Lionhead Shares Reports Higher H1 Revenue, Advances 662 Million Yuan Acquisition of Lipu Technology

Lionhead Shares (600539) reported first-half 2026 revenue of 243 million yuan, up 6.98% year on year, while net profit attributable to shareholders rose 18.03% to 663,500 yuan. Non-GAAP net profit attributable to shareholders was a loss of 81,700 yuan, narrowing from a year earlier, according to Jiemian News. The company said total profit fell 13.25% to 5.5539 million yuan, while operating cash flow turned to an outflow of 6.3211 million yuan from an inflow a year earlier, mainly because the addition of new brands in its e-commerce business increased day-to-day operating expenses. E-commerce distribution generated 221 million yuan, or 91.02% of revenue, while faucet manufacturing contributed 22 million yuan, or 8.98%. Lionhead Shares also said its plan to buy 97.4399% of Hangzhou Lipu Technology Co. Ltd. through a share issue and cash payment, while raising 220 million yuan in supporting funds, has been reviewed by the Shanghai Stock Exchange's M&A committee. The deal values the target at 662 million yuan excluding the supporting funds and still needs approval for registration from China's securities regulator before it can proceed. As of June 30, 2026, Lipu Technology had total assets of 632 million yuan and total liabilities of 410 million yuan; in the first half, it posted revenue of 153 million yuan, down 2.35%, and net profit attributable to shareholders of 8.7135 million yuan, up 100.58%.