Butong (6090) H2 2025 earnings summary

Executive summary

• Revenue grew 15.8% year-over-year to RMB1,445.8 million, with profit for the year up 11.4% to RMB65.2 million.

• Adjusted net profit (non-HKFRS) rose 22.3% to RMB135.6 million, reflecting strong operational performance.

• The business executed a dual-engine strategy: product/service upgrades and innovative business expansion, with a focus on user-centric R&D and digital transformation.

• Online sales accounted for 72.9% of revenue, with significant growth in both online and offline channels.

• No dividend declared for 2025; significant cash inflow from IPO proceeds.

Financial highlights

• Gross profit increased 13.8% to RMB715.8 million; gross margin slightly decreased to 49.5% due to product mix shift.

• EBITDA (non-HKFRS) was RMB163.0 million, nearly flat year-over-year; adjusted EBITDA rose 12.3% to RMB215.0 million.

• Cost of sales rose 17.8% to RMB730.1 million, in line with revenue growth.

• Other income and net gain surged 92.9% to RMB39.3 million, mainly from higher government grants and interest income.

• Selling and distribution expenses increased 17.0% to RMB457.5 million; administrative expenses up 36.5% to RMB124.9 million, mainly due to higher share-based payments and listing expenses.

• R&D expenses rose 18.8% to RMB25.4 million, representing 1.8% of revenue.

• Effective tax rate decreased to 48.8% from 49.9%.

Outlook and guidance

• 2026 strategy centers on AI-driven product upgrades and global expansion, with a new digitalized factory to open in Ningbo.

• Focus on developing AI-intelligent products for domestic and overseas markets, and establishing localized operations abroad.

• IPO proceeds will fund production, overseas expansion, branding, R&D, and working capital.