Huakai Yibai Q1 2026 Net Profit Jumps 574% as Revenue Falls 16%

Huakai Yibai (300592.SZ) reported a sharp profit rebound in the first quarter of 2026, with net profit attributable to shareholders rising 574% year on year to 71.5433 million yuan, while revenue fell 16.05% to 1.924 billion yuan, according to Jiemian News. The company said it reduced promotions and slowed restocking to prioritize profitability. For full-year 2025, Huakai Yibai posted revenue of 9.133 billion yuan, up 1.23%, while net profit attributable to shareholders fell 13.78% to 147 million yuan, after booking 102 million yuan of impairment provisions including 56.77 million yuan of inventory write-downs and 33.83 million yuan of fixed-asset impairments. The report said the Q1 2026 profit surge was helped by lower impairment charges after inventory was cut from 1.819 billion yuan at end-2024 to 956 million yuan at end-2025 and further to 881 million yuan at end-Q1 2026. The company’s sales remained highly concentrated on Amazon: in 2025, sales via Amazon totaled 5.695 billion yuan, or 62.35% of revenue, while the top five customers accounted for 7.279 billion yuan, or 79.69%. By channel, Walmart contributed 6.26%, AliExpress 4.52%, Temu 4.47% and TikTok 2.08%. Huakai Yibai’s goodwill stood at 826 million yuan at end-Q1 2026, equal to 34% of net assets of 2.395 billion yuan. The company has pursued acquisitions since 2021, including buying Yibai Network for 1.81 billion yuan, acquiring Tongtuo Technology for 700 million yuan in cash in 2024, and in June 2026 investing 120 million yuan for a 60% stake in Shenzhen Bixunhe before Shenzhen Bixunhe spent 200 million yuan to buy operating assets of Hong Kong Hongji Holdings. The acquired Hong Kong target reported 2025 revenue of 293 million yuan and net profit of 26.24 million yuan, but had negative net assets of 12.6666 million yuan at end-2025; Huakai Yibai agreed performance commitments requiring non-recurring-adjusted net profit of at least 30 million yuan in 2026 and 40 million yuan in 2027. In mid-June, shareholder Zhou Xinhua and concert party Luo Ye, who together held 36.97 million shares (9.40%), announced plans to sell up to 11.68 million shares (2.97%). Shareholder He Zhiliang, holding 240,000 shares (0.06%), planned to sell up to 120,000 shares (0.03%). The report noted Zhou and He had already sold 11.69 million shares (2.89%) in March 2026.