ZHOU LIU FU (06168) has released its interim results for the six months ended June 30, 2026. The group recorded revenue of approximately RMB 2.365 billion, a year-on-year decrease of about 24.9%. Gross profit stood at approximately RMB 820 million, down roughly 0.9% from the prior year. Net profit reached RMB 388 million, representing a decline of approximately 6.5% year-on-year. The board has declared an interim dividend of HK$0.44 per share.

During the first half of 2026, online operations continued to account for over half of the group’s total revenue and maintained a relatively high profit margin, serving as a key pillar of the business fundamentals. However, due to adjustments in the group's online gold bar business and a notable pullback in gold prices, the online segment faced pressure from the second quarter onward, leading to a decline in revenue.

In contrast, the group’s offline retail revenue grew by 13% year-on-year in the first half of 2026, with average store revenue surging by 17% since the second quarter. Self-operated stores, primarily located in mid-to-high-end shopping malls in first- and second-tier cities, saw their count steadily increase to 117 during the reporting period.

Since the start of 2026, volatile gold prices have weighed on the group’s overall business volume. Franchise model revenue accounted for approximately 33% of total revenue, while the self-operated model contributed around 67% (including both online and offline retail). The sharp fluctuations in gold prices during the reporting period dampened offline consumer purchasing enthusiasm in the short term, placing considerable pressure on the gold jewelry consumption market. Specifically: (1) franchise model revenue fell 36% year-on-year to RMB 789 million; (2) online sales channel revenue dropped 25% year-on-year to RMB 1.228 billion, reflecting both the gold bar business restructuring and price volatility; and (3) self-operated store revenue rose 13% year-on-year to RMB 241 million in the first half. Since last year, the group has been consolidating channel resources, optimizing market layout, and enhancing store quality, with initial results now emerging—same-store revenue has grown by 7% year-on-year since the second quarter.