Giordano International (00709) announces interim results. Profit attributable to shareholders of HK$108 million decreased by 10.74% year-on-year, and plans to pay interim interest of HK6.7 cents per share

According to the Zhitong Finance App, Giordano International (00709) announced results for the six months ended June 30, 2026. The group achieved revenue of HK$1,914 million during the period, a decrease of 1.03%; profit attributable to the company's shareholders was HK$108 million, a decrease of 10.74% year on year; basic profit per share was 6.7 HK cents, and an interim dividend of HK6.7 cents per share was proposed.

Despite facing a severe macroeconomic environment and geopolitical uncertainty, the Group showed steady medium-term performance. The reported revenue fell slightly by 1.0% on a young basis. The decline was mainly concentrated in the Gulf Cooperation Council, the Group's largest market in the world. The market faced headwinds in March due to the ongoing crisis in the Middle East region. Excluding the Gulf Cooperation Council market, the Group's basic revenue increased by 0.4% year-on-year, highlighting the resilience of core market demand and commercial execution results.

The Group's e-commerce business improved by 12.5% in the first half of 2026, reflecting the successful implementation of the Group's “digital leadership” strategy. Among them, the Cooperation Council for the Arab States of the Gulf and mainland China grew by 33.3% and 11.9%, respectively.

The Group is deliberately slowing down the wholesale trend, and this move reflects the Group's reduced delivery to South Korea and continued optimization of its network (including selected franchisees) in mainland China due to redistribution of the inventory of 48.5% joint ventures. These initiatives are deliberate actions to maintain channel health and support sustainable growth. As a result, retail sales increased by 0.5% year-on-year. Excluding the impact of the Middle East conflict on the Cooperation Council for the Arab States of the Gulf, the increase should be 2.9%. Overall, the first half of the year showed the Group's flexibility and business diversification, and had a solid foundation, which can accelerate growth again as the regional situation returns to normal.