HENGAN INT'L (01044) releases annual performance, with attributable profit to shareholders of 2.535 billion yuan, an increase of 10.3% year-on-year.

HENGAN INT'L (01044) released its annual performance for the year ending December 31, 2025. The group's revenue for the period amounted to 23.069 billion yuan, an increase of 1.8% year-on-year. The profit attributable to equity holders of the company was 2.535 billion yuan, an increase of 10.3% year-on-year. The basic earnings per share were 2.227 yuan, and a final dividend of 0.7 yuan per share is proposed. The group closely followed the trend of fragmented consumer channels and catered to new consumer models by vigorously developing e-commerce and new retail channels. In response to the immediate supply and emergency sales demand for daily necessities, the group explored emerging channels for instant retail. The revenue from e-commerce and new retail sales increased by 10.1% year-on-year, accounting for 36.9% of total sales (compared to 34.1% in 2024). Additionally, the group actively explored new growth points in traditional channels, with significant sales benefits in the hygiene products market. The group also continued to promote the high-endization of products, enrich the product portfolio, meet consumers' higher requirements for product functionality and added value, enhance the brand image, and inject new momentum into long-term development. Key high-end products such as the "Tianshan Fluff Cotton" sanitary napkin series, the "Heart to Heart" wet tissue series, and the high-end diaper series "QMO" maintained strong sales momentum during the year, effectively improving profitability. In addition, the group's new products launched during the year, such as the "Cranberry A+" organic cotton sanitary napkins and the "Born in the Wild" high-end tissue series, all align with the trend of "value consumption" and inject new impetus into the overall income of the group. Looking back on the year, the growth in tissue sales effectively offset the decline in hygiene product sales and the increase in promotional expenses, leading to an overall gross profit increase of approximately 6.6% to about 7.806 billion yuan in 2025 (compared to 7.325 billion yuan in 2024). In the second half of 2025, as tissue promotions were reduced and hygiene product sales improved, the group's full-year gross margin improved to about 33.8% (compared to 32.3% in 2024). It is expected that in 2026, the group will accurately allocate sales expenses, while high-end, high-margin products will continue to grow, effectively mitigating the impact of raw material price fluctuations on gross profit, and the group's gross profit is expected to remain stable.