Mao Geping Cosmetics (1318) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2025, reached RMB2,588.2 million, up 31.3% year-over-year; net profit was RMB670.4 million, up 36.1% year-over-year.

• Growth was driven by strong performance in color cosmetics, skincare, and new fragrance lines, as well as expanded online and offline sales channels.

• Expanded product portfolio with new high-end perfume lines and continued strong performance in core categories.

• Enhanced brand image through flagship store openings, upgraded counters, and experiential marketing.

• Membership base grew, with overall repurchase rate rising to 26.8% from 24.8% year-over-year.

Financial highlights

• Revenue increased to RMB2,588.2 million from RMB1,971.5 million, a 31.3% rise year-over-year.

• Net profit rose to RMB670.4 million from RMB492.5 million, a 36.1% increase year-over-year.

• Gross profit margin remained stable at 84.2% (2025) vs. 84.9% (2024).

• Adjusted profit for the period (non-HKFRS) was RMB672.2 million, up from RMB509.2 million.

• Cash and cash equivalents at period end were RMB3,135.5 million, with a strong current ratio of 4.6x.

Outlook and guidance

• Plans to expand offline and online sales networks, including flagship stores and enhanced e-commerce presence.

• Focus on product innovation in color cosmetics, skincare, and fragrance, with new category exploration and continued R&D investment.

• Strategic overseas expansion targeting Europe, America, and Asia-Pacific, with local R&D and marketing teams and partnerships.

• Ongoing investment in R&D centers and makeup artistry training facilities, with new facilities planned.