JF SmartInvest released its unaudited 1H 2026 results, showing that gross billings held broadly steady at RMB 1.68 billion, down only 1.5% year on year, while reported revenue fell 38.6% to RMB 1.29 billion because a large portion of repeat-customer orders had not yet been recognised. Contract liabilities—future revenue to be booked—surged 133.6% to RMB 1.89 billion, indicating a sizable pipeline for 2026-27.
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Profitability weakened markedly in the current recognition period. Gross profit declined 43.2% to RMB 1.05 billion and operating profit contracted 94.6% to RMB 55.29 million. Net profit attributable to shareholders dropped 96.3% to RMB 32.32 million. On a non-HKFRS basis, which excludes RMB 81.79 million of share-based compensation, adjusted profit came in at RMB 113.70 million, down 87.5% from the prior-year period. Basic earnings per share slipped to RMB 0.07 from RMB 1.96.
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Cost discipline partly mitigated the revenue shortfall. Sales and marketing expenses fell 12.4% to RMB 579.97 million as the company moderated internet traffic procurement. Research and development outlays increased 13.7% to RMB 167.06 million, representing 13.0% of revenue, underscoring continued investment in artificial-intelligence and quantitative technologies. General and administrative costs rose 24.9% to RMB 298.98 million, reflecting head-count additions and higher share-based charges.
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The balance sheet remains liquid. Cash, cash equivalents and other liquid investments stood at RMB 4.15 billion at end-June, virtually unchanged from year-end 2025. Operating cash flow climbed to RMB 394.10 million, a year-on-year increase of RMB 352.0 million, benefiting from strong customer repurchases and lower marketing spend. The gearing ratio rose to 53.6% from 42.6% due to higher contract liabilities.
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During the period JF SmartInvest completed the HKD 108.81 million acquisition of JF Financial, adding securities and futures brokerage, investment advisory and asset-management licences in Hong Kong. The company also closed earlier acquisitions of Forthright Securities and Forthright Capital, integrating them into an overseas expansion strategy focused on “dedicated investment advisory”, “in-depth investment research” and “AI intelligent investment”.
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Product development centred on the “technology + investment research” roadmap. The multi-agent “FinSphere AI Agent” system was fully rolled out, while the AI-native “FinSphere Agent Claw” app and the Xingtou Quantitative Platform went live with six AI-driven strategy portfolios. Hardware-enabled Enjoy-Stock Pad entered scale-up phase, selling 38,000 units in 1H 2026 and launching an enhanced “Intelligent Navigation Edition” in July. The low-ticket Jiuyao Stocks suite expanded to 110 mini-products and surpassed 350,000 subscribers, with user repurchase rates up by roughly fifty percentage points.
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To support growth, the company upgraded its omni-channel traffic engine, operating about 1,180 online accounts with 73 million followers. Monthly active users on the flagship SmartInvest App rose roughly 15%, and the 30-day retention rate exceeded 60%.
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Capital returns remained a priority. Following HK$405.90 million in cash dividends for FY 2025—including a HK$0.36 per-share final dividend paid in July—JF SmartInvest repurchased 4.44 million shares during the half for HK$134 million, which are held as treasury shares for future incentive schemes. The board did not declare an interim dividend.
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Looking ahead, management reiterated commitment to accelerating the group-wide AI initiative, enriching the “AI + Quantitative” product mix, scaling overseas securities and digital-asset services through the Forthright platform, and enhancing traffic monetisation. Contract liabilities of RMB 1.89 billion are expected to convert into revenue primarily in 2026-27, providing visibility on future topline recovery.