ZJLD Group (6979) H1 2026 earnings summary

Executive summary

• Revenue grew 2.0% year-over-year to RMB2,546.1 million for the six months ended June 30, 2026, with gross profit up 3.2% to RMB1,520.9 million and net profit rising 1.0% to RMB580.7 million.

• Adjusted net profit (non-IFRS) increased 2.1% to RMB626.1 million, with adjusted net profit margin stable at 24.6%.

• Premium products drove growth, now accounting for 53.7% of revenue, while deluxe and mid-range segments declined.

• Strategic initiatives included the Premier Retailers Alliance model, monthly profit-sharing for Zhen 15, and expanded digitalization.

• Inclusion in the MSCI Global Small Cap Index and strong ESG ratings enhanced market visibility.

Financial highlights

• Gross profit margin improved to 59.7% (1H2025: 59.0%).

• Net cash used in operating activities decreased to RMB234.0 million (1H2025: RMB322.3 million).

• Basic and diluted EPS rose 1.1% to RMB0.176.

• No interim dividend declared for the period.

Outlook and guidance

• 2026 is seen as a strategic inflection point, with stabilization after a two-year industry downturn and renewed growth expected.

• Plans to extend successful business models to more product lines and deepen regional market penetration.

• Focus on maintaining healthy channel inventories, stable distributor margins, and expanding high-quality distributor base.