Xinhua Winshare Publishing and Media Company (811) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was RMB5,527 million, down 4.50% year-over-year, mainly due to declines in textbooks, supplementary materials, education informatization, and equipment businesses.

• Net profit reached RMB900 million, up 19.63% year-over-year, with net profit attributable to shareholders at RMB857 million, up 19.66%.

• Gross profit margin improved to 39.05%, up 0.59 percentage points year-over-year, driven by changes in sales structure and cost control.

• Earnings per share increased 18.97% to RMB0.69.

• The Board proposed an interim dividend of RMB0.19 per share, totaling RMB234 million, subject to EGM approval.

Financial highlights

• Operating costs decreased by 5.42% to RMB3,369 million, reflecting lower sales volume.

• Selling expenses fell 2.34% to RMB699 million; administrative expenses remained stable at RMB749 million.

• Research and development expenses rose 50.68% to RMB14.1 million, reflecting increased investment in business management systems and technology.

• Net cash inflow from operating activities was RMB621 million, up 63.42% year-over-year, mainly due to tax refunds and lower tax expenses.

• Gearing ratio decreased to 33.89% from 34.46% at year-end 2024.

Outlook and guidance

• Plans to enhance content creation, education services, and reading service systems, with a focus on digital transformation and integration of AI.

• Continued investment in logistics and supply chain digitalization to improve efficiency and resilience.

• Strategic capital allocation to diversify investment risks and support high-quality development.