On October 9, Laiyifen held its 2026 interim results briefing, with Chairman Shi Yonglei, President Yu Ruifen and other senior executives attending to face investor questions. The interim report shows first-half revenue of 1.812 billion yuan, down 6.6% year on year; net loss attributable to the parent was 92.13 million yuan, widening 81.77% from a loss of 50.68 million yuan in the same period last year; net loss after deducting non-recurring items reached 110 million yuan, down 93.43% year on year; net cash flow from operating activities swung from a net inflow of 22.4 million yuan a year earlier to a net outflow of 82.98 million yuan, a year-on-year plunge of 470.54%. The company has now posted losses for two consecutive years, with a net loss attributable to the parent of 75.27 million yuan in 2024 and 161 million yuan in 2025. The channel structure has undergone a fundamental shift. As of June 30, 2026, the total number of stores was 2,968, a net increase of 150 from the end of 2025. Directly operated stores fell sharply from 1,044 to 318, a net reduction of 726 in the half year, while franchised stores rose from 1,774 to 2,650, lifting their share from 63% to 89%. In the first half, franchise wholesale revenue was 983 million yuan, up 36.1% year on year, with its share rising to 54.26% and becoming the largest revenue source, about 2.16 times the 455 million yuan from direct operations. However, the gross margin of the franchise business was only 11.71%, down 2.54 percentage points from 14.25% a year earlier, while the direct-operation gross margin remained above 40%. As a result, the company's overall gross margin fell to 23.66%, while selling expenses dropped 38.28% year on year over the same period. Shi Yonglei told investors that the company will optimise the profit model for individual franchise stores and deepen lean management, that the current share transfer at the shareholder level does not change corporate control, and that as of now there are no confirmed industrial synergy arrangements with Donghe Hengyi. To support the franchise system, the company relaxed its credit policy, with accounts receivable rising 51.40% year on year to 65.73 million yuan and long-term receivables surging 2,250.15% to 16.92 million yuan. Management said the financial assistance is a supporting measure during the transition period.
Shanghai Laiyifen Co LtdFirst-half revenue fell 6.6% and net loss widened 81.77% to 92.13 million yuan, with operating cash flow swinging to a net outflow.
