Zhou Hei Ya International (1458) H1 2026 earnings summary

Executive summary

• Total revenue for the six months ended June 30, 2026, increased by 19.5% year-over-year to RMB1,461.3 million, driven by channel expansion and improved operational efficiency.

• Net profit for the period was RMB91.5 million, down 15.2% year-over-year, with net profit margin declining from 8.8% to 6.3%.

• Gross profit increased 11.6% to RMB799.9 million, but gross margin dropped to 54.7% due to a higher proportion of lower-margin channel sales.

• The Group operated 2,972 retail stores across 221 cities in 28 provinces, with omnichannel sales volume up 35.2% year-over-year.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: RMB1,461.3 million (+19.5% YoY); Gross profit: RMB799.9 million (+11.6% YoY); Gross margin: 54.7% (down from 58.6%).

• Net profit: RMB91.5 million (-15.2% YoY); EPS: RMB0.05 (flat YoY); Profit before tax: RMB133.0 million (-9.0% YoY); Total comprehensive income: RMB83.3 million (-20.1% YoY).

• Selling and distribution expenses rose 24.9% to RMB589.2 million; administrative expenses fell 9.3% to RMB105.2 million.

• Net cash from operating activities: RMB176.3 million; net cash from investing: RMB83.8 million; net cash used in financing: RMB292.9 million.

• Cash and bank balances at June 30, 2026: RMB681.5 million (down from RMB775.3 million at Dec 31, 2025).

Outlook and guidance

• Focus for H2 2026: upgrade growth models, enhance channel coverage, strengthen brand and product competitiveness, and improve operational efficiency.

• Continued investment in product innovation, digitalization, and supply chain flexibility, with emphasis on cost reduction and per-store profitability.

• Overseas expansion and compound seasoning business to serve as long-term growth drivers.