FOREST CABIN (02657) reported a revenue increase of over 40% in the first half of 2026: enhancing shareholder returns and breaking the reliance on single products to solidify growth.

On August 31, "the first stock of high-end domestic skincare," FOREST CABIN (02657), announced its mid-term performance for 2026. In the first half of the year, the company achieved operating revenue of 1.5 billion yuan, a year-on-year increase of 42.6%; adjusted net profit of 285 million yuan, a 42.1% increase compared to the previous year; and a gross profit margin of 81.6%, with core operational indicators continuing the steady growth trend seen since its listing. During the earnings conference, Sun Laichun, the founder, chairman of the board, and CEO of FOREST CABIN, stated that the company would steadily implement its long-term brand strategy to solidify its market position through premiumization, explore niche markets with multi-brand deployment, and expand global growth opportunities, balancing short-term operations with long-term brand value to achieve high-quality sustainable growth. The product structure continues to optimize, opening growth opportunities across all channels. The underlying driver of revenue growth comes from the bidirectional synergy between products and channels. Relying on a "1+4+N" pyramid product layout, FOREST CABIN not only maintains the foundational base of its flagship products but also continuously expands into new categories to cover a larger audience and more skincare scenarios. As a core pillar of the brand, as of June this year, cumulative sales of Camellia oil anti-wrinkle repair essence have exceeded 70 million bottles, ranking first in national retail sales of facial essence oils for 12 consecutive years. Meanwhile, in the first half of the year, the revenue contribution rate of the essence oil category declined from 45.5% in 2025 H1 to 34.3%, gradually easing the dependence on a single bestseller. The sixth generation of Camellia anti-wrinkle essence oil has officially launched, further solidifying its competitive position in the essence oil sector. In addition to essence oil, the company's second growth curve has become clear. Since its launch in 2025, the "Little Gold Pearl" essence water has consistently gained traction, ranking No. 1 on Douyin's toner leaderboard during the first six months and the 618 shopping festival. In May of this year, the brand introduced a new whitening essence oil, officially entering the trillion-level whitening skincare market. This new product ranked among the top three in the platforms whitening category during live testing, injecting new momentum into future growth. At the channel level, the synergistic effects of FOREST CABIN's cooperation with Wuxi Online Offline Communication Information Technology Co., Ltd. continue to be unleashed. Offline, the brand continues to deepen its presence in high-end shopping center channels, with offline channel revenue increasing by approximately 23% compared to the same period last year. By the end of the reporting period, the company had 638 stores nationwide, with 410 of them company-owned, continuously reinforcing the brand's high-end positioning. Online, each major platform is blooming, with total GMV across all channels increasing by over 100% during the 618 shopping festival. Douyin, Tmall, JD.com, WeChat, and other major platforms all saw significant growth. The brand topped the categories for facial essence oils and toners on Douyin, further solidifying its competitive advantage in the high-end domestic skincare market. As of the first half of 2026, the brand's number of active customers reached 7.3 million, with a repurchase rate maintained at about 32.5%, significantly higher than the industry average, ensuring a solid user base. Enhancing R&D innovation and transforming technical achievements to strengthen competitive barriers. Behind the steady upward performance is FOREST CABIN's continued high investment in R&D. In the first half of 2026, FOREST CABIN's R&D expenditure reached 34 million yuan, an increase of 88.8%, with growth significantly outpacing revenue growth. By the end of the first half, FOREST CABIN had obtained a total of 103 patents, including 49 invention patents related to core ingredients, techniques, or Camellia formulas, covering patented ingredients such as Qingxuan extract and Camellia black 677. Since the beginning of this year, the company has achieved several breakthrough advancements in raw materials. In March, two independently developed new raw materials, "Zhejiang Red Camellia Extract" and "Zhejiang Red Tea Extract," were officially recorded, bringing the total of self-developed Zhejiang red tea flower-based cosmetic raw materials to five, continuously expanding the self-developed raw material matrix. Additionally, the Zhejiang Red Camellia Multi-Dimensional High-Value Utilization Technology and Industrial Application project led by the company won the first prize in the Science and Technology Progress Award from the China Business Federation, receiving industry-wide recognition for its integration of production, education, and research. In terms of transforming technical achievements, in April, the company officially launched a platform technology refined over four yearsMicrofluidic Oil Lock Fresh Technologyalong with three new ingredients: Camellia oil capsules, red tea flower peptides, and dual PDRN (self-developed red tea flower PDRN + salmon PDRN). The company also took the lead in formulating and releasing the group standard "Technical Specifications for Oil-Based Essence Waters, promoting the industrys transition from marketing-driven to a dual-drive model of technology + standard. The company is simultaneously laying out related patents for PDRN penetration technology and participating in drafting the first national group standard focusing on PDRN ingredients. In terms of building the research system, in the first half of 2026, the company collaborated with national and industry authorities, industry associations, and leading enterprises to develop and issue 13 national standards, industry standards, and group standards covering core areas such as raw material standards, product standards, efficacy evaluation methods, testing methods, and technical specifications. In the second half of the year, FOREST CABIN's R&D investments will continue to increase. The companys collaborative root-level cellular anti-wrinkle research platform with Shanghai Jiao Tong University has been officially inaugurated, and it has been awarded IFSCC Gold Partner status. It has also jointly published the first domestic blue paper focusing on "Root-Level Cellular Anti-Wrinkle Skincare, fully outputting core research results and achieving a leap in comprehensive research capabilities. Dividends and buybacks are both underway! The three-year shareholder return plan is anchored in long-term value. While delivering solid performance, FOREST CABIN also disclosed its mid-term dividend plan. The announcement indicates that the company intends to distribute an interim dividend of 1.32 yuan per share, with a total cash dividend expected to reach 185 million yuan. Combined with the approximately 135 million yuan of dividends already distributed for the 2025 fiscal year, the total dividends distributed since the company's listing will amount to 320 million yuan. In addition, the company initiated a share buyback plan in early July, having repurchased a total of 1,899,200 shares to date, with a repurchase amount of approximately 94.93 million Hong Kong dollars. At the same time, the company officially launched its three-year dividend plan (2026-2028) to further solidify the valuation basis in the capital market with clear and stable dividend expectations. The plan specifies that from 2026 to 2028, the total cash dividends each year will account for no less than 50% of the net profit attributable to the parent companys shareholders. Speaking of future development, FOREST CABIN stated at the earnings conference that the company will continue to adhere to its core business in high-end cosmetics, maintain the development lines of premiumization, multi-brand strategies, and globalization, leveraging product innovation, in-depth channel development, brand upgrading, and organizational efficiency as its key strategies, and return the trust and support of investors through stable operations and high-quality development.