CARPENTER TAN (00837.HK), known as the "world's first listed comb company," released its 2025 annual report on April 17. The report indicated that while the company achieved double-digit percentage year-on-year growth in both operating revenue and gross profit, its net profit attributable to shareholders experienced a slight decline.
This marks the second consecutive year of decreasing net profit for shareholders. In 2025, the company reported operating revenue of RMB 558 million, a 10.44% increase compared to 2024. Gross profit reached RMB 345 million, up 13.1% year-on-year. However, net profit attributable to equity shareholders was RMB 171 million, representing a minor decrease of 0.20%.
The revenue growth is directly linked to the company's expansion in both online and offline operations. Throughout 2025, offline sales for CARPENTER TAN increased by 11.2% compared to the previous year. The total number of stores reached 1,312, an increase of 58 from the 1,254 stores in 2024. The vast majority of these stores are located in mainland China, with over 70% situated in shopping centers. The company operates only three directly managed stores in Hong Kong and added two overseas locations.
Online sales saw a year-on-year increase of 9.2% in 2025. From a product category perspective, gift box sales remain the core business, accounting for 91.9% of total sales. In contrast, sales of the company's signature combs accounted for only 7.1%, showing a slight decrease from 2024.
Despite having numerous franchise stores, CARPENTER TAN's primary revenue does not come from franchise fees. The annual report noted that franchise fee income in 2025 was RMB 712,000, a sharp decline of 39.6% from the RMB 1.179 million recorded in 2024. This decrease occurred even as the number of franchise stores increased in 2025, resulting in an average franchise fee per store of just RMB 545 for the year.
A significant factor impacting the company's 2025 performance was a substantial rise in "other operating expenses," which surged by 364.3% year-on-year to RMB 30.82 million. According to the report, this increase was primarily due to a loss on the derecognition of property, plant, and equipment.
This loss is connected to the conclusion of a long-standing legal dispute. In the Chairman's Statement within the annual report, Chairman Tan Chuanhua focused less on interpreting the company's financial results and more on apologizing to shareholders and investors. He explained that after a decade-long property rights dispute concerning the company's management center office building in Jurong, Jiangsu province, the Supreme Court rejected an application for retrial in January 2026. This decision signifies the end of常规 judicial procedures and a final loss in the case. Chairman Tan stated the company would continue to seek redress through appeals, petitions, media exposure, and government support to mitigate losses.
The company maintains that the final ruling was unjust and may lodge an appeal with the procuratorate or a complaint with the Supreme Court.
The dispute originated in late 2013 when CARPENTER TAN signed a contract with developer Suzhou Jianxing Real Estate to purchase a commercial property in Jurong for RMB 33.5563 million to serve as its management center. The company made full payment, renovated the property, and moved in. However, a critical issue was that the property title was never transferred.
In 2020, Suzhou Jianxing Real Estate entered bankruptcy liquidation due to financial difficulties. The bankruptcy administrator demanded contract termination and the return of the property, subsequently suing CARPENTER TAN. As the property title had not been transferred, it was considered part of the developer's bankruptcy estate. After five years of litigation, CARPENTER TAN lost the case at the first instance, second instance, and final appeal levels. The company now faces the prospect of losing both the payment and the property, leading to the recognition of an impairment loss of RMB 24.332 million for the asset.
Founded by 68-year-old Chairman Tan Chuanhua, CARPENTER TAN was listed on the Hong Kong Stock Exchange in December 2009. It holds the distinction of being the world's only publicly listed company primarily focused on combs. The company is recognized as a high-dividend consumer stock and a benchmark for local manufacturing in Hong Kong, having distributed cumulative dividends that exceed the total funds raised from its initial public offering.
The company's management retains strong family characteristics. Among the five executive directors on the board are Chairman Tan and his two sons: 40-year-old Tan Difu and 36-year-old Tan Lizi. Additionally, Tan Chuanhua's wife, 61-year-old Fan Chengqin, who is also the mother of his two sons, serves as a co-founder and quality control director.
A notable feature of CARPENTER TAN is its reputation for consistent, stable, and high-ratio dividend distributions, making it a typical high-dividend value stock on the Hong Kong market. As of 2025, the company's cumulative dividend payout has significantly surpassed its IPO fundraising amount, with a long-term payout ratio ranging between 50% and 100%, underscoring the Tan family's emphasis on shareholder returns.
As of the close on April 20, CARPENTER TAN's share price fell by 1.80% to HKD 7.64 per share, resulting in a total market capitalization of HKD 1.9 billion.
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