FULU HOLDINGS reported interim results for the six months ended 30 June 2026, highlighting improved profitability metrics amid a deliberate shift toward higher-margin business lines.

Revenue dropped 28.40% year on year to RMB112.66 million, reflecting strategic exits from low-return segments and softer digital-goods demand. Gross profit fell a milder 21.30% to RMB90.96 million, lifting the overall gross margin to 80.7% from 73.4% a year earlier.

Profit before tax rose 11.50% to RMB35.72 million, while profit attributable to equity holders declined 23.50% to RMB23.06 million owing to a larger non-controlling interest share. Adjusted profit attributable to owners (excluding FX and share-based items) slipped 18.50% to RMB25.46 million.

Segment trends diverged. Lifestyle remained the largest contributor with revenue of RMB54.19 million (-6.6% YoY). Leisure & Entertainment revenue contracted 41.70% to RMB29.78 million; Games fell 23.80% to RMB16.37 million; Corporate Welfare shrank 53.80% to RMB11.75 million; and Telecommunications slid 59.50% to RMB0.56 million. Total GMV across all segments eased 5.90% to RMB3.79 billion.

Cost efficiency improved. Selling and distribution expenses decreased 34.90% to RMB21.23 million, administrative expenses were down 30.10% to RMB26.72 million, and R&D spend contracted 36.40% to RMB10.43 million.

The balance sheet remained solid, with cash and cash equivalents of RMB325.14 million and no net debt. Current assets stood at RMB1.65 billion versus current liabilities of RMB0.46 billion, yielding a current ratio of roughly 3.6 times. Capital expenditure was minimal at RMB0.07 million.

Operating cash flow reached RMB54.73 million; modest investing outflows of RMB48.48 million and financing outflows of RMB4.06 million left net cash up RMB2.19 million for the period.

No interim dividend was declared. After period-end, the board announced a special dividend of HK$0.342 per share, paid on 18 August 2026.

Management reiterated its strategy of “prudent operations, value priority, and technology-driven growth,” targeting continued portfolio optimisation and wider adoption of AI across business units.