East Buy (HKEX: 01797) has issued a profit alert, forecasting substantial growth in both total revenue and net profit for the fiscal year ending May 31, 2026.
The company announced that total revenue for fiscal 2026 is expected to be between RMB 5.6 billion and RMB 5.8 billion, compared to RMB 4.4 billion in fiscal 2025. This represents a year-over-year increase of approximately 27.3% to 31.8%. Net profit for fiscal 2026 is projected to be between RMB 520 million and RMB 550 million, a dramatic rise from RMB 6 million in fiscal 2025, marking a surge of 8,566.7% to 9,066.7%.
Looking at the second half of fiscal 2026, total revenue is anticipated to range from RMB 3.3 billion to RMB 3.5 billion, up from RMB 2.2 billion in the same period of fiscal 2025, reflecting a 50.0% to 59.1% increase. Net profit for the second half is forecast at RMB 281 million to RMB 311 million, compared to RMB 103 million in the prior year, a jump of 172.8% to 201.9%.
The sharp rise in net profit is attributed to several factors.
The steady launch and expansion of the company's own-brand products, combined with a diversified range of third-party brand consignment goods, have improved the overall product mix. Several popular own-brand items have achieved strong market sales. Furthermore, a multi-channel strategy on platforms like Douyin, including more live-streaming accounts, an expanded host team, and extended broadcast hours, has boosted total transaction volume and diversified traffic sources.
Additionally, revenue from the company's own app has grown steadily, driven by an increase in paid members and higher user repurchase rates. Ongoing improvements in supply chain management and full-process quality control have also contributed to the significant year-over-year increase in net profit.
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