Lancy Co Ltd

Lancy Co. disclosed its 2026 semi-annual report on the evening of August 28. In the first half, it achieved operating revenue of approximately 3.208 billion yuan, up 12.06% year-on-year, but net profit attributable to the parent was about 111 million yuan, down 59.94% year-on-year, while non-GAAP net profit was about 184 million yuan, up 35.26% year-on-year. By business segment, medical aesthetics revenue was 1.619 billion yuan, up 14.96% year-on-year, with a gross margin of 59.50%; women's apparel revenue was 1.121 billion yuan, up 13.44% year-on-year, with a gross margin of 65.36%; and baby and children's business revenue was 448 million yuan, up 2.99% year-on-year, with a gross margin of 64.09%. The company focuses on three major segments: fashion women's apparel, medical aesthetics, and green baby and children's products. It owns brands such as Lancy, Milan Bailu, and Agabang, and as of the end of the reporting period, it had 46 medical aesthetics institutions.

Semir Apparel disclosed its 2026 interim report. In the first half, it achieved operating revenue of 6.722 billion yuan, up 9.32% year on year, and net profit of 479 million yuan, up 47.45% year on year. Basic earnings per share were 0.18 yuan, and the company plans to pay a cash dividend of 1.5 yuan for every 10 shares. The company said that in the first half it steadily advanced its dual-core, dual-potential, and globalisation strategy, continuing to invest resources in deepening and upgrading the two main brands, Semir and Balabala, in brand building, channel upgrades, and product iteration, while promoting growth in its children's sports brand business and advancing the construction of a multi-tier channel matrix for the MOP brand. Among peers, China Lilang posted first-half operating revenue of 2.065 billion yuan, up 19.5% year on year, but net profit attributable to the parent fell 11.2% to 215 million yuan. ST Ruyi reported first-half operating revenue of 160 million yuan, up 3.4% year on year, with a net loss attributable to the parent of 94 million yuan, narrower than the same period last year. Lancy Company expects first-half net profit attributable to the parent of 65 million to 95 million yuan, down 65.78% to 76.59% year on year, mainly because investment income recognised from the disposal of Ruoyuchen shares fell by about 176 million yuan year on year. National Bureau of Statistics data show that from January to June 2026, total retail sales of consumer goods reached 24.8722 trillion yuan, up 1.3% year on year, of which retail sales of clothing, footwear, hats, and textiles totalled 770.9 billion yuan, up 6.7% year on year.

Lancy's controlling shareholder Shen Dongri and Weng Jie have dissolved their marriage, with Shen transferring 80.4827 million shares to Weng, representing 18.19% of the company's total equity. Based on the closing price on July 24, the stake is valued at approximately 922 million yuan. After this equity change, Shen's shareholding drops to 29.63%, but he remains the controlling shareholder, and the actual controllers are still Shen Dongri and his sister Shen Jinhua, who together hold 38.38%. The company's first-half earnings forecast shows net profit is expected to be between 65 million and 95 million yuan, a year-on-year decline of 65.78% to 76.59%. However, excluding the impact of investment gains and losses, net profit from daily operating business is expected to grow 30% to 60% year-on-year. In addition, the company recently had its high-tech enterprise qualification for 2023 to 2025 revoked, and the specific impact is yet to be determined.

Lancy announced that it expects net profit attributable to shareholders of the listed company for the first half of 2026 to be between 65 million yuan and 95 million yuan, a year-on-year decline of 65.78% to 76.59%.

Lancy Shares announced that the company has been stripped of its high-tech enterprise qualification for the years 2023 through 2025. The specific impact is pending clarification from tax authorities, and the final outcome will be subject to subsequent disclosures.