Proya Cosmetics (603605) Q4 2025 earnings summary

Executive summary

• Operating revenue for 2025 was RMB 10.60 billion, down 1.68% year-over-year; net profit attributable to shareholders was RMB 1.50 billion, down 3.50% year-over-year.

• Gross profit margin improved to 73.26% from 71.39% last year, but higher selling expenses (49.63% of revenue) impacted net profit.

• Cash dividends for 2025 (including semi-annual and annual) totaled RMB 787.6 million, representing 52.58% of net profit.

• The company maintained a strong cash position and increased net assets by 13.68% year-over-year.

Financial highlights

• Operating revenue: RMB 10.60 billion, down 1.68% year-over-year.

• Net profit attributable to shareholders: RMB 1.50 billion, down 3.50% year-over-year.

• Gross profit margin: 73.26%, up 1.87 percentage points year-over-year.

• Net cash flows from operating activities: RMB 2.19 billion, up 98.12% year-over-year.

• Basic EPS: RMB 3.81, down from RMB 3.93 last year.

Outlook and guidance

• Strategic focus on multi-brand, multi-category portfolio and digital transformation.

• Continued investment in R&D, digitalization, and international expansion to drive long-term growth.

• Plans to strengthen core brands, expand into new categories, and enhance omni-channel presence.