From the strong mid-year results, we can see the changing growth logic of ZIBUYU (02420): the TikTok business saw a year-on-year surge of over 600%, gradually reducing its dependence on a single platform.

The rising Chinese cross-border e-commerce in footwear and apparel is rapidly reshaping the global fashion industry landscape. As the largest category in China's cross-border e-commerce exports, apparel export scale has grown from approximately 320 billion yuan in 2020 to 762 billion yuan by 2025, firmly maintaining its position at the top of cross-border e-commerce export categories. Behind this growth is a group of Chinese companies that leverage the advantages of industrial clusters and digital capabilities like AI to accurately seize the rapid rise of new emerging online channels, continuously expanding their market share globally. ZIBUYU (02420) is a notable representative among them. As August draws to a close and listed companies begin to disclose their semi-annual performance, the report card of this leading footwear and apparel brand in cross-border e-commerce has also come to light. According to the company's recently disclosed interim results for 2026, ZIBUYU achieved revenue of 2.83 billion yuan in the first half of this year, a year-on-year increase of 44.2%; the net profit attributable to parent company was 140 million yuan, up 30% year-on-year. Notably, if we exclude the impact of one-off tax payments, the actual profit growth rate would be even higher. During the same period, ZIBUYU's EBITDA stood at 190 million yuan, representing a year-on-year growth of 73.2%, further confirming the enhancement of its main business profitability. Through ZIBUYU's interim report, we can clearly see that the company's growth momentum is undergoing structural changes. The most prominent signal comes from the channel front while maintaining robust growth from a high base on the Amazon platform, the proportion of non-Amazon revenue has significantly increased, with TikTok emerging as a new growth driver, indicating that the benefits of the company's omnichannel strategy are being rapidly realized. At the same time, the effectiveness of AI-enabled support across the entire supply chain is also being systematically released. GMTEight believes that these changes collectively reveal a deeper trend: the shift in this company's growth logic is occurring faster than expected. Omnichannel breakthroughs and AI efficiency improvements resonate together. In the first half of 2026, the macro environment for the cross-border e-commerce industry remains complex. Consumer confidence in the North American market is under pressure due to inflation, yet the online retail penetration rate continues to steadily rise; AI technology is accelerating its penetration across the entire industrial chain, opening up new growth spaces for the industry. Against this backdrop, ZIBUYUs performance warrants closer examination. The most noteworthy change comes from the channel front, with ZIBUYU achieving a leap forward in its omnichannel strategy in the first half of the year. During this period, the revenue share from Amazon decreased from 92% last year to approximately 83%. While revenue from the Amazon channel still maintained a year-on-year growth rate of 29.6% and continued to expand, the non-Amazon channels achieved a substantial increase in revenue share at a rate far exceeding the overall market, rising to about 17%. This signifies that the company is no longer reliant on a single platform, but has built a multi-touchpoint sales network to reach users, thereby significantly enhancing ZIBUYU's operational risk-resilience. Dissecting the financial report data shows that the rapid growth of non-Amazon channels is primarily attributed to explosive growth in TikTok's business. In the first half of the year, ZIBUYU seized the opportunity of TikTok's platform dividend, building content e-commerce teams from the ground up across its various brand divisions, and establishing a comprehensive presence in influencer and mall operations. The AIGC video factory, which ZIBUYU relies on to achieve industrialized production of marketing content using AI technology, officially began operations in the first half of the year. Empowered by AIGC technology, the number of self-produced videos at ZIBUYU has been rising monthly, with over 50,000 videos produced in the first half of the year, achieving a production efficiency increase of over 10 times, successfully establishing a healthy sales structure of influencer + product card + self-made video. Thanks to a series of effective measures, TikTok channel revenue soared by 662.1% year-on-year to 290 million yuan, with its revenue share increasing to 10.2%. The business has transitioned from the investment phase to a new stage of scaled development, demonstrating the company's comprehensive capabilities in omnichannel development. Of course, the positive impact of AI goes far beyond content production. In the first half of the year, ZIBUYU also established the AI BP department, focused on promoting the scenario-based landing of AI in core areas such as product design, marketing operations, product management, and supply chain. For instance, in product design, AI has permeated various stages such as creative generation, trend analysis, and style iteration, freeing designers from repetitive tasks so they can concentrate on high-value decision-making. There are countless similar examples, and in terms of results, ZIBUYU's overall per capita efficiency increased by a substantial 35% compared to the same period last year, which is the most intuitive demonstration of efficiency improvements as AI transitions from being a supporting tool to empowering the entire chain. The long-term growth trajectory is becoming increasingly clear. The results in the first half of 2026 show growth across the board, which may just be a phase in ZIBUYU's deeper "structural adjustment" strategy. Thanks to the forward-looking strategic vision of the executive team and the strong execution of the entire organization, ZIBUYU has completed a systematic transformation from brand system establishment to organizational structure reshaping, accelerating the release of management dividends. Currently, ZIBUYU's brand concentration has historically risen to a high of 65%, with resource allocation shifting from being dispersed to focused; during this process, brand momentum has also been rapidly released, with the company's top ten core brands seeing year-on-year revenue growth exceeding 80%. In a still-complex external environment, the company has managed to maintain high growth rates, indicating that ZIBUYU's growth is driven more by internal adjustments and optimizations like balanced omnichannel development and AI efficiency improvements, rather than reliance on changes in the external environment. The certainty of its growth is strengthening. ZIBUYU's interim report clearly indicates that the channel dividend is the current increment being rapidly realized. The transition of TikTok from investment to scaled development marks ZIBUYU's completion of the commercial model verification from 0 to 1 in the content e-commerce space. The healthy sales structure of influencer + product card + self-made video has been successfully established, and in the second half of the year, ZIBUYU will also achieve regular live broadcasts in the U.S. and domestic platforms, further unlocking the ceiling of content e-commerce. It is anticipated that in the future, the synergistic effects between ZIBUYUs shelf-based e-commerce and content e-commerce will accelerate their emergence, and the outline of a dual-ecosystem pattern will become increasingly clear. Brand dividends represent a longer-term fruit. The transition from "products going overseas" to "brands going overseas" is a common challenge faced by Chinese cross-border e-commerce enterprises. In the first half of the year, ZIBUYU's core brands saw their overseas social media official account followers surpass 600,000, with brand concentration continuing to increase; these are merely the beginning of brand value accumulation. As brand keyword search proportions continue to rise and organic traffic becomes the norm, the value of the brand as a protective moat will truly be released. Although this path requires more time, its positive impacts will be greater in the long run, and once brand awareness is established, it represents a long-term accumulation of trust and compounding. In order to truly realize the long-term vision of a global brand, ZIBUYU has also been ramping up its investments in the supply chain, achieving over 10% in overseas production capacity during the first half of the year, with a globalization production network centered around Vietnam and Myanmar initially taking shape, laying a solid foundation for further deepening brand globalization. Looking back at ZIBUYU's interim report, I believe the core value of this financial report lies in its validation of a key judgment: ZIBUYU is evolving from relying on a single platform to becoming a fashion brand cross-border e-commerce company with balanced omnichannel development. As Amazon's share decreases to 83%, TikTok's channel takes over as the new growth driver, and the results of AI efficiency improvements emerge rapidly, it can be said that the company's growth logic has undergone a qualitative change. While the market still views ZIBUYU through past frameworks, it has solidly proven its unique position with a robust report card. For investors, this may be the best time to reevaluate the value of this company.