Hengan International reports stable revenue despite profit dip

Hengan International Group reported a slight revenue decrease of 0.2% to RMB11.81bn for the six months ended June 30, 2025, compared to RMB11.84bn in the prior year. Operating profit for the period was RMB1.76bn, a decrease of 7.3% from RMB1.90bn in the first half of 2024. Profit attributable to shareholders also saw a 2.6% decline, settling at RMB1.37bn. Basic earnings per share were RMB1.206.

The group's tissue paper business was a key driver, with sales increasing by approximately 3.2% to RMB7.17bn, accounting for 60.8% of total revenue. However, hygiene products revenue declined by approximately 14.4% to RMB3.30bn due to intense price competition. The gross profit margin for tissue paper products improved to 21.9%, but the overall gross profit margin for the group declined to 32.3%. The board declared an interim dividend of RMB0.70 per share, consistent with the previous year.