Zhou Liu Fu Jewellery (6168) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2026, declined 24.9% year-over-year to RMB2,365.0 million, mainly due to weaker franchise and online business performance.

• Gross profit decreased 0.9% to RMB819.6 million, while net profit dropped 6.5% to RMB388.2 million compared to the same period last year.

• Online business remained over half of total revenue but faced pressure from gold price corrections; self-operated stores grew revenue by 13% year-over-year.

• Franchise business underwent rationalization, with a net decrease in stores but improved average revenue per store in Q2.

Financial highlights

• Gross profit margin rose to 34.7%, up 8.4 percentage points year-over-year, driven by product mix and channel structure changes.

• Selling and marketing expenses increased 4.8% to RMB253.2 million; administrative expenses fell 6.8% to RMB60.7 million.

• R&D expenses rose 12.1% to RMB7.1 million; other expenses increased 43.7% to RMB18.5 million.

• Cash and bank balances stood at RMB679.9 million, down from RMB1,169.6 million at year-end 2025.

• Interest-bearing borrowings increased to RMB630.9 million, with a gearing ratio of 27.5%.

Outlook and guidance

• Online business expected to recover as gold price volatility subsides and new high-margin products are launched.

• Focus on product upgrades, channel synergy, and brand rejuvenation to drive medium- to long-term growth.

• Continued expansion in overseas markets, targeting six new stores in 2026.