Carpenter Tan 2025 Results: Revenue Climbs 10% to RMB 558.22 Million, Net Profit Stable; Higher Final Dividend Proposed

Bulletin Express03-27 21:07

Carpenter Tan Holdings (00837) reported FY2025 revenue of RMB 558.22 million, up 10.4% year on year, driven by a 11.7% rise in offline sales to RMB 323.98 million and a 9.1% gain in online sales to RMB 228.74 million. Directly-operated outlets contributed RMB 4.79 million.

Gross profit grew 13.1% to RMB 345.30 million, lifting gross margin by 1.5 ppt to 61.9%. Administrative expenses increased 8.6% to RMB 45.43 million, while selling and distribution costs rose 13.2% to RMB 96.95 million. Other operating expenses surged to RMB 30.82 million (2024: RMB 6.64 million) due mainly to a RMB 24.33 million loss on derecognition of a Jurong property, offsetting operating gains and keeping net profit essentially flat at RMB 171.03 million (-0.3%).

Earnings per share slipped 0.2% to RMB 68.76 cents. The board recommends a final dividend of HK 38.31 cents per share (RMB 34.44 cents), up 4.6% from last year and equal to a 50.0% payout ratio. Payment is subject to shareholder approval on 22 May 2026, with distribution slated on or before 30 June 2026.

Operating cash flow remained solid: cash and cash equivalents stood at RMB 79.74 million, with an additional RMB 346.00 million in non-pledged fixed deposits. The Group has no interest-bearing bank borrowings. Net assets rose 9.7% to RMB 970.20 million.

The retail network expanded to 1,307 franchised stores and 4 self-operated outlets, a net addition of 57 outlets during the year. Capital expenditure reached RMB 18.83 million (2024: RMB 33.08 million). The Group holds 134 patents and 55 design copyrights, and maintains 768 valid trademarks.

Key 2026 priorities include executing the 2026-2028 development plan, launching a Beijing flagship store and exploring further flagships in Shanghai, Guangzhou or Shenzhen, accelerating prime-location expansion and image upgrades, reinforcing market regulation, and continuing investment in process technology, brand building and barrier-free initiatives.

There were no interest-bearing liabilities or pledged assets at year-end. The Group continues to pursue legal avenues concerning its Jurong property dispute following an unfavorable court ruling in December 2025.

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