Pou Sheng International (3813) Q2 2026 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2026 was RMB8,965 million, down 2.1% year-over-year, with gross profit margin improving by 0.4 percentage points to 33.9%.

• Operating profit rose 23.6% year-over-year to RMB348 million, with operating margin up 0.8 percentage points to 3.9%.

• Net profit attributable to owners increased 29.9% year-over-year to RMB243.7 million, with net profit margin rising to 2.7%.

• Interim and special dividends declared at HK$0.016 per share each, totaling HK$0.032 per share, a 60% payout ratio.

• Enhanced profitability driven by inventory optimisation, discount control, and restructuring synergies.

Financial highlights

• Gross profit margin improved to 33.9% in 1H 2026 from 33.5% in 1H 2025.

• Net cash from operating activities was RMB945.1 million, up from RMB399.3 million year-over-year.

• Cash and cash equivalents rose 107.7% to RMB1,330.3 million as of June 30, 2026.

• Free cash flow for 1H 2026 was RMB848.8 million.

• Capital expenditure for 1H 2026 was RMB96.3 million, down 19.3% year-over-year.

Outlook and guidance

• Focus on value-added services, quality customer experiences, and deepening strategic partnerships.

• Continued digital transformation, omni-channel integration, and investment in SAP and AI to drive sales and operational efficiency.

• Plans to expand in segmented and lower-tier markets, enhance channel mix, and accelerate digital initiatives.

• Ongoing efforts to streamline operations and enhance cost competitiveness for improved profitability.

• Sportswear market in Greater China expected to grow, supported by major sporting events and government policy.