Eternal Beauty Holdings (6883) H2 25/26 earnings summary

Executive summary

• FY2026 revenue rose 3.3% YoY to RMB2,152.2 million; operating profit increased 9.9% to RMB294.7 million and profit for the year rose 7.2% to RMB243.4 million.

• Strategic positioning shifted from product distribution and channel operations toward an “Art of Living Brand Partner,” with profit before scale guiding operations.

• External brand portfolio covered 76 brands at 31 March 2026, including 56 perfume, 24 home fragrance and 16 skincare brands; categories overlap.

Financial highlights

• Revenue was RMB2,152.2 million, up 3.3% YoY; operating profit was RMB294.7 million, up 9.9% YoY.

• Profit for the year reached RMB243.4 million, up 7.2% YoY; overall gross profit margin was 47.0% and net profit margin was 11.3%.

• Non-perfume revenue, including service fees, grew 17.0% YoY and reached 21.5% of revenue; skincare revenue rose 44.2% to RMB219.1 million.

• Service and management fee income increased 210.5% YoY, reflecting expansion of brand-service capabilities and the asset-light model.

Outlook and guidance

• Strategy prioritizes fragrance while extending into home fragrance, functional skincare and eyewear to broaden the Art of Living ecosystem.

• Perfume Box will expand its direct-operated network using localized, store-specific strategies; Santa Monica plans seasonal limited editions and cross-sector collaborations.

• Plans include introducing or investing in differentiated, high-margin niche fragrance and premium skincare brands; AromeManpo investment was completed after FY2026.

• Omni-channel plans include social content across Mainland China, Hong Kong and Macau, AI-supported content and consumer insights, and gradual integration of member assets subject to compliance and user authorization.

• Resources will focus on premium niche fragrances and multi-category channel development, leveraging a network of more than 7,400 online and offline points of sale.