Hengan International Reports Steady Growth in 2025 Annual Results

Hengan International has announced its financial results for the year ended December 31, 2025, highlighting steady revenue growth and improved profitability despite a competitive market environment.

The Group reported total revenue of RMB 23.07 billion, representing a year-on-year increase of approximately 1.8%. Gross profit rose by 6.6% to RMB 7.81 billion, while operating profit increased by 3.9% to RMB 3.48 billion. Profit attributable to shareholders grew notably by 10.3% to RMB 2.54 billion. Basic earnings per share reached RMB 2.227.

The Board of Directors declared a final dividend of RMB 0.70 per share. Combined with the interim dividend already distributed, total dividends for the year amount to RMB 1.40 per share.

Tissue Business Drives Growth

The Group’s tissue business remained a key growth driver, with revenue rising 5.6% year-on-year to RMB 14.17 billion, accounting for 61.4% of total revenue. Growth was supported by an increasing share of high-end products and strong performance across e-commerce and new retail channels.

Wet wipes recorded the fastest growth within the segment, with sales surging 30.0% to RMB 1.58 billion, reflecting the Group’s successful expansion of its diversified product portfolio.

Sanitary Products Face Market Pressure

Revenue from the sanitary products segment declined by 5.3% to RMB 6.57 billion, representing 28.5% of total revenue. The decrease was mainly due to intensified competition and increased promotional activities, particularly on e-commerce platforms.

However, performance in offline channels showed gradual recovery, supported by strong demand for premium product lines. Stable raw material prices and improved product mix partially offset the impact of declining sales and higher marketing expenses.

Expanding Channels and Premium Strategy

Hengan continued to strengthen its omnichannel strategy, with e-commerce and new retail sales increasing by 10.1% year-on-year, contributing 36.9% of total revenue. These channels accounted for 42.1% of tissue sales and 36.0% of hygiene product sales.

The Group also made progress in developing instant retail channels to meet evolving consumer demands for convenience and rapid replenishment of daily necessities.

Outlook for 2026

Looking ahead, Hengan expects market competition to remain intense. The Group will continue to focus on increasing the penetration of high-end products, optimizing channel strategies, and enhancing product innovation.

By improving production efficiency, expanding capacity, and strengthening its brand positioning, Hengan aims to capture growth opportunities in the domestic tissue and hygiene products market while reinforcing its industry leadership.