Australian Excellent (01717) announced interim results with losses attributable to equity holders of approximately RMB705 million in year-on-year profit/loss

According to the Zhitong Finance App, Aoyou (01717) announced its 2026 interim results, with revenue of about 3.163 billion yuan, a year-on-year decrease of 18.6%; gross profit of about 519 million yuan, a year-on-year decrease of 68.1%; loss attributable to the company's equity holders was about 705 million yuan, a year-on-year profit to loss; and a loss of 39.69 points per share.

According to the announcement, the decline in revenue was mainly due to one-time active management adjustments during this period and external factors in the decline in China's birth rate, which led to increased competition in the industry. The losses were mainly due to the following adverse effects: (i) adjustments related to one-time inventory, which led to a sharp drop in gross margin; (ii) depreciation of non-cash assets relating to goodwill and other intangible assets due to prudent management assessments to further improve asset quality; and (iii) other one-time costs arising from the optimization of the Group's organizational structure and efficiency.