Xiamen Yan Palace Bird's Nest Industry (1497) H1 2025 earnings summary

Executive summary

• H1 revenue fell 4.22% YoY to RMB1,014.58m, while gross profit rose 2.67% to RMB527.53m and net profit increased 28.98% to RMB77.45m.

• Adjusted net profit, excluding non-cash equity-settled share-based payment expenses, rose 35.54% to RMB81.39m; higher gross margin and lower selling costs supported earnings growth.

Financial highlights

• Revenue was RMB1,014.58m, down 4.22% YoY; cost of sales declined 10.72% to RMB487.05m.

• Gross profit increased 2.67% to RMB527.53m; gross margin expanded to 51.99% from 48.50%, attributed to manufacturing upgrades and process improvements.

• Operating profit was RMB113.26m versus RMB81.54m; profit before tax was RMB110.05m versus RMB78.01m.

• Net profit attributable to equity shareholders was RMB75.26m versus RMB58.08m; basic and diluted EPS was RMB0.16 versus RMB0.12.

• Selling and distribution expenses fell 8.70% to RMB333.48m; administrative expenses rose 6.36% to RMB66.58m, mainly on higher share-based payment expense.

Outlook and guidance

• Strategy centers on deepening bird's nest value and expanding the health ecosystem through brand enhancement, product innovation and channel expansion.

• Product development will iterate core pure EBN offerings and expand EBN porridge, EBN peptide and vial formats; newer products remain in market cultivation and incubation.

• Plans include further 3.0 flagship stores, a Shanghai Member Center, county-level and KA/convenience-store coverage, and overseas expansion using Singapore as a hub.

• Supply-chain plans include a central BI platform and continued lean production to integrate production, sales and inventory information and improve cost efficiency.