According to the Zhitong Finance App, Taobo (06110) announced interim results for the six months ended August 31, 2026. The group obtained revenue of RMB 10.913 billion (same unit), a year-on-year decrease of 11.26%; profit attributable to the company's equity holders was RMB 663 million, a year-on-year decrease of 16.03%; earnings per share were 10.68 points, and an interim dividend of 11 points per share was proposed.
The Group insists on putting efficiency first, continuously optimizing the global layout and resource allocation, increasing the new brand matrix to expand incremental space, promoting the iteration of the capability system, and implementing AI digital intelligence applications to consolidate the quality of operation and management through lean operation. We have always used product health, variety richness, channel flexibility, and operational quality as a yardstick to measure operational success, and build long-term management capabilities through the cycle and create value based on user value accumulation and steady cash flow.
During the period, the Group's revenue fell 11.3% year on year to RMB 10.913 billion; gross margin fell 0.9 percentage points year on year to 40.1%, and the deepening discount was the main factor affecting gross margin; the Group maintained a consistent prudent approach to cost control; the sales and distribution expenses ratio remained at 29.1%, both of which were consistent with the cost ratio for the same period last year; the profit attributable to the company's equity holders decreased 16.0% year on year to 662.6 million yuan, and the profit margin attributable to equity holders decreased 0.3 percentage points to 6.1% year on year. In terms of inventory health, as of August 31, 2026, the inventory amount decreased 15.7% from August 31, 2025, 10.4% lower than February 28, 2026. The number of inventory turnover days was 146.4 days, down 3.6 days from the same period last year, and the inventory level remained within the healthy range. Steady cash flow provides the basis for long-term shareholder returns: net cash generated from the Group's operations during the period was $1,844 billion; as of August 31, 2026, the Group's bank balance and cash were $3,087.6 billion. Based on this, the Board of Directors resolved to declare an interim dividend of 11.00 points per common share for the fiscal year ended February 28, 2027, with a dividend ratio of 102.9%.
On July 21, 2026, the Group received an official notice from Nike, its main brand partner: the Group's online platform sales of Nike products in mainland China will be completely terminated on January 1, 2027. We expect this adjustment to have a significant negative impact on the Group's business, compounded by the continued downturn in the consumer environment. We expect the Group to face major business challenges for some time to come, and will continue to evaluate the relevant impacts. As Nike's largest dealer in mainland China, the cooperation between Taobo and Nike has spanned a long cycle. We will always adhere to the principles of mutual benefit, win-win situation and common growth, and strive to maintain close cooperation with Nike on offline sales arrangements.