PAGODA GP (02411) has released a positive profit alert for the first half of 2026, marking a sharp turnaround from a deep loss a year earlier.

The company expects net profit attributable to owners for the six months ending June 30, 2026, to be no less than RMB 20 million, successfully reversing the net loss of approximately RMB 342 million recorded in the same period of 2025. Revenue for the first half of 2026 is also forecast to grow by no less than 7% year-on-year. Profitability has improved significantly compared to the prior period, further confirming an inflection point in the company's operations.

This profit recovery is not the result of short-term cost-cutting, but rather the outcome of a systematic optimization of the business model. During the first half of the year, PAGODA GP deepened its application of AI technology across the entire operational chain. Digital tools such as an intelligent ordering system, a store profitability diagnostic system, and a large fruit knowledge model were rapidly deployed. These tools have effectively improved order accuracy, store operational efficiency, and supply chain turnover rates, reducing fruit spoilage and operating costs at the source.

At the same time, the company has continued to optimize its store network layout and product mix, while strengthening refined cost management. These multi-pronged efforts have steadily driven the overall recovery of profitability.

Building on the recovery of its core business, PAGODA GP is leveraging its full-chain supply chain advantages, cultivated over more than two decades in the industry, to advance a supply chain opening strategy and actively expand new B-end clients. It is also steadily exploring new business formats and store models, such as "fruit + snacks" and community fresh food retail, to inject incremental room for both revenue and profit growth.

Industry insiders note that this profit alert sends a clear signal of marginal improvement in the company's fundamentals, confirming that PAGODA GP has officially moved from a period of active adjustment into a business recovery phase. As digital systems continue to permeate all aspects of the industrial chain, and with the gradual implementation of its supply chain opening and business format innovation, the company's supply chain efficiency, product structure, and cost control levels still have room for further optimization. Its long-term growth value is expected to be gradually realized.