Pou Sheng International (3813) Q4 2025 earnings summary

Executive summary

• Revenue declined 7.2% year-over-year to RMB 17,132mn, with gross profit down 9.1% due to aggressive promotions and weak offline sales.

• Net profit attributable to owners fell 57.1% year-over-year to RMB 210.8mn, reflecting operational deleverage and increased markdowns.

• Digital sales contributed over 30% of total sales, with Douyin/livestreaming sales up over 70% year-over-year.

• Membership base grew 7% to 65.8 million, contributing over 90% of sales.

• The Group continued to streamline operations, enhance digital capabilities, and optimize inventory management.

Financial highlights

• Gross profit margin decreased to 33.5% (down 0.7ppt year-over-year); operating profit margin dropped to 2.1% (down 1.7ppt year-over-year).

• EBITDA fell 26.5% year-over-year to RMB 1,360.8mn.

• Net cash position at year-end was RMB 1,821.9mn, down 31.6% from FY24; cash and cash equivalents declined 54.9% to RMB 640.4mn.

• Free cash flow for FY25 was RMB 307.6mn.

• Total capital expenditure decreased to RMB 243.4mn.

Outlook and guidance

• Focus on omni-channel integration, digital transformation, and membership operations to drive future growth.

• Strategic alliances, new brand contributions, and expanding both online and offline channels targeted for quality growth.

• Plans include further SAP system integration, enhancing livestreaming/e-commerce, and targeting growth in outdoor and instant retail segments.

• Continued store network optimization and cost competitiveness improvements planned.

• The Group aims to maintain a strategic approach to inventory and broaden its brand and channel mix.