Zhou Liu Fu Jewellery (6168) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB2,365.0 million, down 24.9% year-over-year, mainly due to declines in franchise and online business performance.

• Gross profit decreased 0.9% to RMB819.6 million, while net profit fell 6.5% to RMB388.2 million compared to H1 2025.

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

• Online business contributed over half of total revenue but declined 25% YoY due to gold price volatility and business adjustments; self-operated stores achieved 13% YoY revenue growth.

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

Financial highlights

• Revenue: RMB2,365.0 million (down 24.9% YoY).

• Gross profit: RMB819.6 million (down 0.9% YoY).

• Net profit: RMB388.2 million (down 6.5% YoY).

• Earnings per share: RMB0.86 (down from RMB1.09 in H1 2025).

• Interim dividend proposed: RMB0.44 per share.

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.