Man Wah Holdings (1999) H2 2025 earnings summary

Executive summary

• Revenue for FY2025 was HK$16,902.6 million, down 8.2% year-over-year, mainly due to weak domestic demand and intensified competition in the PRC market.

• Gross profit margin improved to 40.5% from 39.4% last year, reflecting better cost control despite lower sales.

• Profit attributable to owners was HK$2,062.6 million, a decrease of 10.4% year-over-year, impacted by fair value losses and asset impairments.

• Excluding non-recurring losses, adjusted profit attributable to owners was HK$2,350 million, up 1.3% year-over-year.

• Overseas markets, especially North America and Europe, showed growth, offsetting some domestic weakness.

Financial highlights

• Revenue: HK$16,902.6 million (down 8.2% year-over-year).

• Gross profit: HK$6,844.2 million; gross margin: 40.5% (up from 39.4%).

• Net profit attributable to owners: HK$2,062.6 million (down 10.4%).

• Basic and diluted EPS: HK53.19 cents (down from HK59.09 cents).

• Final dividend proposed: HK12 cents per share; total dividends for FY2025: HK27 cents per share (50.8% payout ratio).

Outlook and guidance

• Domestic market recovery is expected to be gradual, with government policies supporting demand.

• Focus on expanding offline and online channels, product innovation, and leveraging policy incentives.

• Overseas expansion to continue, targeting North America, Europe, and emerging markets.

• Confident in maintaining industry-leading profitability through operational efficiency and brand strength.