Carote (2549) H2 2025 earnings summary

Executive summary

• Achieved total revenue of RMB2,156.7 million for 2025, up 4.0% year-over-year, driven by branded business growth and channel expansion.

• Branded business revenue rose 8.6% to RMB2,021.1 million, now 93.7% of total revenue, with strong US market performance.

• Net profit declined 27.6% to RMB257.8 million, with net margin dropping to 12.0% from 17.2% due to higher costs and tariffs.

• Gross profit margin for branded business fell from 43.5% to 33.1%, mainly due to US tariff escalation.

• Continued omnichannel expansion, especially in the US and China, and broadened product categories and materials.

Financial highlights

• Total revenue: RMB2,156.7 million (up 4.0% year-over-year).

• Gross profit: RMB685.4 million (down 18.0% year-over-year); gross margin: 31.8%.

• Net profit: RMB257.8 million (down 27.6% year-over-year); EPS: RMB0.47 (down from RMB0.81).

• Branded business revenue: RMB2,021.1 million (up 8.6%); ODM revenue: RMB135.6 million (down 36.2%).

• US branded business revenue: RMB1,472.0 million (up 17.7%), now 72.8% of branded revenue.

Outlook and guidance

• 2026 expected to be challenging due to global economic uncertainties, trade protectionism, and geopolitical tensions.

• Strategic focus on quality, omnichannel expansion, organizational optimization, talent development, and supply chain efficiency.

• Confident in sustainable growth and value creation through innovation and operational resilience.