Mao Geping Cosmetics (1318) H2 2025 earnings summary

Executive summary

• Achieved record revenue of RMB5,050.5 million in 2025, up 30.0% year-over-year, with net profit rising 36.8% to RMB1,205.4 million.

• Expanded product portfolio to 469 SKUs across color cosmetics, skincare, and fragrance, and launched new high-end perfume series.

• Opened flagship stores and counters in premium locations, including the first Hong Kong counter, marking international expansion.

• Enrolled 6,591 students in makeup artistry training, with 10 institutes nationwide and new industry-education collaborations.

• Enhanced ESG initiatives, including significant donations and expanded community engagement.

Financial highlights

• Revenue increased 30.0% to RMB5,050.5 million; net profit up 36.8% to RMB1,205.4 million year-over-year.

• Gross profit margin remained high at 84.2%; adjusted profit for the year (non-HKFRS) reached RMB1,209.1 million.

• Online sales accounted for 50.5% of product revenue, growing 38.8% to RMB2,477.1 million.

• Cash and cash equivalents at year-end were RMB2,437.5 million; no bank borrowings outstanding.

• Proposed final dividend of RMB1.00 per share, totaling RMB490 million.

Outlook and guidance

• Plans to expand offline and online sales networks, upgrade department store counters, and enhance brand presence in high-tier cities.

• Focus on developing new products in color cosmetics, skincare, and fragrance, and exploring new categories.

• Strategic overseas expansion with localized teams and partnerships in Europe, America, and Asia-Pacific.

• Ongoing investment in R&D, with new Hangzhou R&D Center and plans for overseas R&D facilities.

• Commitment to sustainable growth, ESG integration, and talent development.