China Boton Group's H1 2025 net profit plunges 86.1% amid revenue decline

China Boton Group Company Limited reported a substantial decrease in net profit for the six months ended June 30, 2025, falling to yuan 8.7m from yuan 62.7m in the same period last year, an 86.1% reduction. Total revenue also decreased by 15.1% to yuan 637.8m (2024: yuan 751.0m), with gross profit dropping 34.9% to yuan 198.9m (2024: yuan 305.6m). The company's net profit margin diminished significantly to approximately 1.4% from 8.3%.

Sales of flavor enhancers saw a significant decline of 41.7% to yuan 179.5m. Conversely, food flavors, fine fragrances, and e-Cigarette products segments reported mild revenue increases of 3.1%, 5.0%, and 4.3% respectively. The group's total borrowings increased to yuan 2,039.7m from yuan 1,850.0m in December 2024, raising the debt gearing ratio to 59.8% from 54.3%.

Capital expenditures surged to yuan 214.351m (2024: yuan 75.477m), primarily driven by property, plant, and equipment additions of yuan 204.622m. No interim dividend was recommended for the period.