Zall Smart Commerce Group (2098) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 declined 59.4% year-over-year to RMB36,905.1 million, mainly due to a strategic reduction in low-margin supply chain management and trading business.

• Gross profit margin improved from 0.3% to 0.6% as the business mix shifted toward higher-value segments.

• The period ended with a net loss of RMB1,202.9 million (attributable to equity shareholders: RMB1,149.2 million), compared to a net profit in the prior year, driven by significant net valuation loss on investment properties and increased impairment losses.

• Liquidity pressures persisted, with net current liabilities rising to RMB7.4 billion and cash and cash equivalents dropping to RMB862.9 million.

• No interim dividend was declared for H1 2026.

Financial highlights

• Revenue: RMB36,905.1 million, down from RMB90.9 billion year-over-year.

• Gross profit: RMB223.1 million, down 19.6% year-over-year.

• Net loss: RMB1,202.9 million (vs. net profit of RMB70.0 million in H1 2025).

• Gross profit margin: 0.6% (up from 0.3%).

• Net valuation loss on investment properties: RMB1,135.8 million (vs. gain of RMB305.7 million YoY).

• Net gearing ratio increased to 59.3% from 42.1%.

Outlook and guidance

• Focus remains on technological innovation, digital transformation, and strengthening high-value verticals.

• Plans to expand digital services, invest in core projects, and optimize capital structure.