Shanghai-based TUHU Car Inc. reported interim results for the six months ended 30 June 2026 that underscore resilient revenue growth alongside weaker profitability.
Financial Performance • Revenue advanced 11.4 % year on year to RMB 8.78 billion. • Gross profit increased 3.3 % to RMB 2.05 billion, while gross margin narrowed to 23.3 % (1H 2025: 25.2 %) due to intensified price promotions and higher input costs. • Profit for the period fell 40.0 % to RMB 183.95 million. • Adjusted EBITDA declined 32.2 % to RMB 327.50 million; adjusted net profit contracted 41.6 % to RMB 239.82 million, trimming the adjusted net margin to 2.7 % (1H 2025: 5.2 %).
Cost Structure and Expenses • Cost of revenue rose 14.2 % to RMB 6.73 billion, outpacing revenue growth, driven by raw-material inflation and promotional pricing. • Adjusted selling & marketing expenses expanded to 13.2 % of revenue (up 0.4 ppt) as the company boosted online traffic acquisition and store incentives. • R&D spend remained stable at 4.0 % of revenue, reflecting continued investment in AI-driven operational tools.
Operational Metrics • Total workshops reached 8,825, up 22.5 % YoY; franchised outlets accounted for 8,655, a 22.9 % jump, while self-operated stores rose to 170. • Registered users climbed 16.4 % to 175.0 million; trailing-twelve-month transacting users increased 17.2 % to 31.0 million. • Annual user repeat-purchase rate improved 0.7 ppt to 65.2 %, with existing customers generating 66.1 % of revenue. • NEV (new-energy vehicle) transacting users surged 56.7 % to 5.3 million, accounting for 17.2 % of the user base.
Cash & Liquidity • Total cash, treasury and restricted balances stood at RMB 7.65 billion at 30 June 2026, down 7.7 % from year-end 2025. • Net cash from operating activities slid to RMB 47.71 million (1H 2025: RMB 257.73 million) after inventory build-up and supplier payments. • Capital expenditures were RMB 102.40 million, mainly for warehouse automation and network upgrades. Net cash used in financing reached RMB 551.55 million, reflecting share repurchases and lease payments.
Capital Management • Year-to-date through the report date, TUHU repurchased 43.5 million Class A shares for approximately HK$199.29 million. • A minimum repurchase programme of 50 million shares is slated for completion by July 2028.
Strategic Priorities TUHU aims to leverage AI to improve store operations, expand coverage in lower-tier cities and develop new-energy vehicle after-sales capabilities. Management emphasised that continued investment during a subdued consumption environment is intended to secure market share and fortify long-term competitiveness.
Outlook Despite near-term margin pressure, TUHU reiterated confidence in China’s growing vehicle parc and its scalable platform, supported by a broadening service network and sizeable cash reserves.