Zhou Hei Ya sees net profit surge 228% despite revenue dip

Zhou Hei Ya International Holdings Company Limited reported a notable financial turnaround for the six months ended June 30, 2025, with profit for the period surging by 228.0% to RMB107,940, up from RMB32,913 in the same period of 2024. This growth was despite a 2.9% decrease in total revenue, which stood at RMB1,222,561 compared to RMB1,259,511 previously, attributed to strategic closures of underperforming retail stores. The company’s gross profit increased by 2.7% to RMB716,585, and the gross profit margin expanded from 55.4% to 58.6%.

The company also saw administrative expenses decrease by 3.3% to RMB115,928, reflecting optimized organizational structure and improved per capita efficiency. Income tax expense increased by 60.1% to RMB38,201 due to significantly higher pre-tax profit. The total number of retail stores as of June 30, 2025, was 2,864, a decrease from 3,456 stores in 2024.