Bosideng International (3998) H2 24/25 earnings summary

Executive summary

• Revenue rose 11.6% year-over-year to RMB 25,901.7 million, with profit attributable to equity holders up 14.3% to RMB 3,513.9 million.

• Branded down apparel remained the largest segment and main growth driver, contributing 83.7% of revenue, supported by product innovation and digital transformation.

• OEM management revenue grew 26.4%, while gross profit margin declined by 2.3 ppt to 57.3% due to channel mix, product portfolio, and higher raw material costs.

• The company reinforced its leadership in down apparel, expanded online sales, and received multiple international brand accolades.

• The Board proposed a final dividend of HKD22.0 cents per share.

Financial highlights

• Gross profit increased 7.3% year-over-year to RMB 14,839.9 million; operating profit up 12.9% to RMB 4,966.9 million.

• Basic EPS rose to RMB 31.58 cents; full-year dividend per share up 12% to 28.0 HKD cents.

• Gross profit margin declined by 2.3 ppt to 57.3%; net profit margin improved by 0.4 ppt to 13.6%.

• Inventory increased 23.6% to RMB 3,950.6 million; average inventory turnover days rose by 3 days to 118.

• Net cash position at RMB 13,058.7 million; liquidity ratio improved to 2.0x, gearing ratio reduced to 5.3%.

Outlook and guidance

• Focus on strengthening core down apparel business and expanding into fashion and functional apparel with technology.

• Plans to enhance product innovation, refine sales channel operations, and drive user-value-based growth.

• OEM business to deepen partnerships, expand Southeast Asia production, and boost design and innovation capabilities.

• Ladieswear business to optimize brand positioning and improve operational efficiency for sustainable growth.