Loctek Semi-Annual Report: Net Profit Plunges 83.43% Due to Foreign Exchange Losses, DTC Site Revenue Grows Faster Than Third-Party Platforms

Recently, cross-border e-commerce firm Loctek Ergonomic Technology Corp. (hereinafter referred to as Loctek) released its 2026 semi-annual report. During the reporting period, Loctek generated operating revenue of 3.179 billion yuan, a slight year-on-year increase of 1.11%; net profit attributable to shareholders of the parent company stood at 21 million yuan, down 83.43% year-on-year. The sharp decline in profitability was mainly driven by foreign exchange losses. According to the report, foreign exchange losses in the first half of the year reached 77.8415 million yuan, representing a year-on-year increase of 124 million yuan in such losses. Excluding this impact, the company's core operating profit maintained positive year-on-year growth.

In the first half of the year, Loctek's business highlights were mainly reflected in the dual-engine growth of its smart home business and public overseas warehouse business. During the reporting period, the smart home business recorded revenue of 1.607 billion yuan, up 3.6% year-on-year, accounting for 50.55% of total revenue. While maintaining its leading position in height-adjustable desks, Loctek has expanded its product portfolio to cover high, mid and low price ranges. For example, the new ergonomic chair category accounted for 25% of cross-border e-commerce sales revenue in the first half of the year.

Its public overseas warehouse business posted revenue of 1.549 billion yuan, accounting for 48.71% of total revenue, showing relatively balanced development between the two core businesses. As of the end of the reporting period, Loctek owned 21 self-operated overseas warehouses globally, serving a total of 2,351 foreign trade enterprises. By optimizing last-mile delivery pricing and in-warehouse operational efficiency, Loctek achieved a 1.75 percentage point increase in gross margin. Notably, the company's first self-constructed warehouse went into operation in June, further optimizing overseas warehouse operating costs and helping it solidify its leading position in the large and bulky goods overseas warehouse sector.

Loctek currently centers its operations on its own brands, with own-brand product sales accounting for 80.42% of core operating revenue (excluding overseas warehouse revenue). Its sales channels are diversified, mainly selling through DTC independent sites and third-party e-commerce platforms, supplemented by offline channels and some ODM business.

For overseas online sales, in addition to leveraging channels such as Amazon, Wayfair and Walmart, Loctek also operates 12 independent DTC sites. Loctek's independent sites delivered strong performance in the first half of the year, with sales revenue reaching 495 million yuan, accounting for more than 40% of total cross-border e-commerce revenue and growing at a rate of 20.48%, outpacing that of third-party platforms including Amazon. However, its overseas offline distribution channel is still in the early stage of development and is currently incurring strategic losses.

It is learned that in the first half of the year, Loctek paid a premium to acquire a 32% stake in Suzhou Yisibeisi Technology Co., Ltd., a company specializing in esports ergonomic products, to expand its presence in the esports market. With a total stake of 52%, Loctek now has a controlling interest in Yisibeisi, and expects the move to help its smart home business expand from a single product category to multi-scenario ergonomic solutions in the future. In addition, its second self-constructed warehouse is scheduled to be completed in 2027, which will continue to optimize its warehouse cost structure.

This article was first published on the official website of Ebrun.