Deyun Holding reports increased net loss despite footwear growth

Deyun Holding reported a net loss of RMB22.5 million for the six months ended June 30, 2025, a significant increase from RMB0.1 million in the comparable period of 2024. Despite this, the group’s revenue rose by approximately 5.6% to RMB288.6 million, primarily driven by its footwear business segment. Footwear accounted for approximately 86.2% of total revenue, up from 85.7% in 2024, mainly due to new customer orders. Gross profit, however, slightly decreased by 0.7% to RMB28.0 million, impacted by deteriorating performance and increased costs in the lace and dyeing business.

The group's lace and dyeing segment experienced a decline in revenue, with lace revenue decreasing by 28.8% to RMB5.2 million due to intense competition. Dyeing revenue saw an 8.8% increase to RMB34.5 million, benefiting from redirected orders due to mismanagement or closures of nearby factories. Administrative expenses increased to RMB21.1 million, attributed to an increase in top and senior staff and initial legal and consulting costs for new projects.

The group also recorded an impairment loss of RMB4.4 million on property, plant, and equipment, mainly due to the worsening performance of the lace and dyeing business. Additionally, a RMB8.1 million share of loss from a joint venture was reported, stemming from one-off installation costs for a museum brand. Total assets increased to RMB507.7 million from RMB492.8 million at December 31, 2024, while total liabilities rose to RMB228.1 million from RMB189.2 million. The gearing ratio increased to 0.3 from 0.2.