Zall Smart Commerce Group reports H1 2025 revenue surge despite gross profit dip

Zall Smart Commerce Group reported a substantial 33.2% increase in revenue, reaching RMB90,921.5 million for the six months ended 30 June 2025, up from RMB68,276.4 million in the prior year. This growth was primarily fueled by a 33.3% rise in supply chain management and trading business revenue, which constituted approximately 99.7% of total revenue. Despite the revenue surge, gross profit decreased by 23.8% to RMB277.3 million, and the gross profit margin narrowed from 0.5% to 0.3%.

The Group's net profit for the period saw a significant increase of 71.7% to RMB70.0 million, compared to RMB40.8 million in the same period last year. Earnings per share rose to RMB0.78. Net current liabilities improved, decreasing from RMB4,725.1 million to RMB4,173.0 million, while total interest-bearing borrowings also decreased by 7.7% to RMB13,684.8 million.

The net gearing ratio increased to 33.4% as at 30 June 2025 from 23.7% at 31 December 2024, primarily due to an increase in adjusted net debts. The Group continues to pursue strategies for liquidity management and financial position improvement.