Carpenter Tan released unaudited results for the six months ended 30 June 2026, showing revenue of RMB 263.39 million, down 8.5% year on year. The decline was attributed to softer market demand, reduced tourist traffic and weaker group-purchase sales.

Gross profit slipped 3.8% to RMB 171.00 million; however, the gross profit margin improved 3.1 percentage points to 64.9% on a richer product mix and cost containment. Profit before tax fell 7.0% to RMB 123.99 million, while net profit attributable to shareholders decreased 7.8% to RMB 100.49 million. Basic EPS came in at RMB 40.4 cents versus RMB 43.8 cents a year earlier.

Operating costs reflected mixed movements. Cost of sales contracted 16.1% to RMB 92.39 million in line with lower volumes. Selling and distribution expenses rose 6.4% to RMB 48.96 million on higher advertising and logistics spending, and administrative expenses grew 50.9% to RMB 26.67 million, driven by staff costs and depreciation. Other income increased 41.2% to RMB 32.14 million, buoyed by higher VAT refunds and government grants.

The balance sheet remained debt-free. Cash and cash equivalents stood at RMB 70.11 million, supplemented by RMB 381.00 million in non-pledged fixed deposits. Net assets totaled RMB 981.50 million, up 1.2% from end-2025. Net current assets improved to RMB 447.78 million. Capital expenditure was contained at RMB 5.16 million, down from RMB 11.24 million in the prior-year period. The company declared no interim dividend.

Operationally, the group managed 1,335 stores worldwide at period-end, comprising 1,329 franchised and six self-operated outlets. Offline POS sales fell 3% to RMB 424.4 million, while online sales slipped 13.0% to RMB 120 million amid platform subsidy changes. Overseas shipments grew 2.4% to RMB 1.86 million, and Hong Kong sales rose 38.5% to HK$2.81 million.

Management highlighted continued focus on flagship store roll-outs, network optimisation toward larger-format stores, technology upgrades—such as new dust-free coating lines and AI-driven customer engagement—and disciplined cost control. The company reiterated its long-term brand strategy, refusal to engage in price wars and commitment to expanding green manufacturing and disability-inclusive employment.

Looking ahead to H2 2026, Carpenter Tan plans to accelerate flagship openings in Shanghai and Hong Kong, strengthen online-offline integration, pursue process automation, and protect intellectual-property rights, while maintaining a debt-light balance sheet to support strategic initiatives.