Hengan reports 10.3pc increase in net profit

Hygiene products maker Hengan International (1044) saw its net profit increase 10.3 percent to 2.54 billion yuan(HK$2.86 billion) last year, according to a filing published on Tuesday.

A final dividend of 0.7 yuan per share was proposed by the company.

Its total revenue stood at 23.07 billion yuan, up 1.8 percent year-on-year. Revenue from its core business segments, including tissue and hygiene products, grew 1.9 percent to 20.74 billion yuan.

Driven by growth in tissue paper sales, which effectively offset the decline in hygiene product sales and higher promotional expenses, the company's gross profit rose about 6.6 percent to 7.81 billion yuan.

Besides, gross profit margin increased from 32.3 percent to 33.8 percent.

Hengan expects that operating pressures will persist in 2026, but the steady increase in tissue paper sales is expected to continue strengthening profitability resilience. 

It mentioned that the group will maintain stable revenue through optimising omni-channel sales efficiency, product upgrades, and appropriate allocation of promotional expenses.