East Buy profit surges 94x to RMB544 million on GMV growth

East Buy reported FY2026 net profit of RMB544 million, a 93.8x surge from RMB6.2 million a year earlier, on revenue of RMB5.7 billion for the year ended May 31.

"The company adheres to a long-term approach, focusing on building moats," Executive President Sun Jin said on the earnings call, adding that what matters is whether the company can continue to earn user trust three years from now.

Revenue grew 29.8% year-over-year to RMB5.701 billion, with operating profit of RMB660 million swinging from a loss in the prior year. Adjusted net profit rose 262.2% to RMB174 million. Full-year GMV reached RMB10.2 billion, with self-operated products contributing RMB5.4 billion, or about 52.6% of the total. EPS came in at RMB0.52. No final dividend was declared.

The results mark a dramatic turnaround for the livestream e-commerce company after a year of streamer departures and management reshuffles. The stock opened 3.9% higher at HKD21 on Monday, with short selling at $51.31 million and a ratio of 29.6%, suggesting potential for a short squeeze if momentum continues.

Self-operated products drove growth, with GMV from that segment rising RMB1.6 billion year-over-year. The company has cumulatively launched 1,009 SKUs of self-operated products, expanding from fresh produce and snacks into health supplements, personal care, home textiles, and apparel. On the channel front, its proprietary app reached 353,000 paying members, up from 264,000 a year earlier, while offline experience stores opened in Beijing, Xi'an, and Zhengzhou.

Despite multiple streamer departures during the fiscal year, the on-air team grew from just over 20 to more than 80 people, with plans to exceed 100 in fiscal 2027. The company's self-operated products and livestream e-commerce team totaled 1,812 people as of May 31, including 1,233 full-time and 579 part-time staff. On quality control, East Buy has established a full-chain mechanism covering raw material traceability, production, and warehousing, with more than 26,000 quality inspection reports accumulated to date.

The turnaround shows that East Buy's multi-platform strategy is gaining ground even as it navigates talent churn. Investors will watch the company's offline expansion into the top ten cities by New Oriental enrollment in the second half of fiscal 2027, along with its planned AI deployment across customer service scenarios. The company also plans to implement a two-way product layout across domestic and overseas markets as part of its globalization strategy.

This article is for informational purposes only and does not constitute investment advice.