Xiamen Yan Palace Bird's Nest Industry (1497) H2 2025 earnings summary

Executive summary

• FY25 revenue fell 2.41% YoY to RMB2,000.6m as high-end consumer demand slowed; gross profit rose 5.74% to RMB1,070.9m and net profit increased 19.30% to RMB191.4m.

• Production efficiency and cost optimization lifted gross margin to 53.53% from 49.40%, supporting profit growth despite softer sales.

Financial highlights

• Revenue was RMB2,000.6m vs RMB2,050.0m in 2024; cost of sales declined 10.36% to RMB929.7m, faster than revenue.

• Gross profit increased 5.74% to RMB1,070.9m; operating profit reached RMB282.0m vs RMB213.6m, and profit before tax was RMB275.7m vs RMB206.6m.

• Net profit rose 19.30% to RMB191.4m; profit attributable to equity shareholders was RMB188.6m and basic and diluted EPS were RMB0.41 vs RMB0.34.

• Selling and distribution expenses declined 1.00% to RMB664.1m; administrative expenses rose 3.29% to RMB143.9m, mainly on share-based payment costs.

• Other net income increased 49.04% to RMB58.8m, including RMB43.3m of government grants and RMB10.0m litigation compensation.

Outlook and guidance

• For 2026, priorities include brand enhancement, product innovation, channel expansion and smart manufacturing; no numerical financial guidance was stated.

• Plans include expanding new retail, key-account and overseas channels, developing Yan Yu New Tea and EBN peptide products, and using AI to accelerate R&D and improve manufacturing efficiency.

• Proposed channel initiatives include platform-specific products, further Yonghui supermarket expansion and evolving Yan Yu New Tea into an EBN product collection store.