Cross-Border E-Commerce Leader Aukey Reports 28.77% Revenue Growth in H1, But Profit Plunges 62.07%

Recently, Aukey (Shenzhen) Cross-Border Commerce Co., Ltd. (hereinafter referred to as "Aukey") released its mid-2026 financial results. According to the announcement, the company's first-half revenue reached 7.221 billion yuan, up 28.77% year-on-year, while profit attributable to owners of the parent company dropped sharply to 41 million yuan, a 62.07% year-on-year decrease. However, the profit performance was broadly in line with expectations: Aukey had previously estimated that its first-half net profit would decline by between 56.3% and 74.8% compared to the same period in 2025.

Per the earnings report, the profit decline was primarily driven by three factors: losses from the self-fulfillment business, underutilized production capacity, and foreign exchange losses caused by currency fluctuations.

By business segment, Aukey's revenue comes mainly from two sources: product sales and logistics solutions. Product sales accounted for 66.5% of total revenue, with furniture, home goods and home appliances as the core categories, generating 3.972 billion yuan in revenue in the first half and contributing more than half of the company's total revenue. Beyond its core categories, Aukey is also expanding into non-furniture, non-home appliance products represented by power tools, a segment that delivered steady revenue growth, rising 28.2% year-on-year in the first half.

The logistics solutions business posted strong performance, with revenue growing at a rapid 43.7% clip to 2.421 billion yuan during the reporting period, lifting its share of total revenue to 33.5%. However, gross margin for this segment declined, dropping from 10.2% in the same period last year to 7.6%. The announcement attributed the drop to the negative gross margin of the self-fulfillment business creating a structural drag on overall gross margin.

Within the product sales business, Aukey is advancing the diversification of its channel and market structure. Specifically, third-party e-commerce platforms remain the primary sales channel, accounting for 93.40% of product sales revenue. In addition, the announcement noted that revenue from emerging third-party platforms rose 82.2% year-on-year, with TikTok standing out as a top performer; these emerging platforms have helped optimize the overall channel structure. But sales expenses have risen in tandem, with 1.282 billion yuan spent primarily on business promotion fees and platform transaction fees.

In terms of markets, North America remains Aukey's core market, contributing a stable revenue base with 17.1% year-on-year growth. In terms of revenue growth rate, Europe led the way, posting a rapid 65.2% increase during the reporting period. The domestic market also grew quickly, contributing 2.318 billion yuan in revenue, marking certain progress in the company's diversified market expansion.

AI technology empowerment was mentioned multiple times in the announcement. Aukey has established a dedicated AI team to systematically roll out artificial intelligence applications across scenarios including demand forecasting and product design, in a bid to improve collaborative efficiency across all links and reduce operating costs. In addition, Aukey will continue to increase investment in infrastructure such as overseas warehouses in the future to provide logistics support for business growth.

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