ZJLD Group (6979) H1 2026 earnings summary

Executive summary

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

• Adjusted net profit (non-IFRS) rose 2.1% to RMB626.1 million, maintaining an adjusted net profit margin of 24.6%.

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

• Li Du brand delivered strong revenue growth (+28.9%), while Zhen Jiu declined (-10.0%); Xiang Jiao and Kai Kou Xiao remained stable.

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

Financial highlights

• Revenue: RMB2,546.1 million (+2.0% YoY); Net profit: RMB580.7 million (+1.0% YoY); Gross profit: RMB1,520.9 million (+3.2% YoY); Gross margin: 59.7%.

• Adjusted net profit: RMB626.1 million (+2.1% YoY); Adjusted net margin: 24.6%.

• Basic and diluted EPS: RMB0.176 (+1.1% YoY); Adjusted EPS: RMB0.185 (+2.5% YoY).

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

• No interim dividend declared for the period.

Outlook and guidance

• 2026 is seen as a strategic turning point, ending a two-year industry downturn and marking the start of a new growth cycle.

• Plans to extend successful business models (Premier Retailers Alliance, monthly profit-sharing) to more core products and deepen regional market penetration.

• Focus on revitalizing high-end and mid/low-end product lines and maintaining healthy channel inventories.

• Continued emphasis on channel health, inventory management, and recruiting high-quality distributors.