Net profit surged by 98.28%, AI implementation, smart factory production: The value leap of BUTONG GROUP (06090) has just begun.

In the first half of 2026, the domestic high-end household consumption market steadily evolved, with consumer demand shifting from a single product-oriented necessity to a comprehensive experience characterized by all-scenario, high-quality, and intelligent offerings. Against this industry backdrop, Hong Kong-listed high-end home AI technology leader BUTONG GROUP (06090) delivered an unexpectedly strong mid-term report in the first half of the year, the company achieved revenue of 810 million yuan, a year-on-year increase of 11.67%; gross profit was 406 million yuan, up 13.37%; and net profit reached 96.18 million yuan, with a staggering year-on-year growth of 98.28%, approaching a doubling of profits. However, it is worth noting that behind the nearly doubled profit figures of BUTONG GROUP lies a more pertinent question: How did the company achieve such a dramatic increase in profit with only an 11.67% growth in revenue? Where is the intrinsic value of this growth? What is the potential for future expansion? The answer does not lie in the explosive growth of a single product category, but in the interplay of two larger narratives: the deep engagement in brand ecology and user assets of "family CFOs", as well as a comprehensive onslaught of AI strategy from planning to implementation. Continuous optimization of profit structure leads to high-quality growth. From the financial report, it is evident that in the first half of the year, BUTONG GROUP demonstrated strong operational resilience and profit leap capabilities while maintaining robust double-digit growth in revenue, profits also nearly doubled, fully emerging from the prevalent industry dilemma of "growing revenue without growth in profits," entering a dual-resonance path of scale expansion and quality improvement in profits. Of course, the companys unexpectedly high profit growth is not a short-term windfall, but the result of the resonance between internal product upgrades and external cost optimizations. Firstly, the optimization of product structure has driven up the gross profit margin. During this period, the company continued to iterate its product matrix, steadily increasing the revenue share from high-value-added products, which directly pushed the gross profit margin from 49.4% in the same period last year to 50.1%, continuously optimizing profit efficiency. This change signals a fundamental message: when the products themselves are creating higher profit efficiency, the significant amplification of profit growth stems from the dual improvements in revenue structure and profit quality. Secondly, a temporary reduction in costs released profit elasticity. Costs related to IPO expenses, share-based payments, and redeemable preferred stock interest dramatically decreased year-on-year, combined with increased government subsidies and interest income, further providing positive contributions to profits. On one side is the continuous improvement in gross profit margin brought about by product structure optimization, and on the other is the release of profit elasticity due to reduced cost pressures. Together, these factors inevitably led to a concentrated release of profits in the first half of the year. However, the essence of this round of growth is not merely due to the cyclical reduction in costs, but a systemic upgrade of the profit structure with profit doubling being the first note of BUTONG GROUPs transition from "scale expansion" to "value creation." Brand ecosystem pervades, compounding effects are being realized. As is well known, the long-term barriers of any enterprise are not defined by a single hit product, but by transferable, reusable brand trust and user assets. Based on this consensus, BUTONG GROUP has built high-end mental positioning relying on its core brand BeBeBus, establishing a dual-driver strategy of "simultaneously advancing product service upgrades and innovative business expansion, as well as user value enhancement and demographic expansion," while aiming at the core consumer decision-makersfamily CFOs, and creating a full-lifecycle household consumption solution around the four major family life scenarios of mobility, sleep, feeding, and nursing. Data serves as the best criterion. As brand trust continues to migrate across categories, BUTONG GROUP has also completely broken the growth ceiling of a single category, achieving collaborative growth across multiple scenario businesses, jointly driving steady revenue expansion. In the first half of 2026, categorized by product scenarios, the companys revenue from the infant care scene was 346 million yuan, accounting for 42.7% of total revenue, maintaining its position as the largest category; revenue from the feeding scene was 111 million yuan, a year-on-year increase of 78.9%, accounting for 13.7% of total revenue, with the new infant feeding bottle series becoming a bestseller; revenue from the mobility scenario was 271 million yuan, a year-on-year growth of 5.2%, accounting for 33.5% of total revenue; and revenue from the sleep scenario was 81.7 million yuan, accounting for 10.1% of total revenue. Meanwhile, the migration of brand trust has ultimately transformed into highly sticky user assets, creating sustainable compounding value for BUTONG GROUP. According to Zheshang's research report, by the end of the first half of 2025, the company's private domain repurchase rate reached 53.3%, and revenue contribution from old customers rose from 18% in 2022 to 38%. The three million member system has built a solid brand moat. The continuous realization of private domain conversion directly evidences the foresight and effectiveness of the BeBeBus strategy, while the fast expansion of revenue from feeding and nursing categories in the first half of 2026 further confirms the growth potential of cross-category repurchase by existing users. Moreover, the continuous improvement of channel layout further solidifies BUTONG GROUP's user base and accelerates the realization of brand value. In the first half of the year, online channel revenue was 584 million yuan, accounting for 72.1%, still the main driver of growth; offline channel revenue was 227 million yuan, with its