In recent years, Southeast Asia has experienced a profound structural consumption upgrade. The expansion of the middle class, the rise in e-commerce penetration, and the rise of young consumer groups. Multiple factors have combined to make the region an incremental market where global retail brands compete.
However, there are few Chinese companies that can actually open the entire link “from the Chinese supply chain to the end consumer in Southeast Asia”. Shenzhen Walker Extraordinary Technology Co., Ltd. (hereinafter referred to as “Walker Extraordinary”), which recently updated its Hong Kong stock prospectus, is one of the few representative players that have achieved scale effects.
Unlike most small to medium cross-border e-commerce businesses that focus on wholesale, Walker works hard on multiple dimensions such as channels and products to promote a strategic transformation from “product export” to “brand output.” The steady growth report card handed over by the company in the first half of 2026 also validates the results of this transformation.
Consolidate the basic offline market and accelerate the layout of diversified online channels
Walker is positioned as a new cross-border retail enterprise focusing on the Southeast Asian market. Relying on China's mature supply chain system, it also efficiently reaches Southeast Asian end consumers through local brand operations, warehousing and logistics networks, and tens of thousands of small and medium-sized retailers.
Currently, the Southeast Asian retail market is still dominated by large and highly scattered traditional offline channels, while emerging channels such as e-commerce are growing rapidly. In 2025, Indonesian offline retail channels will account for about 79.1% of the total retail market, of which traditional retail channels will account for 71.7%.
During the reporting period, Walker continued to consolidate the “basic market” of offline distributors. The distribution customer base has steadily expanded, and the cooperative network has been extended from 3C accessories to the field of small household appliances and home decoration and building materials. Between 2023 and 2025, the average sales volume per order increased from RMB 1,794 to RMB 1,865, and further increased to RMB 2,043 in the first half of 2026; in the first half of 2026, dealer channel revenue increased 11.1% year-on-year to RMB 451 million, and the operating efficiency of the stock channel increased steadily.
At the same time, online direct sales channels such as e-commerce and live streaming are expanding at an accelerated pace. The share of direct sales revenue rose from 17.2% in 2023 to 29.6% in 2025, and further climbed to 34.5% in the first half of 2026; the number of online stores increased from about 90 in 2023 to 159 as of June 30, 2026; the number of online direct sales orders increased from 3.438 million in 2023 to 7.647 million copies in 2025, reaching 5.629 million copies in the first half of 2026, and online transaction activity continued to grow.
From 2023 to the first half of 2026, the company cooperated with more than 60,000 small and medium-sized retailers (SMR for short) in Southeast Asia and operated 159 stores online, 71 of which were official flagship stores, covering a wide range of mainstream platforms such as Shopee, Tokopedia and TikTok. Among them, revenue from Shopee continued to rise, from 97.95 million yuan in the full year of 2023 to 127 million yuan in the first half of 2026, and the share of revenue increased from 10.8% to 18.2%.
By reducing intermediate links and controlling terminal pricing, direct sales channels have recorded higher gross profit margins, directly increasing profitability. From 2023 to the first half of 2026, the company's direct customer gross margin increased from 38.7% to 52.4%, significantly higher than the 31.7% gross profit margin of distribution channels during the same period. While improving consumer reach efficiency, promote simultaneous optimization of the company's channel structure and profit structure. As the share of direct sales revenue continues to rise, its positive contribution to overall gross margin and profitability is expected to be further unleashed.
At the same time, a more diverse omni-channel layout reduces the risk of dependency on a single channel. The company accumulates first-party user data through e-commerce flagship stores, self-operated apps, and DTC stores directly connected to consumers, strengthens connections with terminal consumers, accelerates brand asset accumulation, and gradually builds a moat at the channel level.
Increase the share of high-end private brands in rich categories such as small household appliances
If channel diversification solves the problem of “how to sell,” then diversification of categories answers the question of “what to sell.” According to Frost & Sullivan data, based on retail sales value in 2025, Walker is the No. 1 company in Indonesia in the 3C accessories field and the No. 6 Chinese cross-border company in the small household appliances sector. As the company's market share continues to grow, its brand position has further improved.
In the first half of 2026, 3C parts revenue reached 406 million yuan, accounting for 58% of total revenue, and continued to maintain a steady basic market position;
In the first half of 2026, revenue from small household appliances rose rapidly to 146 million yuan, accounting for a sharp increase of 20.9% from 12.1% in the same period last year, with a compound annual growth rate of more than 100% during the record period. At the same time, home improvement and building materials are becoming the company's third largest business segment, with revenue of 93.78 million yuan in the first half of 2026, up 56.6% year on year, accounting for 13.4% from 10.5% in the same period last year. As the revenue structure continues to be optimized, the position of small household appliances and home improvement and building materials as the second growth curve is becoming more and more clear, driving the company's overall performance to grow rapidly.
