Pu'er Lancang Ancient Tea (6911) H1 2025 earnings summary

Executive summary

• H1 2025 revenue fell 38.8% YoY to RMB119.510m; owners’ attributable result swung from a RMB5.089m profit to a RMB28.946m loss.

• Weak offline demand and management-transition work weighed on results; cost controls and rapid key-account growth partly offset pressure.

Financial highlights

• Gross profit fell 50.5% to RMB61.670m; operating result swung from RMB10.707m profit to RMB10.310m loss.

• Loss before tax was RMB17.651m versus profit of RMB3.025m; net loss was RMB28.883m versus net profit of RMB4.414m.

• Selling and marketing expenses fell 38.1% to RMB48.0m; administrative expenses fell 16.9% to RMB32.0m.

• Income tax expense was RMB11.232m versus a RMB1.389m credit, mainly reflecting higher deferred tax expense.

• Net finance costs were RMB7.2m versus RMB7.7m; net impairment losses on financial assets were RMB3.3m.

Outlook and guidance

• Strategy centers on a market-oriented, customer-focused tea retailer, with adjustments to operations, management, product development and marketing; no quantified financial guidance was stated.

• Plans include developing offline distribution and direct sales, pursuing key-account and raw-tea business, and maintaining disciplined online investment amid competition.

• Long-term outlook for Pu’er tea and the Chinese tea market remained positive, supported by industry development and consumer interest in healthy lifestyles.