Laiyifen has released its 2026 half-year performance forecast, estimating a net loss attributable to the parent company of around 90 million yuan, and a net loss after deducting non-recurring items of approximately 106 million yuan. Compared with the first half of 2025, when the net loss attributable to the parent was 50.6839 million yuan and the loss after deducting non-recurring items was 56.6132 million yuan, the net loss attributable to the parent in the first half of this year has widened by about 78 percent year-on-year, while the loss after deducting non-recurring items has widened by about 87 percent. The company said the main reasons for the loss are pressure on consumer markets in its key sales regions, intense industry competition, and a year-on-year decline in revenue scale and gross margin caused by proactive adjustments to store structures and sales models in some regions. In addition, the impact of non-recurring gains and losses on net profit during the reporting period was about 16 million yuan, mainly from government subsidies, investment income from bank wealth management products, and fair value changes in financial assets, but this was insufficient to cover the losses from the main business. Laiyifen is in a transition period from a traditional direct-sales model to a dual-driver model of direct sales plus franchising. As of the end of 2025, the proportion of franchised stores had risen to 63 percent, and franchising revenue had grown 105.08 percent year-on-year. However, the gross margin of the franchising business was only 12.54 percent, far lower than the 47.83 percent of directly operated stores, highlighting a sharp contradiction of increasing revenue without increasing profit.
Shanghai Laiyifen Co LtdForecasts first-half net loss of 90 million yuan, widening 78% year-on-year, with revenue decline and margin pressure.