit reached RMB24.2 million, reversing a net loss of RMB22.5 million in the prior year, driven by strong IP merchandise performance and RMB27.3 million in fair value gains from investments.

• Gross profit increased 14.8% to RMB32.1 million, with margin improvement attributed to the IP merchandise segment.

Financial highlights

• Footwear revenue dropped from RMB248.9 million to RMB72.5 million, now 44.5% of total revenue (down from 86.2%).

• IP merchandise revenue reached RMB46.7 million, with strong profit contribution.

• Gross profit margin improved due to product mix shift.

• Selling and distribution expenses fell 64.7% to RMB5.1 million due to commission cancellation.

• Administrative expenses rose to RMB23.3 million, mainly from a RMB2.5 million impairment on loans to a joint venture.

• Net finance costs increased to RMB1.8 million due to lower interest income.

• No interim dividend declared.

Outlook and guidance

• Strategic resource reallocation away from lace and dyeing, focusing on higher-margin IP merchandise and AI-driven operational efficiency.

• Anticipates continued regulatory and tariff pressures, especially in lace and footwear.

• Plans to increase investment in AI infrastructure and e-commerce, with disciplined capital allocation.