FOREST CABIN (02657), recognized as the leading premium domestic skincare brand, reported its interim results for 2026 on August 31. The company achieved a revenue of RMB 1.50 billion in the first half, marking a 42.6% year-on-year increase, with adjusted net profit climbing 42.1% to RMB 285 million. The gross margin stood at a robust 81.6%, with all key operational metrics continuing the steady growth trend established since its listing. At the results briefing, founder, Chairman and President Sun Laichun outlined the company's commitment to executing its long-term brand strategy, consolidating market leadership through premium positioning, expanding into new segment markets via a multi-brand approach, and opening up growth avenues through global expansion, all while balancing short-term operations with long-term brand equity for high-quality, sustainable growth.

Driven by a synergistic effect between product innovation and channel expansion, FOREST CABIN has seen its product mix continue to optimize. The company adheres to its "1+4+N" pyramidal product structure, anchoring its core flagship offerings while aggressively developing new categories to capture a broader consumer base and address diverse skincare needs. As the brand's cornerstone, cumulative sales of its Camellia Anti-Wrinkle Repair Essence Oil surpassed 70 million bottles by June, maintaining its top retail position in China's facial essence oil segment for 12 consecutive years. Meanwhile, the revenue contribution from the essence oil category decreased to 34.3% in H1 2026 from 45.5% in H1 2025, successfully mitigating reliance on a single blockbuster product. The sixth-generation Camellia Anti-Wrinkle Essence Oil has been launched, further cementing its competitive edge. Beyond essence oils, a clear second growth curve is emerging. The "Little Gold Bead" essence water, launched in 2025, has seen rapid volume growth, topping Douyin's toner chart during January-June and the 618 shopping festival. In May, the brand entered the massive whitening skincare market with a new whitening essence oil, which quickly reached the top three in its whitening category during live-stream testing, injecting fresh momentum for future growth.

Synergies between online and offline channels are being fully realized. Offline, the brand has deepened its presence in high-end shopping malls, with revenue up approximately 23% year-on-year in the first half. As of the reporting period end, the company operated 638 stores nationwide, including 410 directly-operated outlets, reinforcing its premium positioning. Online, growth has been robust across multiple platforms, with overall gross merchandise value (GMV) surging over 100% year-on-year during the 618 promotion, with significant gains on Douyin, Tmall, JD.com, and WeChat. The brand secured the No.1 position on Douyin in both the facial essence oil and toner/astringent categories, further solidifying its competitive advantage in the premium domestic skincare market. By mid-2026, the brand's active customer base reached 7.3 million, with a repurchase rate consistently holding at approximately 32.5%, significantly above the industry average, demonstrating strong user loyalty.

Continued high investment in research and development underpins FOREST CABIN's steady performance. R&D spending reached RMB 34 million in H1 2026, an 88.8% increase year-on-year, outpacing revenue growth. As of the end of June, the company held 103 patents, including 49 invention patents related to core ingredients, technologies, or camellia formulations, covering proprietary compounds like Qingxuncui and Shancha Xihei 677. Breakthroughs in raw materials have been notable this year. In March, two self-developed new cosmetic ingredients, "Zhejiang Red Camellia Flower Extract" and "Zhejiang Red Camellia Leaf Extract," completed filing, bringing the company's total self-developed Zhejiang red camellia series to five. Furthermore, the company's "Zhejiang Red Camellia Multi-Dimensional Full-Value High-Utilization Technology and Industrialization Application" project received the First Prize in the Science and Technology Progress Award from the China General Chamber of Commerce, earning industry-wide recognition for its industry-academia-research integration. In terms of technology commercialization, in April the company launched "Microfluidic Suspended Oil Lock-Fresh Technology," a platform technology developed over four years, unveiling three new ingredients: Camellia Oil Coagulated Beads, Red Camellia Thousand Peptides, and Dual PDRN (self-developed Red Camellia PDRN & Salmon PDRN). It also took the lead in drafting and releasing the "Technical Specification for Oil-Based Functional Oil-Coagulated Bead Essence Water for Oil-Nourishing Skincare" group standard, steering the industry towards a "technology + standards" driven model. The company is simultaneously developing patents around PDRN penetration-enhancing technology and has co-authored China's first group standard focused on PDRN raw materials. In the first half of 2026, FOREST CABIN, in collaboration with national and industry regulators, industry associations, and leading enterprises, participated in formulating and releasing 13 national, industry, and group standards covering raw materials, product specifications, efficacy evaluation methods, testing methodologies, and technical guidelines. R&D efforts intensified in the second half of the year. The company inaugurated a root-cause cellular anti-wrinkle research platform with Shanghai Jiao Tong University, was awarded IFSCC Gold Partner status, and, with third-party institutions, released China's inaugural "China Root-Cause Cellular Anti-Wrinkle Skincare Blue Book," comprehensively disseminating its core research findings and marking a significant leap in its overall R&D capabilities.

Alongside delivering steady financial results, FOREST CABIN has disclosed an interim dividend proposal. The company plans to distribute an interim dividend of RMB 1.32 per share, totaling approximately RMB 185 million in cash. Combined with the final dividend for fiscal 2025 of about RMB 135 million already paid earlier this year, cumulative dividends since listing will reach RMB 320 million. Additionally, a share buyback program initiated in early July has repurchased 1.90 million shares for approximately HKD 94.93 million to date. The company has also unveiled a forward-looking three-year dividend policy (2026-2028), committing to distribute no less than 50% of its annual net profit attributable to parent shareholders each year, providing a clear and stable return expectation to reinforce its valuation foundation in the capital markets. Looking ahead, FOREST CABIN affirmed its dedication to its premium beauty core, steadfastly pursuing a development path centered on premiumization, multi-brand expansion, and globalization, driven by product innovation, channel deepening, brand elevation, and organizational efficiency, aiming to deliver stable operations and high-quality growth to repay investor trust and support.