Zhou Liu Fu Jewellery (6168) H2 2025 earnings summary

Executive summary

• Revenue rose 2.0% year-over-year to RMB5,834.3 million, driven by strong online sales and product mix optimization.

• Gross profit increased 8.5% to RMB1,604.3 million, with gross margin up 1.6 percentage points to 27.5%.

• Net profit grew 8.9% to RMB769.3 million, with net profit margin improvement supported by online and fixed-price product growth.

• Online sales contributed over half of total revenue, growing 29% year-over-year and delivering a net profit increase of over 70%.

• Franchise revenue declined 19% due to industry adjustments, while offline self-operated store revenue fell 5%.

Financial highlights

• Revenue: RMB5,834.3 million (+2.0% YoY); Gross profit: RMB1,604.3 million (+8.5% YoY); Net profit: RMB769.3 million (+8.9% YoY).

• Gross margin: 27.5% (+1.6ppt YoY); Net margin: 13.2%.

• EPS: RMB1.88 (basic and diluted); Weighted average shares: 410,058,785.

• Cash and cash equivalents: RMB975.5 million (up from RMB177.0 million); Interest-bearing borrowings: RMB426.3 million (down from RMB641.1 million).

• Gearing ratio: 26.4% (down from 34.9%).

Outlook and guidance

• Focus on enhancing online efficiency, improving offline quality, and upgrading products.

• Plans to expand overseas with new stores in Hong Kong, Macau, Singapore, Malaysia, and Australia.

• Continued investment in product innovation, digital tools, and franchise support.

• All remaining IPO proceeds expected to be fully utilized by December 31, 2028.