Swellfun disclosed its 2026 semi-annual report on the evening of August 28. First-half revenue was 1.082 billion yuan, down 27.78 percent year on year, and net profit was a loss of 6.2225 million yuan, swinging from profit to loss compared with the same period last year. This is the company's first half-year loss in 12 years, since the first half of 2014. First-quarter revenue was 816 million yuan, with net profit attributable to the parent company of 171 million yuan. Second-quarter revenue was about 266 million yuan, with a net loss attributable to the parent company of about 177 million yuan. The overall first-half loss was mainly dragged down by the second quarter. The company said performance was affected by the proactive optimization of channel inventory structure and related phased factors. Channel inventory fell by about 50 percent year on year, but inventory still reached 4.082 billion yuan, accounting for nearly half of total assets, and inventory turnover days extended to about 2,785 days. On the personnel side, a round of streamlining was completed in 2025, with the total workforce reduced by a net 282 employees and one-off severance compensation of about 44 million yuan incurred. In 2026, the company is still continuing to shrink its headcount, and the core senior management team has been almost entirely replaced. Controlling shareholder Diageo is simultaneously advancing workforce reductions and has launched a restructuring plan totaling 1.2 billion US dollars, including 514 million US dollars in severance costs for Europe, corporate and other regions, an increase of more than seven times compared with the previous fiscal year. It also recorded asset impairments of 263 million US dollars for North America and Mexico and brand impairments of 1.5 billion US dollars. The final number of global layoffs has not yet been announced.
Diageo PLCDiageo's restructuring plan includes $1.2 billion costs and impairments, with severance up sevenfold.
Sichuan Swellfun Co LtdFirst-half loss and Q2 net loss of 177 million yuan, with revenue down 27.78%.
