Pou Sheng International (3813) Q2 2026 earnings summary

Executive summary

• Revenue for 1H 2026 was RMB 8,965 million, down 2.1% year-over-year, with gross profit margin improving by 0.4 percentage points to 33.9%.

• Operating profit rose 23.6% year-over-year to RMB 348 million, with operating margin up 0.8 percentage points to 3.9%.

• Net profit attributable to owners increased 29.9% year-over-year to RMB 244 million, with net profit margin rising to 2.7%.

• Interim and special dividends declared at HK$0.016 per share each, up 39.1% year-over-year, with a payout ratio of 60%.

• Enhanced profitability driven by inventory optimisation, discount control, and restructuring synergies.

Financial highlights

• EBITDA rose 2.9% to RMB 825.2 million; EBITDA minus depreciation of ROUA up 11.2%.

• Net cash position at RMB 2,161.6 million as of June 30, 2026; no bank borrowings.

• Free cash flow for 1H 2026 was RMB 848.8 million.

• Inventories decreased 7.0% to RMB 4,668.3 million; trade receivables turnover averaged 18 days.

• Capital expenditure for 1H 2026 was RMB 96.3 million, down 19.3% year-over-year.

Outlook and guidance

• Focus on value-added services, quality customer experiences, and deepening strategic partnerships.

• Continued digital transformation, omni-channel integration, and dynamic inventory management.

• Plans to expand multi-brand outlets, deepen lower-tier city penetration, and enhance online-offline integration.

• Continued investment in AI, SAP system upgrades, and business intelligence platforms.

• Sportswear market in Greater China expected to grow, supported by major sporting events and government policy.