Proya Cosmetics (603605) Q2 2025 earnings summary

Executive summary

• Operating revenue for H1 2025 reached RMB5.36 billion, up 7.21% year-over-year, with net profit attributable to shareholders rising 13.80% to RMB799 million and net cash flows from operating activities increasing 95.34% to RMB1.29 billion.

• Gross profit margin improved to 73.38% (from 71.39%), while the sales expense ratio increased to 49.59% due to higher image promotion expenses.

• The company proposes a cash dividend of RMB8.00 per 10 shares, totaling an estimated RMB315.2 million.

Financial highlights

• Net assets attributable to shareholders rose 6.02% from year-end 2024 to RMB5.73 billion; total assets increased 9.99% to RMB8.28 billion.

• Basic EPS was RMB2.02, up 13.48% year-over-year; weighted average ROE was 14.35%, down 0.99 percentage points.

• Non-recurring gains and losses contributed RMB27.9 million to net profit.

Outlook and guidance

• The company continues to focus on R&D, digital transformation, and international expansion, with ongoing investments in supply chain digitalization and green manufacturing.

• Management highlights the importance of agile organization, brand matrix development, and overseas market opportunities.