Pou Sheng International (03813) released unaudited results for the six months ended 30 June 2026. Revenue edged down 2.1% year on year to RMB 8.96 billion, while profit attributable to shareholders rose 29.9% to RMB 243.65 million on tighter expense control and improved operating efficiency.

Gross profit slipped 0.9% to RMB 3.04 billion, yet gross margin improved 0.4 ppt to 33.9% as the company curtailed discounting and optimised inventory. Operating profit increased 23.6% to RMB 347.97 million, lifting the operating margin to 3.9% (2025: 3.1%). Basic EPS climbed 29.8% to RMB 4.70 cents.

Selling and distribution expenses fell 3.7% to RMB 2.42 billion, and administrative expenses declined 7.6% to RMB 352.76 million, jointly representing 30.9% of revenue versus 31.6% a year earlier. Finance costs dropped 22.0% to RMB 21.91 million, mainly due to lower lease-related interest.

Cash flow and balance sheet remained solid. Net cash generated from operations reached RMB 945.10 million, pushing total cash and bank deposits to RMB 2.16 billion, up 18.7% from end-2025. The group reported no bank borrowings, leaving gearing at zero and a net cash position of RMB 2.16 billion. Inventories decreased 7.0% to RMB 4.67 billion, while inventory aged over 12 months accounted for less than 9% of total stock. Average inventory turnover lengthened slightly to 148 days (H1 2025: 146 days). Trade receivables turnover was 18 days and trade payables turnover 11 days.

Capital expenditure was contained at RMB 96.30 million (H1 2025: RMB 119.40 million), aligned with the selective approach to new store openings and ongoing digital upgrades. Net assets stood at RMB 9.11 billion.

The board declared an interim dividend of HK$0.016 per share and a special dividend of HK$0.016 per share, totalling HK$0.032 and representing a 60% payout ratio. The record date is 16 September 2026, with payment scheduled for 9 October 2026.

Management highlighted continued focus on inventory discipline, expense control and digital transformation, alongside expansion of multi-brand outlet formats and deeper penetration into lower-tier cities.