Proya Cosmetics (603605) Q2 2026 earnings summary

Executive summary

• Operating revenue for H1 2026 was RMB 5.375 billion, up 0.24% year-over-year, with net profit attributable to shareholders rising 46.26% to RMB 1.168 billion. Excluding non-recurring items, net profit declined 13.80% year-over-year to RMB 664 million.

• Gross profit margin improved to 74.32% from 73.26% in H1 2025, while net profit margin on sales increased to 22.22% from 14.56% year-over-year.

• A significant non-recurring gain of RMB 445 million was recognized from the staged acquisition and consolidation of Shenzhen FlowerKnows E-commerce Co., Ltd.

Financial highlights

• Operating revenue: RMB 5.375 billion (+0.24% YOY); main operating revenue: RMB 5.367 billion (+0.21% YOY).

• Net profit attributable to shareholders: RMB 1.168 billion (+46.26% YOY); net profit excluding non-recurring items: RMB 664 million (-13.80% YOY).

• Basic EPS: RMB 2.96 (+46.53% YOY); weighted average ROE: 17.61% (+3.26pp YOY).

• Net cash flows from operating activities: RMB 950.8 million (-26.48% YOY).

• Gross profit margin: 74.32% (up from 73.26%); sales expense ratio: 53.13% (up from 49.63%).

Outlook and guidance

• The company continues to focus on multi-brand, multi-category development, digital transformation, and international expansion.

• Emphasis on R&D, supply chain automation, and digital intelligence to drive future growth.