In particular, in terms of small household appliances, the customer repurchase rate and average order value increased markedly. The gross margin increased steadily from 36.8% in 2023 to 42.1% in 2025, and further reached 46.8% in the first half of 2026. Continued improvement in gross margin indicates that the sector has achieved qualitative profits and is not dependent on price reduction impulses.
In terms of its own brand matrix, the company focuses on the core consumption scenario of “home and life”, and deepens the development strategy of multiple brands and categories in response to the needs of local middle class people for high-quality, branded products. During the performance period, the company launched and upgraded a variety of small household appliances, including kitchen appliances, kitchenware, household appliances, personal care appliances, air fryers and oven appliances, cleaning appliances, and food processors.
The company has operated a number of its own brands, forming a differentiated matrix covering different consumer groups, such as the cross-border brand “ROBOT” in the 3C accessories field, the high-end brand “VIVAN”, and “SAMONO”, which focuses on small household appliances. These brands have all been highly recognized by the local Indonesian customer base, and they have all received annual honors from TOP BRAND or SUPER BRAND. In 2025, the company's own brands accounted for 93.4% of revenue, rising further to 96.6% in the first half of 2026.
From the perspective of category collaboration, 3C accessories, small household appliances, and home decoration materials together cover the diverse needs of Indonesian household consumers, and the customer acquisition cost is significantly lower than entering a new customer base across borders. In the future, the company is expected to enhance brand loyalty and gradually form a brand premium through extensive coverage of the product matrix.
Southeast Asia's regionalization layout is steadily boosting the contribution of emerging markets
The collaborative evolution of channels and categories has proven a workable health finance model in the Indonesian market. As the company expands to other markets, this successful model is expected to be quickly replicated in new markets.
According to information, up to now, Indonesia is still the company's core market. In terms of retail sales in 2025, the company ranked first in Indonesia's 3C accessories category, with a market share of about 2.2%; ranked sixth among Chinese cross-border companies in the small household appliances category, with a market share of about 3.7%. According to Frost & Sullivan, the Indonesian retail market is about US$333 billion in 2025 and is expected to grow to US$445.7 billion by 2030. The continued expansion of this market will provide a solid foundation for the company's outward expansion.
The growth of emerging markets is already beginning to be seen. The company has strategically entered Vietnam, Thailand and the Philippines. In the first half of 2026, the total revenue of these three markets increased by 40.9% year-on-year. As the above market enters the business volume stage, the company's revenue structure gradually evolved into a more diversified regional layout in Southeast Asia.
In addition to wide-coverage channels and well-known brand effects, digital capabilities are also the company's core strengths in achieving regional replication. The company's own WOOK APP has connected more than 60,000 small to medium retailers during the reporting period, which can achieve demand collection, sales monitoring and supply chain tracking, and provide stable, efficient and low-cost supply chain services for small and medium-sized retailers by integrating the entire transaction chain of supplier procurement, cross-border circulation and local delivery.
More importantly, the supply chain management, local distribution network, brand operation and digital systems that the company has accumulated in the Indonesian market are not completely tied to a single market, but have a foundation for replication in neighboring Southeast Asian countries, and have been quickly replicated in neighboring countries such as Vietnam, Thailand, and the Philippines. In the future, the company is expected to further replicate its proven digital capabilities to other new markets, forming a significant competitive barrier in the Southeast Asia region where the degree of digitalization is relatively low.
The fundamentals of performance are steady and profitability is moving steadily upward
In the first half of 2026, Walker achieved operating revenue of about 699 million yuan, an increase of 22.04% over the same period last year; adjusted net profit for the first half of 2026 was 49.069 million yuan, an increase of 45.01% year on year. The profit growth rate was significantly higher than the revenue growth rate, reflecting that with the steady expansion of the business scale, the scale effect is gradually being unleashed.
In 2023, 2024, 2025 and the first half of 2026, the company's overall gross margin was 33.6%, 35.6%, 37.1% and 38.7%, respectively, showing a continuous improvement trend, and the profit quality continued to improve.
On the cost side, between 2023 and 2025, sales expenses increased from 18.4% to 22.2%, mainly due to the company taking the initiative to increase the layout of new online channels such as live e-commerce and shelf e-commerce. Online channels such as live streaming and e-commerce in Southeast Asia were in a period of rapid development during the reporting period. From a strategic perspective, the company's current investment is a necessary cost to seize market opportunities and establish online brand awareness. The rise in online channel costs is a common problem in the industry. The key is whether the company can increase gross margin through product upgrades, price increases, etc., to transfer cost pressure. This also tests whether the company has strong enough brand power. Judging from the performance in the first half of 2026, this part of the upfront investment has begun to gradually enter the return release stage. With the rapid increase in gross margin, the adjusted net profit growth rate is already significantly faster than the revenue growth rate. The company is gradually moving from a channel and brand investment period to a period where scale effects are realized, forming a virtuous cycle where sales scale and profitability increase rapidly at the same time.
