Profit increased by 98.28% year-on-year, nearly doubling. BUTONG GROUP (06090) released its performance announcement for the first half of the year, planning to intensify AI upgrades for its core products.

BUTONG GROUP (06090) released its interim results for the six months ending June 30, 2026, reporting revenue of RMB 810 million, a year-on-year increase of 11.67%; gross profit of RMB 406 million, an increase of 13.37%; profit attributable to equity shareholders of RMB 96.179 million, up 98.28% year-on-year; and basic earnings per share of RMB 1.07. To outline its future development path, the Group has established a "dual-wheel drive" strategy based on two pillars: "simultaneous upgrade of products and services as well as expansion of innovative businesses," and "enhancing consumer value and expanding user demographics through dual-line collaboration." Relying on its existing R&D system, the Group continues to advance scientific and technological incubation and product innovation around new family lifestyle scenarios, strengthening multi-category collaborative capabilities, and promoting comprehensive development of lifecycle family solutions that cater to the needs of family CFOs. Through this approach, the Group aims to extend, strengthen, and optimize its industrial chain layout, achieving comprehensive upgrades and further integration of strategic positioning across various business segments. The Company has established a dedicated R&D department composed of multiple teams focused on user research, industrial design, structural design, visual design, and mold engineering. At the end of the reporting period, the R&D department consisted of 120 employees, many of whom are experienced industry professionals with rich expertise in industry and product development. During the reporting period, the Companys R&D expenditure was RMB 25.5 million, accounting for 3.1% of the total revenue in the same period. As of June 30, 2026, the Company had obtained 243 registered patents and 22 international registered patents in China. Revenue from online sales channels increased from RMB 531.6 million for the six months ending June 30, 2025, to RMB 583.9 million for the six months ending June 30, 2026, accounting for 72.1% of the Companys total revenue during the reporting period. During the same period, the Companys offline sales increased from RMB 194.3 million for the six months ending June 30, 2025, to RMB 226.6 million for the six months ending June 30, 2026, accounting for 27.9% of the Companys total revenue. The percentage of offline sales relative to total revenue increased from 26.8% for the six months ending June 30, 2025, to 27.9% for the six months ending June 30, 2026. This increase is mainly attributed to the Company's expansion of third-party stores operated by dealers or KA clients. In the second half of 2026, the Group plans to enhance the AI upgrades for its core products (i.e., baby strollers, child safety seats, cribs, and high chairs) and gradually launch innovative physical AI product categories. In the coming year, the Group will develop AI intelligent products that are suitable for home scenarios and meet the demands of domestic and international markets, focusing on family CFOs.