Hong Kong – 28 August 2026 – Huitongda Network Co., Ltd. reported resilient first-half 2026 results, demonstrating the early impact of its strategic pivot toward “FMCG retail chains + AI technology” despite softer top-line sales.
Financial Highlights (six months to 30 June 2026)
• Revenue slipped 3.10 % year on year to RMB 23.58 billion, reflecting deliberate scale-back of low-margin categories such as agricultural inputs, vehicles and building materials. • Gross profit rose 6.80 % to RMB 1.21 billion; gross margin expanded 50 bps to a record 5.1 % as product mix shifted toward higher-margin FMCG and AI services. • Operating profit grew 11.90 % to RMB 398.66 million. • Net profit increased 22.00 % to RMB 291.07 million; profit attributable to equity holders advanced 10.50 % to RMB 153.11 million. • Net cash from operations remained positive for an eighth consecutive year at RMB 366.52 million (-11.20 % YoY); cash and cash equivalents climbed 30.60 % to RMB 3.32 billion.
Segment Performance
Commerce Business (98 % of revenue) – Sales fell 3.70 % to RMB 23.06 billion. – Intelligent Technology Products were broadly stable at RMB 18.91 billion (-0.20 %). – FMCG revenue surged 78.60 % to RMB 483.39 million, buoyed by self-owned liquor and beverage brands and new channel expansion. – “Others” declined 22.50 % to RMB 3.67 billion following the retrenchment of lower-yield categories. – Commerce gross margin improved to 3.6 % (3.4 % in 1H 2025).
Service Business (2 % of revenue) – Revenue jumped 43.80 % to RMB 447.90 million, led by Merchant Solutions (+178.10 %) and AI products (+32.30 % to RMB 78.91 million). – Paid subscription users grew 15.50 % to 40,706, while total subscription users fell 17.50 % as free-tier rationalisation continued.
Operational Metrics & Strategic Progress
• Total registered member retail stores expanded 2.40 % to 256,954; nearly 5,000 new FMCG chain stores opened. • The proprietary “Qiancheng Cloud” large language model and 24 scenario-based AI agents completed full rollout across store systems; enterprise platform “LeapoAI” entered commercial promotion phase. • Ongoing supply-chain initiatives deepened partnerships with Apple, Lenovo, Yili, Wahaha and others; high-margin self-owned liquor brands “Taohuatan” and “Gugong” continued to scale. • ESG credentials strengthened with inclusion in S&P Global’s Sustainability Yearbook (China Edition), ranking in the top 1 % of Chinese companies.
Cost & Capital Structure
• Selling & marketing expenses rose 3.40 % to RMB 478.33 million amid AI product promotion; administrative costs fell 12.40 % to RMB 128.04 million. • R&D investment increased 18.60 % to RMB 35.07 million, reflecting intensified AI development. • Inventories grew 10.20 % to RMB 2.08 billion; turnover cycle held at 16 days. • Net finance costs were largely flat at RMB 64.57 million. • In February 2026 Huitongda acquired a 25 % stake in Jin Tong Ling Technology Group for RMB 994.43 million, now accounted for as an associate. • Treasury shares stood at 1.40 million after repurchasing 50,000 H shares for HK$0.47 million in January 2026.
Outlook & Capital Allocation
Management reiterated commitment to accelerating AI commercialisation, expanding FMCG retail chains and leveraging “industry + capital” synergies with Jin Tong Ling and recently acquired Boundary Consulting. Given ongoing investment requirements, the Board did not declare an interim dividend and signalled continued flexibility to deploy cash toward high-return projects and selective share buybacks.
No material events were reported after the balance-sheet date.