BUSYMING is demonstrating simultaneous gains in both its scale advantages and capital efficiency. On August 24th, the company released its unaudited interim results for fiscal 2026. During the first half of the year, BUSYMING generated revenue of RMB 44.997 billion, representing a 60% year-on-year increase, while profit for the period reached RMB 2.24 billion, surging 155.4%. Adjusted net profit climbed 136.6% to RMB 2.448 billion. The company attributes this improvement in profitability to economies of scale derived from business expansion and strengthened cost control measures.

During the first half, BUSYMING's gross margin rose from 9.3% to 11.5%, while its adjusted net margin increased from 3.6% to 5.4%. Inventory turnover days also improved, shortening by 0.5 days year-on-year to 11.2 days. Beyond the straightforward growth in revenue and profit, shifts in inventory levels and supplier settlement methods indicate that BUSYMING is converting its store footprint into higher working capital efficiency.

Currently, BUSYMING operates 66 warehouses with a combined area of approximately 1.569 million square meters, and the majority of its stores are located within 300 kilometers of the nearest distribution center. In its financial report, the company noted that some suppliers have transitioned from prepayment-based settlements to credit-based account settlements. This signals that, with its expanded purchasing scale and broader channel coverage, the company can now leverage order volume and sales certainty to replace part of the credit previously provided through advance payments. As of the end of June, the company's prepayments, deposits, and other receivables decreased to RMB 1.72 billion from RMB 1.936 billion at the end of last year, primarily due to reduced procurement prepayments. Meanwhile, trade and notes payables increased from RMB 1.177 billion to RMB 1.376 billion.

Alongside these operational efficiency improvements, BUSYMING's store expansion pace has also surpassed market expectations set at the start of the year. In the first half, the company opened 4,590 new franchise stores while closing 121, accelerating its opening tempo even as closure numbers fell below the 128 recorded in the same period last year. By the end of June, total store count reached 26,405. Management previously stated that the company does not set rigid store-opening KPIs, but added that opening 5,000 new stores in 2026 "should not be a problem." Using this as the market's prior reference point, the company had already completed approximately 92% of that target in the first half alone. On July 20th, BUSYMING's signed store count further surpassed the 30,000 milestone.

Macquarie has already raised its forecast for BUSYMING's 2026 new store openings to between 6,500 and 7,000, citing that the actual pace of expansion will exceed the market's original expectation of around 5,000. The company has yet to formally provide a new full-year store-opening guidance in its interim report. While the benefits of scale at the headquarters level are becoming evident, the next phase requires validation of whether this gross margin level is sustainable and whether headquarters efficiency can further translate into same-store sales growth and improved returns for franchisees.