Zibuyu Group (2420) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 34.1% YoY to RMB1,961.3m; attributable profit increased 15.9% to RMB105.9m, supported by brand building and non-Amazon channels.

• Gross margin improved, but pre-tax margin declined to 5.5% from 6.4% as freight and marketing costs rose; operating cash flow turned negative.

Financial highlights

• Revenue was RMB1,961.3m, up 34.1% YoY; gross profit rose 36.4% to RMB1,474.0m, while cost of sales increased 27.9% to RMB487.4m.

• Operating profit was RMB110.6m versus RMB97.7m; profit before tax rose 15.4% to RMB107.7m from RMB93.3m, and attributable profit was RMB105.9m versus RMB91.4m.

• Selling and distribution costs rose 40.4% to RMB1,322.2m, driven by freight and marketing; G&A expenses fell 8.5% to RMB52.9m.

• Basic and diluted EPS was RMB0.22 versus RMB0.18; diluted EPS equalled basic EPS because no potentially dilutive ordinary shares were outstanding.

• Operating activities used RMB62.3m of net cash, versus RMB130.1m generated in H1 2024; cash and equivalents were RMB347.0m at 30 June.

Outlook and guidance

• H2 priorities include strengthening the ten-brand portfolio, integrated marketing, growing non-Amazon and self-operated online sales, and developing overseas offline channels while sustaining profitability.

• Plans include expanding Southeast Asian production capacity, building an international talent pipeline, improving operational efficiency and applying AI across business processes.

• Unused Global Offering proceeds are expected to be fully deployed by 31 December 2025; timing remains subject to market and operating conditions.