Zi Fu Yu (02420) Fa Yingxi expects mid-term net profit of about 130 million yuan to 150 million yuan, a year-on-year increase of about 23% to 42%

According to the Zhitong Finance App, Zi Wu Yu (02420) announced that the Group expects to obtain net profit of about RMB 130 million to approximately RMB 150 million (after deducting the supplementary taxes described below) for the six months ending June 30, 2026 (after deducting the supplementary taxes described below). Compared with the net profit of about RMB 105.9 million for the six months ending June 30, 2025, it is expected to increase by about 23% to 42% year on year. This is mainly the combined effect of the following events:

(1) The main channel Amazon platform business is growing steadily and rapidly. Other channels such as the TikTok platform business have grown several times, brand potential continues to be unleashed, and new products have performed brilliantly, driving a sharp rise in revenue;

(2) AI empowers the whole link to improve quality and efficiency, and refined management enhances marketing efficiency; and

(3) Iterative upgrading of the global supply chain to achieve two-way optimization of product quality and cost.

Recently, according to the tax requirements of the competent authorities in each region of the country, the Group expects to make up the 2025 corporate income tax and late payment fees (if applicable) of about RMB 12.5 million to approximately RMB 16.5 million. According to applicable accounting standards, the above supplementary tax payments are not prior accounting errors, and do not involve retroactive adjustments to prior financial data. These taxes will take into account the Group's current profit and loss for the six months ended June 30, 2026, and are expected to reduce the Group's net profit for the reporting period by approximately RMB 12.5 million to approximately RMB 16.5 million. The final accounting treatment and impact amounts are based on the results confirmed by the company's auditors. The above matters will not affect the normal operation of the company.