Bosideng International (3998) H1 25/26 earnings summary

Executive summary

• Revenue for the six months ended September 30, 2025, rose 1.4% year-over-year to RMB 8,927.6 million, with profit attributable to equity shareholders up 5.3% to RMB 1,189.4 million.

• Branded down apparel remained the core growth driver, offsetting declines in OEM management, ladieswear, and diversified apparel segments.

• Gross profit margin was stable at 50.0%, with operating profit margin up to 17.0%.

• Interim dividend of HKD 6.3 cents per share declared.

• The company advanced digitalization, ESG, and internationalization initiatives.

Financial highlights

• Operating profit increased 3.1% year-over-year to RMB 1,516.8 million; gross profit reached RMB 4,466.7 million, up 1.7%.

• Basic EPS was unchanged at RMB 10.35 cents; interim dividend per share increased 5.0% to HKD 6.3 cents.

• Inventory turnover days improved by 11 days to 178, reflecting leaner inventory management.

• Net cash as of September 30, 2025, was RMB 10,293.5 million, up from RMB 6,413.2 million a year earlier; cash and cash equivalents stood at RMB 3,034.0 million.

• Gearing ratio improved to 6.1% from 20.4% a year earlier; bank borrowings at RMB 977.7 million.

Outlook and guidance

• Focus on fashionable, functional, and technological apparel to maintain global leadership in down apparel.

• Plans to enhance product innovation, refine channel management, and deepen customer relationships.

• OEM business aims to strengthen core client ties and expand mid-to-high-end client base.

• Ladieswear business to clarify brand positioning and optimize operational strategies.

• Continued investment in digitalization and ESG initiatives, with a focus on international expansion.