Pou Sheng International sees profit tumble 44% amid challenging retail market

Pou Sheng International (Holdings) Limited reported a revenue of RMB9,159.4m for the six months ended June 30, 2025, an 8.3% decrease from the same period last year. Gross profit also fell by 10.1% to RMB3,069.2m, resulting in a gross profit margin of 33.5%, down 0.7 percentage points year-on-year. Operating profit saw a substantial 41.6% decline to RMB281.6m, with the operating profit margin decreasing to 3.1%.

Profit attributable to owners of the company for the period decreased by 44.1% to RMB187.6m, largely due to increased markdowns and operational deleverage in a market characterized by weak foot traffic and aggressive promotions. Basic earnings per share were RMB3.62 cents, a 44.1% reduction from RMB6.48 cents in the prior year. The company declared an interim dividend of HK$0.0115 and a special dividend of HK$0.0115 per share.

Working capital efficiency showed an average inventory turnover period of 146 days, up from 130 days in the first half of 2024. Despite this, inventory decreased to RMB4,865.4m from RMB4,946.3m at December 31, 2024. The Group maintained a solid net cash position of RMB2,497.4m, though bank borrowings increased significantly to RMB196.778m from RMB39.273m at December 31, 2024.