Bosideng International (3998) H2 25/26 earnings summary

Executive summary

• Revenue grew 5.6% year-over-year to RMB 27,350.0 million, with profit attributable to equity holders up 13.7% to RMB 3,994.4 million and operating profit up 6.6%.

• Branded down apparels led growth, offsetting declines in OEM management, ladieswear, and diversified apparels.

• Strategic focus on brand building, digital empowerment, and product innovation drove high-quality growth.

• Gross margin slightly decreased to 57.2%, and the Board proposed a final dividend of HKD25.0 cents per share.

Financial highlights

• Gross profit increased 5.5% to RMB 15,650.8 million; gross margin stable at 57.2%.

• Operating profit rose 6.6% to RMB 5,294.4 million; operating margin improved by 0.2 ppt to 19.4%.

• Net profit margin increased by 1.0 ppt to 14.6%.

• Basic EPS up 9.5% to 34.57 RMB cents; full-year dividend per share up 11.8% to 31.3 HKD cents; diluted EPS at 34.23 RMB cents.

• Maintained dividend payout ratio above 80% for five consecutive years.

Outlook and guidance

• Plans to strengthen brand-led development, expand multi-brand matrix, and drive product innovation.

• Focus on precise retail operations, channel management, and customer relationship consolidation.

• OEM business to emphasize high quality, stable growth, and low risk, with enhanced ODM capabilities and digitalized operations.

• Ladieswear to clarify brand positioning and optimize operational strategies for stable growth.

• Focus remains on down apparel and technological, functional apparel, aiming for global leadership.