Key Highlights

● Fiscal 2026 revenue fell 10.3% to RMB420.5 million.

● Net loss narrowed to RMB5.6 million from RMB55.0 million.

● Gross profit rose to RMB110.4 million, lifting gross margin to about 26%.

● Private-label gross margin reached 44.5% in the first half.

Boqii Holding Ltd (NYSE American:BQ) filed its annual report for the year ended March 31, 2026 on July 13, 2026, and the Shanghai-based pet products retailer reported a much smaller net loss even as sales fell. The shares are quoted on NYSE American, not the main NYSE board.

Boqii runs Boqii Mall and Boqii Community, selling pet food, toys, apparel and over-the-counter veterinary products to Chinese pet owners, alongside a growing range of its own-brand goods. Its fiscal year ends on March 31, so the latest annual period covers April 2025 to March 2026. Headcount is small, at 96 employees.

What the figures show

Fiscal 2026 revenue was RMB420.5 million (about US$59 million at the rate used in the company's January release), down 10.3% from RMB468.9 million a year earlier. Gross profit rose to RMB110.4 million from RMB100.7 million, which implies a gross margin of about 26% against roughly 21%. Net loss narrowed to RMB5.6 million from RMB55.0 million.

The direction matches the interim report. For the six months ended September 30, 2025, Boqii reported revenue of RMB207.9 million (US$29.2 million), down 16.7%, with gross margin up 520 basis points to 25.9%. Net loss narrowed 75.1% to RMB7.4 million (US$1.0 million). Operating expenses fell 10.2% to RMB71.2 million. Chief executive Hao Liang said the business was demonstrating strong resilience in challenging market conditions.

How the business is changing

Management has leaned on private-label products, where the company reported a gross margin of 44.5% in the first half, up from 33.2%, and 4,427 own-brand stock-keeping units, up from 3,546. Sales through third-party e-commerce platforms fell 26.6% to RMB88.2 million, while Boqii Mall sales fell 11.5% to RMB99.6 million. Online marketing and information services revenue rose 18.2% to RMB20.1 million.

The group also deconsolidated Nanjing Xingmu, recording a RMB41.9 million disposal receivable, and agreed a repurchase of a 14.5% stake expected to bring in RMB12.5 million, with the final payment due by February 28, 2026.

Funding and trading concerns

The balance sheet is thin. Fulfillment expenses fell 31.0% to RMB12.9 million in the half-year, and general and administrative costs fell 23.2%. Cash and short-term investments were RMB30.5 million (US$4.3 million) at September 30, 2025, down from RMB38.7 million at March 31, 2025. On November 3, 2025 Boqii announced a registered direct offering that closed on November 4, raising about US$4.2 million by selling 1.5 million Class A shares at US$2.80 each, with Univest Securities as placement agent.

On April 13, 2026, in announcing its annual meeting, the company said it might pursue further funding, including possible equity issuance. Trading has been volatile: the company responded to unusual trading on October 30 to 31, 2025 and again on June 10, 2026, saying it knew of no undisclosed material developments.

Private Labels and Funding Needs

Boqii's fiscal 2026 showed a narrower loss on lower sales: revenue of RMB420.5 million fell 10.3%, gross profit rose to RMB110.4 million and the net loss shrank to RMB5.6 million from RMB55.0 million. In the first half, private-label gross margin reached 44.5% and own-brand stock-keeping units rose to 4,427, while sales through third-party e-commerce platforms fell 26.6%.

Funding and platform sales are the main issues going forward. The company raised about US$4.2 million in a registered direct offering on November 4, 2025 and said on April 13, 2026 that it might pursue further funding, including possible equity issuance. Further equity raising, any exchange compliance notices and whether private-label growth can offset weaker platform sales are the points to follow, alongside the full 20-F for audited cash and going-concern detail.