Cheerwin Group Limited (“Cheerwin”) reported resilient first-half 2026 results, underpinned by robust household-care demand, channel expansion and initial consolidation of recently acquired Hebei Kangda.
Financial Highlights (Six months ended 30 June 2026 vs 1H25)
• Revenue rose 22.1% to RMB 1.63 billion, driven by both online (+27.3%) and offline (+18.9%) channel gains. • Gross profit increased 28.4% to RMB 0.85 billion; gross margin widened 2.5 ppts to 51.8% on stronger brand mix and supply-chain efficiencies. • Profit for the period advanced 22.7% to RMB 0.21 billion, keeping net margin stable at 12.8%. • Basic EPS climbed 22.2% to RMB 15.91 cents.
Segment Performance
• Household care remained the core business, contributing RMB 1.49 billion (+23.0 %) or 91.3% of revenue; margin improved to 51.2%. • Pet business revenue reached RMB 110.61 million (+15.3%), with gross margin up 3.4 ppts to 61.5%. • Personal care sales grew 11.7% to RMB 28.80 million; margin rebounded to 52.9% (1H25: 40.1%).
Cost & Expenses
• Selling and distribution expenses rose 22.6% to RMB 500.56 million, largely reflecting higher e-commerce promotion and logistics spending. • Administrative expenses jumped 45.1% to RMB 116.13 million, mainly from enlarged staff costs after integrating new businesses. • Finance cost remained low at RMB 1.28 million (-1.1%).
Cash Flow & Balance Sheet
• Net operating cash outflow widened to RMB 206.12 million (1H25: RMB 36.38 million) amid higher working-capital needs and tax payments. • Cash, cash equivalents and time deposits totaled RMB 2.42 billion as at 30 June 2026; gearing ratio edged down to 1.7%. • Capital expenditure increased to RMB 60.94 million, reflecting factory automation upgrades.
Strategic Developments
• Completed the RMB 0.40 billion acquisition of 100% of Hebei Kangda in January 2026, adding RMB 268.65 million revenue and RMB 72.22 million profit in 1H26. • Post-period, the board reallocated RMB 1.39 billion of unutilised IPO proceeds, prioritising R&D, digitalisation, pet-business expansion and M&A.
Dividend
• Board declared an interim dividend of RMB 0.0636 per share (approximately HK$0.0735), equivalent to a 40% payout ratio; record date 15 September 2026, payment on or around 7 October 2026.
Outlook
Management reiterated its focus on multi-brand, multi-channel expansion, continued product innovation, AI-enabled operations and disciplined M&A, while maintaining a stable dividend policy and strong cash position.