Hong Kong-listed nursery-product maker BUTONG GROUP reported robust topline growth for the year ended 31 December 2025. Consolidated revenue climbed 15.8% year on year to RMB1.45 billion, driven mainly by a surge in baby-care products and feeding gear sales.

Gross profit expanded 13.8% to RMB715.76 million, although the gross margin eased to 49.5% (2024: 50.4%) as the product mix tilted toward lower-margin baby-care items.

Profit before tax rose 9.1% to RMB127.31 million, while profit for the year increased 11.4% to RMB65.20 million. Adjusted net profit—a non-HKFRS metric excluding listing costs, share-based payments and preferred-share interest—grew 22.3% to RMB135.56 million.

Earnings per share slipped to RMB1.02 (basic) from RMB1.08 a year earlier, reflecting the enlarged share base after the company’s September 2025 Hong Kong IPO, which raised net proceeds of HK$702.50 million.

Product mix shifted markedly: • Baby-care products revenue jumped 61.0% to RMB625.07 million, accounting for 43.2% of total sales. • Feeding gear more than doubled, up 147.5% to RMB164.65 million. • Travel gear fell 18.3% to RMB466.25 million, with strollers, car seats and baby carriers all declining. • Sleep gear contracted 15.0% to RMB189.85 million.

Channel performance showed continued dominance of online sales, which contributed 72.9% of revenue at RMB1.05 billion (+12.4%). Offline revenue improved 25.8% to RMB392.45 million as distributor coverage widened.

Operating expenses reflected ongoing expansion: selling and distribution costs rose 17.0% to RMB457.53 million; administrative and other expenses jumped 36.5% to RMB124.94 million, partly due to higher share-option charges and listing fees. R&D spending reached RMB25.43 million, representing 1.8% of revenue.

Despite heavier expenses, the balance sheet strengthened materially. Net assets swung from a RMB42.78 million deficit to RMB1.09 billion, aided by IPO proceeds and conversion of preferred shares. Cash and cash equivalents stood at RMB882.61 million (2024: RMB217.12 million), lifting the current ratio to 3.3× and the quick ratio to 3.0×. Gearing was 33.4%. No final dividend was declared.

Management outlined a “dual-engine” strategy focusing on product upgrades and new business lines, alongside accelerated AI integration and a new digitalised plant in Ningbo scheduled to commence operations in 2H 2026.

No material acquisitions, disposals or contingent liabilities were noted during the period. Post-year-end, the company launched a 10-year share-award scheme funded by existing shares.