Crystal International Group (2232) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 rose 12.4% year-over-year to US$1,229 million, driven by strong demand from key brand customers and expansion into diversified product categories.

• Net profit increased by 16.8% year-over-year to US$98 million, with net profit margin improving from 7.7% to 8.0%.

• Gross profit increased 13.7% to US$243 million, with gross margin improving to 19.7% from 19.5% year-over-year.

• Interim dividend declared at HK16.3 cents per share, a 60% payout ratio, up from HK13.8 cents last year.

• Maintained a positive net cash position and robust operational cash flow, supporting ongoing investments and shareholder returns.

Financial highlights

• Revenue: US$1,229 million (up 12.4% year-over-year, from US$1,094 million).

• Gross profit: US$243 million (up 13.7% year-over-year); gross margin increased to 19.7%.

• Net profit: US$98 million (up 16.8% year-over-year, from US$84 million); EPS: 3.44 US cents (up from 2.94 US cents).

• Operating cash flow: US$155 million (up from US$44 million in prior year period).

• Capital expenditure: US$60 million (up from US$52 million year-over-year).

Outlook and guidance

• Tariff negotiations between the USA and key partners have reduced trade policy uncertainty, boosting brand confidence.

• Focus on capacity expansion in Vietnam, vertical integration, automation, and new partnerships in Europe to support growth.

• Plans to capture growth in Europe and Asia, with a new partnership with a leading European brand in the second half.

• Capital expenditure for the year expected to be comparable to last year, with continued investment in automation.

• Plans to expand production bases near Europe for greater regional diversification.