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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.
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H1 2025 earnings summary21 Aug, 2025

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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Frequently asked questions

Hengan International Group Company Limited is a China-based manufacturer and distributor of personal hygiene products. The company's product portfolio includes tissue paper, disposable diapers, sanitary napkins, and other hygiene-related items. The company is headquartered in Jinjiang, China, and its shares are listed on the Hong Kong Stock Exchange.

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