Zi Fu Yu (02420) The omni-channel strategy achieved a leapfrog breakthrough in the first half of the year, achieving net profit of about 138 million yuan, an increase of 30.0% year-on-year

According to the Zhitong Finance App, Zi Wu Yu (02420) announced the 2026 interim results. The total revenue was about 2,827 billion yuan, up 44.2% year on year; net profit attributable to shareholders was about 138 million yuan, up 30.0% year on year. Basic and diluted earnings per share were approximately $0.28.

According to the announcement, the increase in revenue was mainly due to the continued release of the Group's brand potential, the steady growth of the Amazon platform business on the main channel, and several times growth in other channels, such as the TikTok platform business, which led to a sharp rise in revenue.

In the first half of 2026, the omni-channel strategy achieved a leapfrog breakthrough, and the TikTok business exploded. In the context of the Group's brand system becoming more and more perfect and the TikTok platform entering a growth dividend period, each brand division comprehensively lays out content e-commerce, building talent teams and business processes from 0 to 1, and carrying out talent and mall operations; at the same time, relying on AIGC technology, the number of videos produced by the company increased month by month, with a cumulative output of over 50,000 in the first half of the year, successfully running through the commercial model and building a healthy sales structure of “Talent+Product Card+Homemade Video”. During the reporting period, TikTok channel revenue soared 662.1% year on year to about 289 million yuan, and the revenue share increased to 10.2%. The business officially moved from the investment period to a large-scale profit stage, demonstrating the Group's ability to adapt quickly across platforms. In the first half of the year, Amazon's basic market achieved steady growth under a high base, and revenue increased by 29.6% year-on-year to a sharp rise of about 2.353 billion yuan. In addition, the company collaborates with other third-party platforms and self-operated websites to maintain strategic tracking and pilot operation of emerging sales channels, and will quickly enter and seize market heights within an appropriate window period. Overall, the Group's channel dividends have gradually been released, the diversified growth structure has become healthier, and the resilience of operations to risks has increased markedly.

In the first half of 2026, the full AI link was deeply empowered, and organizational efficiency jumped dramatically. The company seizes opportunities for industry transformation and promotes the scenario-based implementation of AI in core processes such as product design, marketing and operation, product management, and supply chain. The application form has been upgraded from single-point tool assistance to a closed loop throughout the process, and the accuracy of operational efficiency and management decisions have been greatly improved. On the product design side, AI covers core scenarios such as creative generation, trend analysis, and style iteration, reducing human investment in hand-drawing and market research, while increasing the accuracy of popular model development. On the marketing side, the company's self-developed AIGC video factory was put into operation in the second quarter, achieving large-scale production of short videos, increasing production capacity by several times, and significantly reducing content production costs such as location shooting; at the same time, AI intelligent advertising diagnosis and automated pricing tools were fully applied to improve advertising efficiency. On the product and supply chain side, projects such as AI intelligent review, intelligent task assignment, and intelligent order tracking have been launched one after another to provide support for product replenishment and production progress tracking. During the reporting period, the Group's overall efficiency per capita increased by 35% compared to the same period last year.

In the first half of 2026, brand building progressed in depth, and the effectiveness of refined management continued to be released. During the reporting period, core brands achieved rapid growth, brand concentration increased dramatically, and the revenue share of the top ten core brands rose from 54% in 2025 to 65%. In terms of brand system construction, the core brand completed the iteration of the 2.0 version of the brand book, clarified user portraits and style, unified visual language and scenario application standards, formed a three-tier “brand image model — genetic upgrade — business model”, and implemented a serial development model to make the pallet structure more reasonable; in terms of brand marketing, the company created an integrated marketing system of “official media account+talent network+user community”, which relied on Instagram and TikTok official accounts to export brand narratives and collaborate with overseas social media experts to carry out brand promotion and product development overseas Private communities accumulate user assets and boost off-site traffic conversion. By the first half of the year, the number of overseas social media fans of core brands had exceeded 600,000. At the same time, along with the improvement of the brand BU, the company further promoted vertical brand management, more concentrated resource investment, and supported the implementation of a monthly dynamic assessment mechanism to continuously release management efficiency.

In the first half of 2026, the global supply chain was iteratively upgraded to continuously optimize product cost, quality and delivery cycle. The company increased overseas production capacity and built a global production capacity network with Vietnam and Myanmar as the core, and Cambodia and Turkey as additional points. Among them, the Myanmar base relied on cost advantages to achieve a rapid rise in production capacity, and the Vietnamese base successfully surpassed 10% overseas production capacity in the first half of the year with mature e-commerce support; at the same time, the company carried out research in emerging regions such as Indonesia and Bangladesh to improve the global supply chain network, reduce procurement costs and spread risks. In addition, the company implemented a centralized procurement mechanism for planned fabrics to effectively reduce pressure costs by increasing the reuse rate of fabrics; implementing special actions to improve pattern fabrics to systematically enhance product strength and drive a steady decline in return rates.