HENGAN INT'L (01044) announced its annual results for the period ending December 31, 2025. The group recorded revenue of RMB 230.69 billion, an increase of 1.8% compared to the previous year. Profit attributable to equity holders was RMB 25.35 billion, representing a 10.3% year-on-year growth. Basic earnings per share were RMB 2.227. The board proposed a final dividend of RMB 0.7 per share.
The group actively followed the trend of fragmented consumer channels and adapted to new consumption models by vigorously developing e-commerce and new retail channels. In response to the sales demand for immediate supply and emergency stockpiling of daily necessities, the company explored emerging instant retail channels. Sales revenue from e-commerce and new retail channels increased by 10.1% year-on-year, accounting for 36.9% of total sales (2024: 34.1%).
On the other hand, the group proactively identified new growth opportunities within traditional channels, with sales efficiency being particularly notable in the hygiene products market. Additionally, the company continued to promote product premiumization and diversify its product portfolio to meet consumers' higher demands for functionality and added value, thereby enhancing brand image and injecting new momentum for long-term development.
Key premium products, including the "Tianshan Velvet Cotton" sanitary napkin series, the "Heartfelt" wet wipes series, and the premium diaper series "Q•MO," maintained strong sales momentum throughout the year, effectively boosting profitability. New product launches during the year, such as the "Cranberry A+" organic cotton sanitary napkin and the "Wild at Heart" premium tissue series, aligned with the "value-driven consumption" trend, contributing new energy to the group's overall revenue.
During the year, growth in tissue sales effectively offset the decline in hygiene product sales and the increase in promotional expenses. As a result, the group's gross profit for 2025 rose by approximately 6.6% to approximately RMB 78.06 billion (2024: RMB 73.25 billion). In the second half of 2025, reduced promotional spending on tissue products and a recovery in hygiene product sales led to an improvement in the full-year gross profit margin to approximately 33.8% (2024: 32.3%).
Looking ahead to 2026, the group plans to allocate sales expenses more precisely. Premium, high-margin products are expected to maintain growth, which will help mitigate the impact of raw material price fluctuations on profitability. The group anticipates that its gross profit will remain stable.