Tenfu Holdings sees revenue, profit drop amid weak market

Tenfu (Cayman) Holdings Company Limited experienced a 17.1% decrease in revenue to RMB672.9m for the first half of 2025, down from RMB811.3m in the same period of 2024. Profit for the period also fell by 29.5% to RMB48.7m, attributed to a weak consumption market and global economic factors. Sales of tea leaves, tea snacks, and tea ware all saw declines, with tea leaves revenue dropping 19.1% to RMB462.7m.

Despite the revenue contraction, the company's gross profit margin slightly increased from 52.3% to 52.6% due to cost control measures on raw materials and labor. Distribution costs decreased by 15.3% to RMB156.3m, and administrative expenses fell by 11.7% to RMB127.2m. Cash and cash equivalents rose by 59.3% to RMB542.4m, driven by cash generated from operations, and the gearing ratio improved from 22.3% to 12.2%.

The Board declared an interim dividend of HK$0.02 per share, representing approximately 50% of the consolidated after-tax net profit for the period, consistent with the previous year. The company continues to focus on optimizing its sales network, enhancing brand reputation, and developing new tea-related products to navigate the market.