WEILONG Delicious Global (9985) H1 2025 earnings summary

Executive summary

• Revenue for 1H2025 rose 18.5% year-over-year to RMB3,482.9 million, driven by omni-channel expansion, brand building, and product innovation.

• Net profit increased 18.5% to RMB736.2 million, with net profit margin stable at 21.1%.

• Gross profit grew 12.3% to RMB1,642.4 million, but gross margin declined by 2.6 percentage points to 47.2% due to higher raw material costs, partially offset by supply chain improvements.

• Interim dividend of RMB0.18 per share declared, totaling approximately RMB437.6 million, about 60% of net profit.

• Focused on multi-category product innovation, youth-oriented brand rejuvenation, and omni-channel expansion to drive growth.

Financial highlights

• Distribution and selling expenses rose 10.9% to RMB527.2 million, but as a percentage of revenue fell to 15.1%.

• Administrative expenses decreased 17% to RMB201.1 million, now 5.8% of revenue.

• Basic and diluted EPS were RMB0.31, up from RMB0.27 in the prior year.

• Cash and cash equivalents plus term deposits increased 24% to RMB6,529.9 million; borrowings rose to RMB1,176.2 million.

• Gearing ratio increased to 16.6% from 6.5% at year-end 2024.

Outlook and guidance

• Plans to deepen multi-category strategy, expand product matrix, and launch innovative products.

• Continued focus on brand youthfulness, omni-channel integration, and digital transformation.

• Ongoing investment in production capacity, supply chain automation, and talent development to support long-term growth.