Cheerwin Group reports revenue growth, profitability boost despite profit dip

Cheerwin Group Limited reported a 7.2% increase in revenue to RMB1,338.8m for the six months ended June 30, 2025, up from RMB1,249.1m in the prior year. Gross profit rose 14.0% to RMB659.8m, with the gross profit margin expanding by 2.9 percentage points to 49.3%. Despite a 2.7% decrease in profit for the period to RMB171.1m, basic earnings per share stood at RMB13.02 cents.

The growth was primarily driven by the pet stores and pet products category, which saw revenue surge by 101.4% to RMB96.0m, and a 4.3% increase in household care products revenue to RMB1,214.2m. Online channels revenue increased by 27.4% to RMB517.2m, contributing significantly to the overall performance.

However, personal care products experienced a 25.8% revenue decrease to RMB25.8m. The Group’s effective tax rate increased from 20.1% to 26.2% due to a subsidiary’s preferential tax rate renewal process. An interim dividend of RMB0.0521 per share was declared, maintaining a stable payout ratio of 40.0%.