WEILONG Delicious Global (9985) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2026, rose 6.7% year-over-year to RMB3,714.9 million, driven by product innovation, brand building, and channel optimization.

• Net profit increased 4.0% year-over-year to RMB765.5 million, with a net profit margin of 20.6%.

• Gross profit grew 8.1% to RMB1,775.7 million, and gross margin improved by 0.6 percentage points to 47.8%.

• Interim and special dividends totaling RMB0.28 per share (RMB680.5 million) were declared, representing 90% of net profit for the period.

Financial highlights

• Distribution and selling expenses increased 26.9% to RMB669.2 million, mainly due to intensified brand promotion.

• Administrative expenses rose 11.7% to RMB224.6 million, reflecting investments in organizational development, talent, and digitalization.

• Net finance income increased 24.8% to RMB99.8 million; income tax expense decreased 13.8% to RMB251.9 million.

• Cash and cash equivalents plus term deposits over three months totaled RMB7,120.0 million, down 10.1% from year-end 2025, mainly due to capex and dividend payments.

• Gearing ratio improved to 23.5% from 30.1% at year-end 2025.

Outlook and guidance

• Focus on health-oriented, diversified, and personalized consumption trends, with ongoing product innovation and R&D optimization.

• Continued omni-channel expansion, digitalization, and supply chain standardization and optimization to support long-term growth.

• Proactive overseas market localization, ESG integration, and enhanced brand engagement.