Beauty Farm Medical and Health Industry (2373) H2 2025 earnings summary

Executive summary

• FY25 revenue rose 16.7% to RMB3.001bn; net profit increased 34.8% to RMB340.3m and adjusted net profit rose 41.0% to RMB380.8m.

• Growth combined 6.9% same-store sales growth, higher visits and membership, Naturade integration, and a larger consumer healthcare contribution.

• Operating cash flow reached RMB999.1m, while cash and cash-like items totaled RMB2.59bn at year-end.

Financial highlights

• Revenue increased 16.7% to RMB3,000.5m; gross profit rose 23.7% to RMB1,471.9m and gross margin expanded 2.8 percentage points to 49.1%.

• Operating profit increased to RMB459.5m from RMB321.8m; profit before tax was RMB450.1m and net profit was RMB340.3m.

• Adjusted net profit was RMB380.8m versus RMB270.1m; adjusted net profit margin reached 12.7%, up 2.2 percentage points YoY.

• Basic and diluted EPS rose to RMB1.38 and RMB1.37, respectively, from RMB0.99 for each measure in 2024.

Outlook and guidance

• Medium-term ambition: build 1,000 stores across 20 of China’s most economically vibrant cities, with more cities targeting revenue above RMB100m.

• Five-year priorities are Super Brand, Super Chain and Super Digitalization, combining brand-building, internal growth and acquisitions, and data/AI infrastructure.

• Naturade plans to enter the Yangtze River Delta in 2026; Siyanli integration is expected to support clinic upgrades, medical resources and growth.

• The proposed final dividend is HK$0.72 per share, up 38.5% YoY; subject to AGM approval, payment is expected by the end of Q3 2026.