Mao Geping Cosmetics (1318) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2026 rose 26.2% year-over-year to RMB3,267.3 million, driven by strong growth in product sales and increased enrollment in makeup artistry training.

• Net profit increased 20.3% year-over-year to RMB806.6 million, with gross profit up 27.1% to RMB2,770.4 million and a stable gross margin of 84.8%.

• Colour cosmetics remained the largest contributor, with revenue up 38.3% to RMB1,966.7 million; skincare and fragrance also saw double-digit growth.

• Online sales channels outpaced offline, growing 33.2% year-over-year, while offline sales rose 19.9%.

• The company maintained a strong liquidity position, with cash and cash equivalents of RMB2,780.8 million and no outstanding borrowings as of 30 June 2026.

Financial highlights

• Colour cosmetics revenue: RMB1,966.7 million (+38.3% YoY); skincare: RMB1,212.2 million (+11.5% YoY); fragrance: RMB16.7 million (+46.0% YoY).

• Gross profit margin for product sales: 85.3% (vs. 84.8% prior year); net profit margin: 24.7%.

• Adjusted net profit (non-HKFRS): RMB815.2 million (+21.2% YoY).

• Earnings per share: RMB1.64 (basic and diluted), up from RMB1.37.

• Interim dividend proposed: RMB0.62 per share, totaling RMB303.9 million.

Outlook and guidance

• Plans to expand offline sales network in higher-tier cities and upscale malls, and to increase online presence through proprietary and third-party platforms.

• Focus on developing new products in colour cosmetics, skincare, and fragrance, with continued investment in R&D and overseas expansion.

• Exploring strategic investments and acquisitions to diversify the brand portfolio and enhance global competitiveness.

• Upgrading membership systems and training facilities to drive customer loyalty and professional development.