Q: What is EAST BUY(01797) 2026Q2 Earnings Summary?

**Bullish Points:**

1. Revenue increased by 5.7% from RMB 2.2 billion to RMB 2.3 billion.

2. Gross profit increased by 14.5%, with the gross profit margin rising from 33.6% to 36.4%.

3. Net profit turned around from a loss of RMB 96.5 million to a profit of RMB 239.0 million.

4. Adjusted profit for the period increased significantly from a loss of RMB 1.6 million to a profit of RMB 257.6 million.

5. Adjusted EBITDA improved from a loss of RMB 68.2 million to a profit of RMB 315.2 million.

6. Selling and marketing expenses decreased by 4.3%.

7. Administrative expenses decreased by 78.6%.

8. Gearing ratio decreased to 15.5% from 17.4%.

9. Net cash generated from operating activities was RMB 278,558,000, compared to net cash used in the previous period.

10. Share-based payment expenses decreased significantly.

**Bearish Points:**

1. Income tax expenses increased to RMB 69.5 million due to higher net profit.

2. Net cash used in investing activities increased significantly to RMB 1,604,769,000, primarily due to higher purchases of financial assets.

3. Cost of sales of products increased to RMB 1,117,531,000.

4. Trade payables increased to RMB 498,233,000.

**Summary:**

EAST BUY (01797) has shown a strong financial performance for the six months ended 30 November 2025, with significant improvements in revenue, gross profit, and net profit, indicating a positive turnaround from the previous period's losses. The company has also managed to reduce its selling, marketing, and administrative expenses, contributing to a healthier financial position. However, the increase in income tax expenses and net cash used in investing activities, along with rising trade payables, present some challenges. Overall, the company's financial health appears robust, with positive cash flow from operations and a reduced gearing ratio, suggesting a stable outlook. For more information, you can read the original text of EAST BUY's financial report .