- Shua Sports’ H1 2026 net profit jumped 130.05% year-on-year to RMB 46.42 million, with revenue up 28.37% to RMB 789 million.
- Overseas expansion was the core driver: the company now serves 750+ international partners across 120+ countries, with local teams in Germany and the UK.
- Indoor fitness equipment led growth, with revenue rising 38.44% to RMB 615 million and becoming the dominant profit contributor.
- A low 2025 comparison base and disciplined selling expenses amplified the recovery, though FX losses and a 38% inventory build warrant caution.
- Shua is leveraging 2026 aging-friendly and national-fitness policies to advance its “China #1, World Top 3” 2030 globalization strategy.
Shua Sports, China’s leading scientific-sports service provider, reported a powerful first-half turnaround, with net profit attributable to shareholders surging 130.05% year-on-year to RMB 46.42 million on revenue of RMB 789 million, up 28.37%. The rebound, powered by accelerating overseas sales and a recovering domestic market, signals a decisive inflection after a weak 2025 comparative base.
Record Profit Rebound Anchored by Overseas Demand
Shua’s first-half results marked one of its strongest recoveries in recent years. Net profit excluding non-recurring items rose an even steeper 158.11% to RMB 45.29 million, while total profit climbed 122.20% to RMB 57.12 million and basic earnings per share reached RMB 0.11, up 120%. Operating cash flow improved sharply to a net outflow of RMB 15.08 million from RMB 55.93 million a year earlier.
The recovery was broad-based but led by exports. Indoor fitness equipment — the company’s core engine — generated revenue of RMB 615 million, up 38.44% year-on-year. Outdoor fitness-path products edged up 2.76% to RMB 47.0 million, while the display-rack business was the lone decliner, falling 10.09% to RMB 87.0 million.
Management attributed the profit leap primarily to sustained growth in overseas sales, which lifted gross profit by RMB 54.84 million. The comparison base also flattered the figure: in the first half of 2025, net profit had plunged 47.44% year-on-year, making the current rebound a recovery to trend rather than a one-off spike.
From “Product Export” to “Brand Export”
The overseas story sits at the heart of Shua’s transformation. As of the reporting period, the company had partnered with more than 750 international customers — adding nearly 80 new partners in the half — and its products now reach over 120 countries and regions. Crucially, Shua has moved beyond distribution to localized operations, completing dedicated teams in Germany and the United Kingdom.
The 2026 first half coincides with Shua’s 30th anniversary and the rollout of its 2030 globalization strategy, which sets the ambition of becoming “China’s #1 and a top-three global” fitness brand. The company’s credentials underpin that goal: an 11-year partnership with the Chinese Olympic Committee (2013–2028), official fitness-equipment supplier to the Beijing 2022 Winter Olympics, more than 500 patents, and participation in over 50 national and industry standards. In 2026, its E9 smart treadmill won the Red Dot Design Award, following the 2025 certification of its 88-series strength equipment as the first domestic products to pass Germany’s IGR ergonomics standard.
Riding the National Fitness and Aging-Friendly Wave
Shua’s momentum is reinforced by a favorable policy tailwind. The State Council’s National Fitness Plan (2026–2030) and a series of new standards — including the General Requirements for Aging-Friendly Fitness Equipment effective January 1, 2026, and 10 indoor fixed-equipment safety standards issued ahead of the 2026 National Fitness Day — are reshaping demand toward smarter, safer and aging-appropriate products.
The backdrop is sizable. China is the world’s largest producer and exporter of fitness equipment, with the manufacturing segment posting RMB 17.0 billion in revenue in the first half of 2026, up nearly 12% year-on-year. The aging-friendly sub-segment is among the fastest-growing: China’s elderly-fitness equipment market reached RMB 9.34 billion in 2024 (up 13.6%) and is projected to hit RMB 14.43 billion by 2029, driven by a population of more than 320 million citizens aged 60 and above. Shua is positioning its six-scenario product matrix — home, commercial, public fitness, campus, performance training and wellness — to capture both the silver-economy and AI-enabled fitness trends.
Mixed Signals: Margins, FX and Rising Inventory
Beneath the headline growth, the results carried cautionary notes. Gross margins diverged across segments: indoor equipment held at 33.12%, display racks recovered to 30.56% (up 7.28 percentage points), but outdoor fitness-path margins contracted sharply, down 14.11 percentage points to 17.68% — a reminder of pricing pressure in public-procurement channels.
Financing costs also shifted. Financial expense swung from a net gain of RMB 3.14 million a year earlier to a net cost of RMB 3.91 million, a movement of RMB 7.04 million, as exchange-rate volatility erased RMB 6.29 million of prior-year foreign-exchange gains and lower large-certificate yields cut interest income by RMB 0.91 million. Selling expense rose a disciplined 16.24% to RMB 97.7 million — below the revenue growth rate — while R&D spend was broadly flat at RMB 25.6 million (+0.52%).
Balance-sheet items warrant monitoring. Inventory rose 38.30% to RMB 372 million versus year-end, which management attributed to increased orders and capacity expansion; short-term borrowings climbed 37.71% to RMB 291 million on higher note-discount financing; and accounts receivable stood at RMB 269 million, equal to 22.75% of current assets. The board declared no interim dividend. Total assets reached RMB 1.974 billion, net assets attributable to shareholders RMB 1.218 billion, and weighted-average ROE improved 2.05 percentage points to 3.61%.
“Our 30th year is proving to be a leap year. By pairing overseas momentum with China’s national-fitness and aging-friendly policies, Shua is building a global brand — not just shipping products — and laying the foundation for our ‘China #1, World Top 3’ 2030 goal.” — Representative statement attributed to Shua Sports Chairman and CEO Zhang Weijian.
About Shua Sports
Founded in 1996 in Jinjiang, Fujian — the heart of China’s sporting-goods industry — Shua Sports Co., Ltd. (SHA: 605299) is a leading scientific-sports service provider. The company designs, manufactures and sells indoor fitness equipment, outdoor fitness-path products and display solutions under the SHUA and BANCON brands, serving home, commercial, public, campus, performance and wellness scenarios across more than 120 countries. A long-standing partner of the Chinese Olympic Committee and official fitness-equipment supplier to the Beijing 2022 Winter Olympics, Shua holds 500+ patents and has helped draft 50+ national and industry standards. shuafitness.com
