Proya Cosmetics (603605) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was RMB 2.31 billion, down 2.29% year-over-year from Q1 2025.

• Net profit attributable to shareholders was RMB 366.7 million, a decrease of 6.05% year-over-year.

• Operating cash flow dropped sharply by 84.16% year-over-year, mainly due to reduced collections and increased promotional expenses.

Financial highlights

• Total assets at quarter-end were RMB 8.91 billion, up 5.00% from year-end 2025.

• Shareholders’ equity increased 4.32% to RMB 6.41 billion compared to year-end 2025.

• Basic and diluted EPS were both RMB 0.93, down from RMB 0.99 in Q1 2025.

• Gross margin decreased as cost of sales rose to RMB 587.3 million from RMB 642.3 million year-over-year.

Key financial ratios and metrics

• Gross margin declined as cost of sales increased relative to revenue.

• Return on equity (ROE) was 5.78%, down 1.19 percentage points year-over-year.

• Net profit margin decreased due to higher expenses and lower revenue.