UNQ Holdings (02177), a leading Chinese e-commerce service provider for fast-moving consumer goods, recorded a solid turnaround in the six months ended 30 June 2026.

Financial performance • Revenue rose 11.2% year on year to RMB 644.88 million, ending a period of contraction. • Gross profit margin improved 2.1 percentage points to 36.7% on better terms with brand partners, a higher mix of premium products and exit from low-margin channels. • Net profit surged 101.8% to RMB 22.61 million, supported by a 111.8% jump in operating profit to RMB 25.99 million. Basic EPS reached RMB 0.14 (1H 2025: RMB 0.07).

Growth catalysts • Brands onboarded in 2025 entered their “release period,” while the RMB 122.80 million acquisition of Japan’s Akahige Pharmacy owner One Two Co. contributed RMB 15.00 million of revenue (2.3% of total) and RMB 1.20 million of net profit (5.3% of total). • Health products sales more than doubled (+120.1%) to RMB 191.24 million, driven by probiotics and eye-care lines. Beauty products advanced 27.1% to RMB 73.89 million. • Douyin (TikTok China) became an increasingly important sales channel, rising to 12.9% of total revenue from 8.6% a year earlier. B2C now represents 52.5% of sales, overtaking B2B’s 47.2%.

Cash flow and balance-sheet highlights • Operating activities generated RMB 67.43 million in net cash, versus an outflow in the prior-year period. • Cash and cash equivalents stood at RMB 243.97 million (31 Dec 2025: RMB 306.41 million), reflecting the cash purchase of One Two Co. and scheduled debt repayments. • Total borrowings fell to RMB 156.38 million, cutting the gearing ratio to –11.5% from –10.1% at year-end 2025. • Unutilised banking facilities totalled RMB 262.20 million.

Operational updates • Headcount reached 220 following the Japan acquisition, with 60.0% female employees. • AI-driven analytics are being deployed to optimise marketing spend and operational efficiency. • No significant contingent liabilities or post-balance-sheet events were reported.

Dividend The board declared no interim dividend for 1H 2026 (1H 2025: nil).

Outlook Management plans to deepen AI integration across operations, accelerate the proprietary-and-agency “dual-track” brand strategy, and complete the integration of Akahige Pharmacy to establish a new growth engine, while continuing to expand high-margin channels such as Douyin e-commerce.