Shenzhen-based watchmaker HIPINE (Stock Code: 02583) reported an unaudited net profit of RMB99.08 million for the six months ended 30 June 2026, up 75.3% from RMB56.52 million a year earlier. Basic earnings per share rose to RMB1.69 from RMB1.17.
Revenue and Margins • Revenue increased 15.9% year-on-year to RMB333.28 million, led by a 58.0% jump in watch sales to RMB236.70 million. • Gross profit grew 54.2% to RMB138.56 million, lifting gross margin to 41.6% from 31.2%. Management attributed the margin gain to higher watch volumes and cost-control measures.
Business Mix Shifts Toward Own-Brand Model • Own-brand manufacturing (OBM) contributed 74.7% of total revenue, up from 52.8% in the prior-year period. – Offline distributorship sales rose 51.7% to RMB214.07 million. – Retail and online store sales more than tripled to RMB35.02 million. • Original design manufacturing (ODM) revenue fell 38.0% to RMB84.20 million, reflecting a strategic pivot toward higher-margin OBM sales.
Expense Dynamics • Selling expenses climbed 86.9% to RMB16.00 million, or 4.8% of revenue (H1 2025: 3.0%), driven by higher staff costs and e-commerce platform spending. • Administrative expenses doubled to RMB10.72 million, mainly on higher staffing, office and insurance costs. • R&D outlays rose 64.6% to RMB9.06 million, representing 2.7% of revenue.
Balance Sheet and Liquidity • Cash and cash equivalents stood at RMB152.57 million at end-June, down 25.0% from end-2025, while inventories expanded 30.2% to RMB1.10 billion. • Total interest-bearing bank borrowings increased to RMB231.74 million, pushing the net gearing ratio to 21.2% (end-2025: 13.9%). • Net asset value improved 9.6% to RMB1.13 billion.
Capital Expenditure and Standards Leadership Capital spending reached RMB37.0 million, more than double the year-ago level, as HIPINE advanced production capacity and R&D initiatives. The company participated in drafting one new national standard and three industry standards for watch manufacturing and testing, all effective July 2026.
Dividend Proposal The board proposed an interim cash dividend of RMB0.50 per share, totaling approximately RMB29.41 million, subject to shareholder approval at an extraordinary general meeting.
Outlook Management highlighted ongoing initiatives in channel expansion, international market entry, cultural IP collaborations and AI-enabled smart wearables as strategic pillars for future growth. No material post-period events were reported.