proportion increasing from 26.8% to 27.9%, steadily expanding. The increase in offline share benefited from the scaled expansion of distributors and third-party stores such as KA, combined with a closed loop of online traffic diversion and offline scenario experiences, effectively broadening the coverage of high-end family clientele and enabling the brand to reach more potential users. From this, it is clear that the underlying logic behind BUTONG GROUP's high profit growth in this round is not based on linear growth driven by a single bestseller but rather on the deep penetration of the brand ecosystem and the accumulation of user assets that lead to realized compounding benefits as brand trust circulates across scenarios and user assets appreciate through repurchases, while the companys revenue continues to expand, profits will also be released at an accelerated rate through structural optimization, achieving simultaneous volume and profit growth. Research and development strengthens barriers, AI strategy unlocks incremental ceilings. If the brand and users are the foundation of BUTONG GROUP's current growth, then the ongoing commitment to R&D innovation and AI intelligence layout is the core engine for the companys future growth. During the reporting period, BUTONG GROUP adhered to a technology-forward layout, continually increasing investment in R&D resources, establishing a comprehensive independent R&D system to provide robust support for product upgrades and innovation iterations. In the first half of 2026, the companys R&D expenditure reached 25.5 million yuan, accounting for 3.1% of total revenue; as of the end of June, the company held a cumulative total of 243 registered patents in China and 22 internationally, with technological research and development achievements continuously being transformed into tangible results, further solidifying its technological moat. On the solid foundation of R&D, BUTONG GROUPs AI intelligence strategy has fully entered the implementation phase. In the second half of 2026, the company will comprehensively promote the AI intelligence upgrades of four core categories: baby strollers, child safety seats, baby cribs, and high chairs, completing the intelligent iteration of traditional best-selling products. At the same time, the company will extend its service population beyond the existing core group of 0-3 years old to include the 3-12 year age group and all family users, continuously expanding into high-end family life scenarios. In addition, the company is continually enriching its physical AI product matrix, gradually launching new intelligent categories such as smart hair dryers, children's electric toothbrushes, smart mattresses, and smart suitcases, successfully breaking away from the traditional product track and fully entering the high-end home AI lifestyle consumption field, opening up a new growth ceiling. To match the pace of AI new product iterations and comprehensive market expansion demands, BUTONG GROUP is also continuously optimizing its intelligent manufacturing layout to realize a full-link closed loop of R&D, mass production, and delivery. On the production side, the intelligent manufacturing factory in Ningbo Fenghua will begin operations in the second half of 2026, fully creating a digital and intelligent demonstration factory, providing capacity assurance for the large-scale release of AI products. It can be seen that BUTONG GROUPs AI layout is not about searching for demand from scratch, but rather about natural extensions based on existing brands, category systems, and family consumption scenarios. This "existing users + incremental scenarios" evolutionary pathway gives the implementation of the AI strategy higher certainty and stronger monetization ability. If deepening product development is about "practicing internal skills," then a series of AI-oriented strategic collaborations represent BUTONG GROUP's move to "expand boundaries." In June 2026, BUTONG GROUP signed a strategic cooperation framework agreement with CAOCAO INC to jointly research and develop an integrated seating solution for Robotaxi cabins; in July, they partnered with Swancor Advanced Materials Co., Ltd. to lay out Siasun Robot & Automation research and high-end intelligent manufacturing. In the second half of the year, new products such as smart mattresses and smart suitcases will be gradually launched, further expanding the household intelligent matrix. From these various layouts, it is clear that BUTONG GROUP is accelerating the breaking of traditional category growth boundaries, fully opening up the incremental ceiling of high-end family AI consumption by leveraging self-researched technology as the foundation, utilizing AI intelligence as leverage, and reinforcing its position through intelligent manufacturing and strategic collaborations. The company is steadily realizing a strategic leap from a single product manufacturer to a full-scenario AI ecosystem service provider. Conclusion In summary, BUTONG GROUPs nearly doubled net profit growth in the mid-2026 report reflects comprehensive realizations of the companys operational quality, brand value, and operational capabilities. In the short term, the high-quality product matrix and the full range of user assets ensure the certainty and stability of performance growth; the increase in the proportion of high-margin products and the optimization of the cost structure enable sustained profit releases. In the medium to long term, continued investments in R&D, the comprehensive realization of AI intelligence strategy, and the newly operational smart factory are building an irreplaceable long-term barrier for the enterprise. From core category AI upgrades, to expanding the physical AI product matrix, and achieving full scenario coverage for high-end families, BUTONG GROUP is using its integrated capabilities of "brand + technology + production capacity" to draw a growth curve from family durable goods to comprehensive smart living. With the continuing validation of profit quality in the market and the gradual realization of cost reduction through technology, the company is expected to experience a dual resonance of performance growth and valuation recovery, continuously leading in the new track of high-end household intelligent consumption.