EEKA Fashion Holdings (3709) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 decreased by 6.12% year-over-year to RMB3,104.02 million, mainly due to lower sales in self-operated retail stores and distributor channels.

• Net profit increased by 2.17% year-over-year to RMB288.99 million, with net profit margin rising from 8.55% to 9.31%.

• E-commerce revenue grew by 8.88%, offsetting some declines in offline channels.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit decreased by 5.98% to RMB2,371.69 million, but gross margin slightly improved to 76.41%.

• Operating expenses fell by 9.28% to RMB2,061.43 million, driven by lower selling, distribution, and administrative costs.

• Net cash inflow from operating activities nearly doubled to RMB895.86 million.

• Basic earnings per share rose to RMB0.43 from RMB0.41 year-over-year.

Outlook and guidance

• The company plans further reforms in brand promotion, product operations, supply chain, and online channels in the second half of 2025.

• Focus will be on enhancing brand strength, content monetization, and efficiency improvements.

• Management expects mid- to high-end women's apparel consumption to stabilize as macroeconomic policies stimulate demand.