Investors are advised to consult professional analyst reports for authoritative, timely, and comprehensive insights to uncover potential market opportunities.

On June 9th, Hengan International (HK01044), a leading Hong Kong-listed consumer goods giant known for brands like "心相印" (Heart to Heart) and "七度空间" (7-D Space), issued a voluntary announcement.

The company stated that its Chairman and Executive Director, Mr. Shi Wenbo, has taken a temporary leave of absence and is suspending his duties due to personal health reasons. Hengan International emphasized that the group's business operations remain stable and normal, functioning as usual.

Mr. Shi Wenbo, aged 76, who serves as Chairman, Executive Director, and a member of the Nomination Committee, is currently on temporary leave and has suspended his duties due to personal health reasons.

As one of the pivotal figures at Hengan International, Mr. Shi has served as Group Chairman and Executive Director since 1998. He brings over 42 years of extensive experience in the consumer goods manufacturing and distribution industry and enjoys a high reputation within the sector.

In the 2025 Chairman's Statement, Mr. Shi noted that the group would continue to deepen its three core strategies: "Focus on Core Business," "Brand Leadership," and "Long-termism." The focus remains on its two core businesses—tissue paper and hygiene products—actively promoting premiumization and product upgrades to meet consumer demand for high-quality products.

Hengan International disclosed that, as of the announcement date, the group's daily management, strategy execution, and operational decisions continue to be managed smoothly by the existing administrative team. This senior management team comprises the company's CEO, other executive directors, and senior group executives.

The Board of Directors of Hengan International emphasized that the board possesses a diverse and balanced set of skills, experience, and a robust corporate governance structure. It is anticipated that Mr. Shi's temporary leave will not have any negative impact on the group's business.

It is noted that the top management of Hengan International has undergone significant changes over the past year. On April 17, 2025, another co-founder of the group, Vice Chairman and Executive Director Mr. Xu Lianjie, passed away.

Mr. Xu had been fully dedicated since the company's founding in 1985, helping build it into one of China's largest manufacturers and distributors of personal and household hygiene products. He was renowned in the domestic consumer goods industry for his entrepreneurial spirit and insight.

At that time, the Board of Hengan International stated that Mr. Xu's passing would not affect the group's operations and pledged to continue efforts to strengthen and develop the group.

According to Hengan International's 2025 annual report, the group's full-year revenue increased by approximately 1.8% year-on-year to about RMB 23.069 billion.

While revenue remained stable, Hengan International achieved a significant breakthrough in profitability. Benefiting from improved gross margins, the profit attributable to equity holders in 2025 rose approximately 10.3% year-on-year to about RMB 2.535 billion.

The group's overall gross profit for 2025 increased by approximately 6.6% year-on-year to about RMB 7.806 billion. With reduced promotional spending on tissue paper in the second half of the year and a recovery in hygiene product sales, the full-year gross profit margin rose from 32.3% in 2024 to approximately 33.8%.

Looking at core business segments, the tissue paper business became a key engine driving Hengan International's revenue recovery. In 2025, benefiting from a continuously increasing proportion of premium tissue sales and double-digit growth in new retail channels, the group's tissue business revenue returned to growth, rising approximately 5.6% year-on-year to about RMB 14.169 billion, accounting for about 61.4% of the group's total revenue.

Hengan International stated that its "Heart to Heart" brand launched a premium "向野而生" (Born for the Wild) series using 100% virgin wood pulp and four-layer soft-thick embossing technology, as well as co-branded products developed with Sanrio, which have been well-received by younger consumers.

Regarding the hygiene products business (including sanitary napkins and diapers), although sales were impacted in the first half of 2025 due to aggressive promotional strategies by domestic competitors, the decline was successfully reversed in the second half. For the full year 2025, Hengan International's hygiene products business generated sales revenue of approximately RMB 6.571 billion, accounting for 28.5% of total revenue, with the gross profit margin maintained at a relatively high level of 58.3%.

Beyond upgrading its core product portfolio, the strength of e-commerce and new retail channels served as another major engine for Hengan International's steady growth, with full-year sales revenue from this channel increasing by approximately 10.1%.

Hengan International indicated that the group will closely follow e-commerce and new retail trends, expanding brand flagship stores and emerging channels (such as Douyin), enhancing data analytics capabilities, and broadening consumer reach. "The group strengthens engagement with younger demographics through live streaming and community activities and has appointed popular celebrities as brand ambassadors to enhance brand influence. The group will continue to increase its market share in e-commerce and new retail channels, injecting momentum for future growth."

Disclaimer: The content and data herein are for reference only and do not constitute investment advice. Verification is recommended before use. Any actions taken based on this information are at the reader's own risk.

Cover image source: Hengan International official website.

For extensive information and precise analysis, please refer to the Sina Finance app.