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Hengan International Group (1044) investor relations material
Hengan International Group H1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Revenue for the first half of 2025 was RMB11.81 billion, down 0.2% year-over-year, reflecting stable performance amid intense competition and market consolidation.
Gross profit margin declined to 32.3% from 33.3% due to lower hygiene product sales, higher promotional expenses, and increased raw material costs.
Operating profit fell 7.3% to RMB1.76 billion, and profit attributable to shareholders decreased 2.6% to RMB1.37 billion.
E-commerce and new retail sales grew 7.9% year-over-year, now accounting for 34.4% of total revenue.
Interim dividend maintained at RMB0.70 per share.
Financial highlights
Total revenue was RMB11.81 billion, down 0.2% year-over-year; core business revenue fell 3.1%.
Gross profit decreased 3.2% to RMB3.81 billion; gross margin at 32.3%.
Operating profit dropped 7.3% to RMB1.76 billion.
Profit attributable to shareholders was RMB1.37 billion, down 2.6% year-over-year.
Basic and diluted EPS both at RMB1.206, down 2.3% year-over-year.
Outlook and guidance
Revenue expected to remain stable in 2H2025, supported by tissue paper sales and omni-channel strategies.
Gross profit margin anticipated to improve with stable raw material prices and increased premium product sales.
Focus on expanding premium product share, omni-channel sales, and digital transformation.
Ongoing capacity expansion projects in Fujian, Chongqing, and Hubei to support future growth.
Market competition, especially in hygiene products, expected to remain intense.
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