China’s Ziel Home Technology (301376.SZ) released its 2026 third-quarter report on the evening of October 28. For the first three quarters, the company reported operating revenue of 7.616 billion yuan (approximately $1.1 billion), up 25.23% year-on-year; net profit attributable to shareholders of the listed company of 375 million yuan (approximately $56.4 million), up 38.14%; and basic earnings per share of 0.93 yuan.
Single-quarter performance was even more striking. In the third quarter, revenue reached 2.79 billion yuan (approximately $419.5 million), up 36.95% year-on-year; net profit attributable to shareholders was 129 million yuan (approximately $19.4 million), up 59.19%; and non-recurring net profit was 116 million yuan (approximately $17.4 million), up 83.43%.
By region, the US and Canada market — Ziel’s largest single market — saw revenue grow 43.77% year-on-year in the first three quarters, a marked acceleration from the first half. Revenue in Europe rose 31.29%, maintaining a steady trajectory. Latin America posted explosive growth, with revenue surging 164.64% year-on-year — a small base, but a fierce growth trajectory. The company completed warehouse layout in Brazil just in the first half; with last-mile delivery capacity improved, Latin America is becoming a new growth engine.
Channels are also accelerating. Revenue through Amazon rose 42.13%, while non-Amazon channels grew 28.07%. The company is gradually switching from the SC (seller-fulfilled) model to the VC (Vendor Central, direct supplier) model. Under the VC model, Amazon handles warehousing and delivery, and sellers no longer bear FBA advertising and storage fees themselves; gross margin declines because of Amazon’s cut, but the sales expense ratio also falls as advertising spending decreases.
Notably, non-recurring net profit for the first three quarters was 311 million yuan (approximately $46.8 million), up only 8.61% year-on-year, far below the 38.14% growth in net profit attributable to shareholders. The gap stems mainly from two factors: first, US tariff refunds and interest received in the first half totaling $12.6394 million; second, a base effect from the first half. The 83% high growth in third-quarter non-recurring net profit also partly reflects a low base in the same period last year.
External pressures persist. The euro and US dollar have continued to depreciate, and ocean freight rates have kept climbing. The company explicitly noted in its third-quarter report that these factors “are putting pressure on the external operating environment.” Countermeasures include: implementing quantitative cost reduction on the procurement side, locking in freight rates through long-term contracts, and achieving a compound annual decline of more than 10% in last-mile shipping costs at US local warehouses. However, the extent to which these efficiency gains can offset currency and shipping headwinds still needs to be verified by peak-season data in the fourth quarter.
From a market perspective, while Ziel Home Technology maintains high growth in its two mature markets — the US and Canada, and Europe — Latin America has begun contributing incremental revenue, meaning its cross-border home furnishings overseas expansion map is widening further. But the gap between non-recurring net profit growth and net profit attributable to shareholders growth suggests that one-off gains such as tariff refunds are a non-negligible disturbance to profit, and investors should focus more on the sustainability of the company’s core business profitability quality.
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