Lancy has issued a mid-year earnings forecast, projecting first-half net profit of 65 million to 95 million yuan, a year-on-year decline of 65.78% to 76.59%. However, after stripping out non-recurring items such as the disposal of Ruoyuchen shares and back tax payments, net profit from recurring operating activities is expected to grow 30% to 60% year-on-year. The main reasons for the profit change include a year-on-year decrease of approximately 176 million yuan in investment income from the disposal of Ruoyuchen shares, a loss of about 71.26 million yuan from the decline in the fair value of remaining shares, and a total of around 52.56 million yuan in back corporate income tax and late payment surcharges due to the revocation of its high-tech enterprise status. The company stated that its women's wear and medical aesthetics business segments are actively expanding markets and optimizing product mix, leading to steady revenue growth, while supply chain optimization and refined cost management have reduced the overall cost-to-revenue ratio year-on-year. Lancy is principally engaged in mid-to-high-end women's wear and has also expanded into medical aesthetics and green baby and children's businesses. As of the end of 2025, its fashion women's wear segment had 476 stores, and for the full year 2025, this segment achieved revenue of approximately 2 billion yuan, up 3.85% year-on-year. In the first quarter of 2026, revenue reached about 570 million yuan, an increase of 13.11% year-on-year.
Lancy Co LtdRecurring operating profit expected to grow 30%-60% year-on-year, indicating strong underlying earnings.
Guangzhou Ruoyuchen Information TecLancy's disposal of Ruoyuchen shares reduced investment income by ~176 million yuan, implying a negative impact on Ruoyuchen's stock value or Lancy's stake.