Zhou Liu Fu Jewellery Co., Ltd. reported first-half 2026 revenue of RMB 2.37 billion, down 24.9 % from RMB 3.15 billion a year earlier, as weaker franchise and online sales outweighed growth in self-operated stores.
Gross profit held broadly stable at RMB 819.6 million (-0.9 %), lifting the gross margin 8.4 percentage points to 34.7 %. Net profit declined 6.5 % to RMB 388.2 million.
Segment performance showed diverging trends: • Franchise revenue dropped 36 % to RMB 788.7 million. • Online channels, still accounting for over half of group turnover, fell 25 % to RMB 1.23 billion amid gold price volatility and strategic adjustments to the online gold-bar business. • Self-operated stores delivered a 13 % revenue rise to RMB 241.0 million, supported by higher per-store sales and expansion to 117 outlets, including three newly opened duty-free locations in Hainan.
Total store count declined by 226 to 3,326 as the company continued to phase out underperforming franchise outlets while prioritising premium shopping-mall locations; shopping-mall and department-store sites now represent about 58 % of the franchise network.
Operating cash flow was negative RMB 147.00 million versus an inflow of RMB 469.43 million a year earlier, reflecting increased inventory and working-capital needs. Cash and bank balances stood at RMB 679.91 million at 30 June 2026, down from RMB 1.17 billion at year-end 2025. Interest-bearing bank and other borrowings rose to RMB 630.87 million from RMB 426.31 million, pushing the gearing ratio to 27.5 % (31 December 2025: 26.4 %).
Board directors approved an interim dividend of RMB 0.44 per share (tax inclusive), payable on 30 October 2026 to shareholders on record as of 6 October 2026.
During the period the company repurchased 13.22 million H shares for HK$222.65 million; an additional 0.33 million shares were bought back in July, bringing total treasury shares to 13.55 million.
Management highlighted plans to revitalise online sales through deeper e-commerce collaboration, high-margin product launches and revival of the gold-bar segment; accelerate “Jianbao Intangible Cultural Heritage” and IP-based designs; expand the sixth-generation store format in premium malls; and continue measured overseas growth, targeting six new stores in Thailand, Malaysia, Singapore, Hong Kong and Macau within 2026.
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