In terms of cash flow and financial security, as of December 31, 2025, the company's cash and cash equivalents were 275 million yuan, an increase of 14.98 million yuan over the previous year. The net cash inflow from operating activities in 2025 was 63.77 million yuan. Although down from 88.84 million yuan in 2024, it still maintained a healthy level of net inflow, and the operating hematopoietic capacity was stable. The decline in cash balances in the first half of 2026 was mainly due to the company's repayment of bank loans and lease liabilities, active optimization of debt structures, and professional expenses paid during the listing period. Combined with exchange rate changes, overall liquidity remained stable.
During the reporting period, the company's inventory grew rapidly. The main reason was that sales of new categories such as small household appliances and home improvement and building materials grew rapidly, and the company made strategic preparations to meet the increase in market demand; at the same time, these categories required a longer turnaround time compared to 3C accessories, which objectively boosted the overall inventory level.
Affected by fluctuations in the Indonesian rupiah exchange rate, the company recorded exchange earnings of 6.076 million yuan in 2023, and a loss of 17.923 million yuan in the first half of 2026. Although the exchange rate depreciation had a certain impact on revenue and net profit, as mentioned above, the company's revenue and net profit in the first half of '26 still showed a steady increase. This aspect shows that the slowdown in 3C parts revenue growth was mainly due to exchange rate effects. On the other hand, it also reflected the company's operational resilience and profitability. Fluctuations in financial expenses and increased exchange losses during the current period are common industry problems caused by phased fluctuations in global multi-currency exchange rates and increased two-way fluctuations in RMB. They are not deterioration in corporate channels, products, and profitability. Furthermore, in an environment where the Indonesian rupiah exchange rate declined markedly, the growth rate of the company's revenue, gross profit margin, and adjusted net profit continued to accelerate markedly in the first half of 2026, indicating that the company's core business is resilient enough. As a new cross-border retail company with Indonesia as its main market, exchange rate fluctuations are a normal operating risk. To this end, the company has taken the initiative to adopt hedging methods such as forward foreign exchange transactions, and is actively using the bilateral local currency settlement framework between China and Indonesia. Furthermore, the company has accelerated the implementation of a localized supply chain strategy in the small household appliances and home furnishings and building materials sector, increasing the share of local procurement and settlement in Indonesia, achieving currency matching between overseas revenue and procurement costs, and continuing to reduce net foreign exchange exposure. The implementation of the above measures can achieve manageable exchange risk over a long period of time, and will not have a continuous negative impact on long-term business performance.
During the reporting period, the company's overall solvency showed a continuous improvement trend. From the end of 2023 to the end of June 2026, after excluding the impact of redeemable preferred stock financial liabilities, the current ratio increased from 1.55 to 2.45, the balance ratio decreased from 68.3% to 44.5%, working capital increased from 168 million yuan to 357 million yuan, and the debt structure was clearly optimized. The company maintains a certain reserve of monetary capital to provide basic guarantees for daily operations and debt repayment. Financial liabilities formed from historical financing of preferential stocks can be redeemed. After the IPO is completed, this portion of the debt will be reclassified as equity. Changes in fair value will no longer affect the company's net profit, which will further reduce the pressure on the company's debt, and the income statement will also better reflect the company's actual operating results. Subsequent companies can use capital raised from IPOs to enhance capital strength, strengthen liquidity safety pads, continuously improve operating cash flow levels, and support long-term steady business development.
Summarize
Behind the increase in performance, Walker is undergoing a multi-dimensional systematic upgrade: the channel is rapidly developing from offline to offline+online bipolar development, the category is expanding from 3C to small household appliances and home decoration materials, and regionally expanding from Indonesia to Vietnam, Thailand and the Philippines. This all-round evolution is also continuously optimizing the company's financial model and transforming it into a sustainable endogenous growth engine.
From a longer-term perspective, the company has formed a comprehensive competitive barrier of “brand+digitalization+supply chain”. As the “Indonesian model” is gradually replicated and implemented in new markets such as Vietnam, Thailand, and the Philippines, Walker is expected to achieve a value leap from a leading local segment in Indonesia to a leading regional company in Southeast Asia. After the IPO in Hong Kong, Walker's extraordinary ability to expand regionally and continuously grow in multiple categories will also become an important dimension for the market to observe its long-term value.