Boqii Announces Fiscal 2026 First Half Unaudited Financial Results

Core Viewpoint - Boqii Holding Limited reported its unaudited financial results for the first half of fiscal 2026, highlighting a significant improvement in gross margin and a substantial reduction in net loss despite challenging market conditions [1][5]. Financial Performance - Total revenues for the first half of fiscal 2026 were RMB 207.9 million (US$ 29.2 million), a decrease of 16.7% from RMB 249.7 million in the first half of fiscal 2025 [6][8]. - Gross margin increased to 25.9%, up 520 basis points from 20.7% in the first half of fiscal 2025 [6][10]. - Loss from operations was RMB 16.9 million (US$ 2.4 million), a decrease of 37.4% from RMB 27.0 million in the first half of fiscal 2025 [6][11]. - Net loss narrowed to RMB 7.4 million (US$ 1.0 million), down 75.1% from RMB 29.6 million in the first half of fiscal 2025 [6][11]. - EBITDA loss was RMB 5.6 million (US$ 0.8 million), a decrease of 77.6% from a loss of RMB 25.0 million in the first half of fiscal 2025 [6][13]. Operational Highlights - The number of SKUs for private labels increased from 3,546 in the first half of fiscal 2025 to 4,427 in the first half of fiscal 2026, with private label gross margin rising to 44.5%, an increase of 1,130 basis points from 33.2% [5]. - Fulfillment expenses decreased by 31.0% to RMB 12.9 million (US$ 1.8 million), as a percentage of revenue dropped from 7.5% to 6.2% year-over-year [7][12]. - Operating expenses were RMB 71.2 million (US$ 10.0 million), a decrease of 10.2% from RMB 79.3 million in the first half of fiscal 2025 [10]. Strategic Initiatives - The company focused on enhancing supply chain management capabilities, which contributed to improved operational efficiency and profitability [5][7]. - The strategic shift towards private label products and cost optimization measures are expected to support sustainable growth moving forward [5][7]. Cash Position - As of September 30, 2025, total cash and cash equivalents and short-term investments were RMB 30.5 million (US$ 4.3 million), down from RMB 38.7 million as of March 31, 2025 [14]. Market Context - The company faced persistently challenging market conditions and weakened consumer sentiment during the reporting period, yet managed to execute strategic initiatives effectively [5].