Oppein Home Group (603833) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was ¥17.23 billion, down 8.94% year-over-year; net profit attributable to shareholders was ¥2.00 billion, down 23.18% year-over-year.

• Gross margin increased to 36.24%, up 0.33 percentage points; net margin was 11.59%, down 2.15 percentage points year-over-year.

• Cash flow from operations was ¥3.40 billion, down 38.23% year-over-year, mainly due to reduced cash from sales and services.

• The company maintained its leading market position in the custom home furnishing industry, with over 7,000 domestic stores and a strong multi-brand strategy.

• The board proposed a cash dividend of ¥1.237 per share (pre-tax), totaling ¥749 million, with a full-year payout ratio of 75.14% of net profit.

Financial highlights

• Operating income: ¥17.23 billion, down 8.94% year-over-year.

• Net profit attributable to shareholders: ¥2.00 billion, down 23.18% year-over-year.

• Operating cash flow: ¥3.40 billion, down 38.23% year-over-year.

• Basic EPS: ¥3.30, down 23.08% year-over-year; diluted EPS: ¥3.20, down 24.35%.

• Gross margin: 36.24%, up 0.33 percentage points; net margin: 11.59%.

• R&D investment: ¥909 million, 5.27% of revenue, with 1,867 R&D staff (10.44% of total employees).

Outlook and guidance

• The company expects continued industry headwinds in 2026 but will focus on internal efficiency, digital transformation, and multi-channel growth.

• Strategic priorities include deepening the “big home” model, digital and AI-driven upgrades, and platform-based organizational reforms.

• Dividend policy remains stable, with a high payout ratio to reward shareholders.