Shanghai Forest Cabin Cosmetics (2657) H2 2025 earnings summary

Executive summary

• FY2025 revenue more than doubled, while profit rose strongly; launches of new SKUs and upgrades to signature products supported growth.

• Online expansion and store-network growth drove sales; strategy centers on premium positioning, a broader brand portfolio, global reach and integrated channels.

Financial highlights

• Revenue rose 102.5% YoY to RMB2,449.5m; gross profit increased 101.4% to RMB2,008.8m.

• Profit before tax grew 96.7% to RMB429.3m; net profit increased 92.9% to RMB360.4m.

• Adjusted profit, excluding listing expenses and share-based payments, increased 100.1% to RMB400.8m.

• Selling and distribution expenses rose 102.9% to RMB1,396.8m, including marketing and promotion costs up 148.7% to RMB907.8m.

• R&D costs rose 53.8% to RMB46.8m, reflecting increased product development and R&D activity.

Outlook and guidance

• Strategic priorities are premiumization, multi-brand development and measured globalization, supported by a “1 + 4 + N” product portfolio.

• Plans include strengthening offline store quality and experience while expanding online platforms, private-domain operations and science-based content.

• Product priorities include iterating the signature essence oil, building creams, essence lotions, sunscreens and masks, and adding products for new customer segments and scenarios.

• Management intends to fund future capital expenditure through operating cash flow, equity and debt financing, and global-offering proceeds.