Yoho Group Holdings (2347) H2 2026 earnings summary

Executive summary

• FY25/26 GMV rose 0.9% to HK$855.6m as orders increased 20.8% to 523,000; revenue fell 2.3% to HK$736.8m amid a deliberate Margin-First shift toward higher-quality earnings.

• Gross margin reached a five-year high of 15.9%; profit was HK$16.8m, adjusted net profit HK$17.3m and EBITDA HK$30.4m.

• Strategic priorities include growing marketplace and higher-margin categories, strengthening OMO services, and measured expansion into mainland China and overseas markets.

Financial highlights

• Revenue declined 2.3% YoY to HK$736.8m; gross profit was HK$117.3m versus HK$118.1m, while gross margin improved to 15.9% from 15.7%.

• Profit before tax fell to HK$19.4m from HK$24.1m; profit and total comprehensive income was HK$16.8m versus HK$20.5m.

• Adjusted net profit was HK$17.3m versus HK$21.6m; EBITDA was HK$30.4m versus HK$32.6m.

• Basic and diluted EPS were both 3.41 HK cents, down from 4.13 HK cents; net profit margin was 2.3% versus 2.7%.

• Selling and distribution expenses rose to HK$72.2m, primarily on warehouse and new-store right-of-use depreciation; administrative expenses declined to HK$31.7m through cost control.

Outlook and guidance

• Hong Kong retail conditions are expected to remain challenging; Margin-First, disciplined capital allocation and focus on gross-profit return, efficiency and customer value remain priorities.

• The 1P business remains the core revenue and profit pillar, with resources directed to stable-demand, recognized brands and higher-return categories across YOHO and J SELECT.

• J SELECT is planned to develop into a premium international lifestyle platform; the second half of 2026 includes its comprehensive transformation to serve global consumers.

• Cross-border expansion will use public platforms for discovery and customer acquisition, and private channels for retention, with investment paced to control costs and risk.

• The 3P strategy emphasizes merchant participation and transaction activity; advertising services and gradual development of third-party logistics are planned to add platform capabilities and revenue streams.