Executive Summary
Shanshan Brand Management reported QQ2 2025 revenue of 425.21 million CNY, up 60.17% year over year, signaling strong demand recovery and brand momentum in the domestic market. Gross profit reached 179.07 million CNY, delivering a gross margin of 42.11%, aided by favorable product mix and pricing discipline. EBITDA was 25.90 million CNY and operating income stood at 16.19 million CNY, for an operating margin of 3.81%. Net income was 12.07 million CNY, with a net margin of 2.84% and basic earnings per share of 0.0904 CNY. The company maintains a generous payout policy (dividend payout ratio of 88%), translating to an approximate dividend yield of 8.9%, which is attractive to income-focused investors but may constrain reinvestment capacity in a growth-phase franchise.
Key Performance Indicators
Key Insights
Revenue: 425,213,042 CNY; YoY +60.17%; QoQ 0.00%
Gross Profit: 179,067,358 CNY; Gross Margin 42.11%; YoY +96.35%
EBITDA: 25,898,274 CNY; EBITDA Margin 6.09%
Operating Income: 16,188,582 CNY; Operating Margin 3.81%; YoY +3.91%
Net Income: 12,068,316 CNY; Net Margin 2.84%; YoY +20.90%
EPS: 0.0904 CNY; YoY +20.86%
SG&A / Operating Expenses: 162,878,776 CNY (SG&A); 18,719,190 CNY (G&A); 147,596,944 CNY (Selling & Marketing)
Income Tax Expense: 3,644,182 CNY; Effective Tax Rate ~23.22...
Financial Highlights
Revenue: 425,213,042 CNY; YoY +60.17%; QoQ 0.00%
Gross Profit: 179,067,358 CNY; Gross Margin 42.11%; YoY +96.35%
EBITDA: 25,898,274 CNY; EBITDA Margin 6.09%
Operating Income: 16,188,582 CNY; Operating Margin 3.81%; YoY +3.91%
Net Income: 12,068,316 CNY; Net Margin 2.84%; YoY +20.90%
EPS: 0.0904 CNY; YoY +20.86%
SG&A / Operating Expenses: 162,878,776 CNY (SG&A); 18,719,190 CNY (G&A); 147,596,944 CNY (Selling & Marketing)
Income Tax Expense: 3,644,182 CNY; Effective Tax Rate ~23.22%
Liquidity: Current Ratio 1.233; Quick Ratio 0.684; Cash Ratio 0.134
Working Capital Metrics: DSO 42.41 days; DIO 88.56 days; DPO 41.91 days; Cash Conversion Cycle ~89.06 days
Profitability & Returns: Gross Margin 42.11%; Operating Margin 3.81%; Pretax Margin 3.70%; Net Margin 2.84%
Efficiency: Asset Turnover 0.563; Inventory Turnover 1.016; Receivables Turnover 2.12
Leverage & Capitalization: Debt Ratio 0.25; Debt/Equity 0.68; Long-Term Debt to Capitalization 0.077; Total Debt to Capitalization 0.405
Returns on Capital: ROA 1.60%; ROE 4.35%; ROCE 5.15%
Valuation: P/E 2.47; P/BV 0.429; P/S 0.280; EV/EBITDA 9.61; Dividend Yield 8.91%
Notes: Operating Cash Flow per Share and Free Cash Flow per Share are reported as 0, indicating no disclosed per-share cash flow in QQ2 2025. Net cash flow visibility remains a key area to monitor.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
425.21M |
60.17% |
0.00% |
| Gross Profit |
179.07M |
96.35% |
0.00% |
| Operating Income |
16.19M |
3.91% |
0.00% |
| Net Income |
12.07M |
20.90% |
0.00% |
| EPS |
0.09 |
20.86% |
0.00% |
Key Financial Ratios
operatingProfitMargin
3.81%
Management Commentary
No earnings-call transcript data were provided in the input. Consequently, management quotes, strategic commentary, and thematic summaries from the QQ2 2025 call could not be extracted.
Forward Guidance
No explicit forward guidance was disclosed in the provided data. Investors should monitor: (1) sustainability of the revenue uptick (YoY +60.2%) and whether it translates into meaningful cash generation; (2) brand licensing/sublicensing opportunities that could unlock additional margin and revenue without heavy capex; (3) the pace of SG&A normalization as the scale of operations evolves; (4) working capital management given a CCC of ~89 days and inventory turnover around 1.02x. If management articulates a clear path to converting earnings into free cash flow and a stable margin trajectory, the stock could re-rate from its currently low earnings multiple.