Baiguoyuan (02411)'s revenue increased 14.5% to 5 billion yuan in the first half of the year, and the size of the store increased 53% year-on-year

Zhitong Finance App learned that on August 28, Baiguoyuan Group (02411) announced interim results for the six months ended June 30, 2026. During the period, the company achieved revenue of 5.08 billion yuan, up 14.5% year on year; gross profit of 609 million yuan, up 182.5% year on year, and gross margin increased to about 12.2%; profit attributable to company owners was 33.564 million yuan, compared with a loss of 342 million yuan in the same period last year, changing from loss to profit. At the same time, net cash from operating activities changed from a net outflow of 295 million yuan in the same period last year to a net inflow of 605.65 million yuan, and profit quality improved simultaneously. The total number of stores increased from 4,386 on June 30, 2025 to 6,709 on June 30, 2026, an increase of 53% over the previous year. This part of the stores consists of two parts: fruit retail stores and Seven Star Alliance brand partner stores.

Behind the reversal in performance, Baiguoyuan is shifting from phased adjustments to improving the quality of operations. During the reporting period, the company continued to optimize the single-store investment model, lower the franchise threshold, and promote stock store reform. The fruit retail network increased by 372 to 4,758 compared to the same period last year, covering more than 180 cities in 22 provinces and municipalities directly under the Central Government, and the store network returned to a growth trajectory. During the period, the total number of members of the company reached 97.695 million, online channel orders accounted for 27.8%, and the basic retail business market remained stable.

The application of technology has become an important gripper for improving efficiency. Baiguoyuan has built an enterprise-level AI platform based on long-term AI practice and is accelerating the large-scale implementation of artificial intelligence in core business scenarios. The intelligent ordering system and AI operation diagnosis system have covered all department stores, continuously improving inventory management, demand forecasting, and store operation efficiency. Through AI workload distribution, the customer service team's labor costs were reduced by 44%; the average number of stores covered by remote intelligent store visits per day was 5 times more efficient than traditional store visits. The company said that in the future, it will further promote the rapid deployment of AI models and agents within enterprises, and promote the extension of technological cost reduction and efficiency from single-point application to full-link collaboration.

While the main business is steadily recovering, Baiguoyuan is speeding up the release of supply chain and brand capabilities. During the reporting period, the total sales volume (GMV) of Shenzhen Bangguo products was about 1,401 billion yuan, an increase of 21.9% over the previous year; the company has cooperated with seven regional retail brands, and the number of its brand partner stores has reached 1951; the number of signature fruit brands has increased to 56. The company built an omni-channel supply platform around the “fully open supply chain” strategy, actively expanded customers such as retail, restaurants, and convenience stores, and explored new business formats such as “fruit+snacks” and community fresh retail.

Baiguoyuan said that in the future, it will rely on more than 20 years of experience in the fruit industry chain, continue to promote store quality improvement, supply chain capacity spillover, brand incubation, and AI platform construction, and gradually build a growth structure for “stable main business, expansion of new business formats, and platform-based services” based on the main fruit retail business.