Blue Moon Group (06993.HK) narrows loss by over 56%: Improving operations and deepening value focus to initiate a new growth cycle

In 2025, amid overall pressure across the consumer sector and a slowdown in growth for many brands, Blue Moon Group (06993.HK) delivered an annual report marked by “stability, momentum, and innovation” against the trend. Not only did it successfully validate its growth logic of “trading short-term losses for long-term barriers,” but it also released clear signals of a fundamental rebound. This suggests the company is accelerating toward a profitability turning point and entering a new cycle of high-quality development.

I. Narrowing the loss and proving operational resilience, with a new growth curve opening up growth boundaries

(1) The “stability” operating base continues to be strengthened.

First, from the revenue side: in 2025, the company achieved revenue of HK$8.41B. Its three major business segments showed a growth pattern of “one body stabilizing and two wings driving.” Among them, the garment care and cleaning business achieved revenue of HK$7.4B, continuing to play the role of a ballast. The personal care cleaning and home cleaning care two segments accelerated their volume expansion, achieving revenue of HK$578 million and HK$430 million, up 12.8% and 3.3% respectively, forming new growth momentum for performance.

By end-2025, total bank deposits and cash were approximately HK$3.72B, and the current ratio was approximately 4.16x. The company also continued to have zero borrowings. With ample cash reserves and strong liquidity, it has built sufficient momentum for subsequent high-quality development. With a sound financial position, the company continued its stable dividend policy as a positive return to shareholders. The board of directors recommended a final dividend of HK$10.0 cents per share.

(2) The “momentum” in profitability is clearly accelerating.

On the profitability front, in 2025 the company’s loss attributable to shareholders narrowed significantly by 56.1% to HK$329 million. The gross margin remained stable at around 59.7%, and overall earnings quality improved notably. On the one hand, this reflects that the company’s earlier strategic investments—such as product promotion and channel development—began to deliver returns in this period. On the other hand, it also shows that the cost-control and lean management strategies have been effective, enabling operating leverage to be released. During the reporting period, the company’s selling and distribution expenses decreased 11.5% year over year, while general and administrative expenses decreased 12.8% year over year; the expense structure was clearly optimized.

Looking at the longer time frame, the logic behind the company’s profit improvement remains clear: on the revenue side, it relies on product innovation, knowledge marketing, and accelerated integration across all channels to drive deeper market penetration of “full-scenario home cleaning solutions.” On the cost side, by improving operating efficiency and optimizing expense management, it continues to dilute marginal costs. As a result, the improvement in profitability has strong sustainability.

(3) The “innovation” growth curve keeps opening up.

On the business front, Blue Moon displays characteristics of “upgrading existing product lines + opening new growth curves.” During the reporting period, the company continued to promote the market penetration of the premium “concentrated +” laundry detergent series. At the same time, it also rolled out niche best-selling categories such as laundry detergent specifically for underwear, disinfecting and odor-removing laundry detergent, and active sports laundry detergent, winning broad recognition from consumers and the industry. It is understood that Blue Moon Supreme Bio-Technology Laundry Detergent, thanks to features such as dissolving in water in 1 second, precise cleaning for 8 items with 1 pump, and concentrated and efficient performance, has continued to receive positive feedback. Since its launch, the cumulative favorable rate has been maintained at over 98%.

Worth noting is that the personal care business is growing into the company’s second growth curve. In 2025, Blue Moon launched a new product in the personal care segment—Net Enjoy Foam Bathing Gel Moisturizing Type—continuing to enrich the personal care product matrix. This product incorporates technologies such as micron-level foam and multiple amino acid-based surfactant actives. Its average water-retention rate exceeds 98% and can be adapted to moisturizing needs across all seasons, strengthening the company’s product competitiveness in personal care.

In addition, by coordinating with CCTV News to create themed events and leveraging the star power of endorser Tan Jianci to empower product promotion, it achieved a double breakthrough in both brand visibility and product sales. It is understood that the co-branded gift box of the endorser ranked No. 1 on the shower-product sales charts of multiple major e-commerce platforms on the day of its release. In 2025, the company’s personal care business revenue increased 12.8% year over year to HK$578 million, the fastest growth among its three major business segments.

II. Knowledge marketing strengthens brand momentum, and omnichannel integration improves reach efficiency

At the strategic level, the company listed “achieving full-channel coverage of concentrated laundry detergent and other new products” as one of its core strategy expenditure items. It continued to deepen its knowledge marketing layout, amplify brand momentum, and—backed by an integrated online-and-offline, multi-touch, fully covered channel matrix—accelerate consumer reach.

In 2025, Blue Moon held more than 380 immersive experience events throughout the year under “Supreme Clean Journey.” Through formats such as visiting the Laundry Science and Technology Museum, face-to-face exchanges with experienced laundry scientists, and participating in hands-on teaching, it continuously conveyed the scientific concept of laundry cleaning, enhancing consumers’ recognition and trust in product functions and brand value.

Meanwhile, the company built a brand IP called “Incredible Future Laundry Technology,” using diverse communication formats such as music MV, creative micro-short dramas, and lightweight micro-variety shows, further strengthening emotional connections with Generation Z.

On the channel front, the company accelerated the integration of online and offline omnichannel operations. In 2025, the sales generated by Blue Moon’s online channel sales and the sales produced through offline distributors were basically stable compared with the same period last year. Looking to the future, Blue Moon also stated in its annual report that it will focus on optimizing product mix in online channels, improve the efficiency of precise targeting, and strengthen penetration into social e-commerce and emerging platforms. For offline channels, it will implement refined distributor management, strengthen channel sink-in to lower-tier regions, and increase both regional coverage breadth and terminal execution efficiency, thereby achieving more precise outreach to target customer groups and higher-efficiency conversions.

Against a broader macro backdrop, in 2026 total consumer spending will continue to expand steadily, but the consumption structure is showing clear divergence. In particular in the home cleaning and care area, consumer demand is no longer limited to “functional stain removal,” and instead has further evolved into comprehensive needs that include usage experience, ingredient safety, energy and water savings, and green attributes.

Upgraded consumer demand is forming resonance with policy direction. In the 2026 Government Work Report, the government continues to list expanding domestic demand and promoting consumption as key tasks, proposing measures such as deeper implementation of special actions to boost consumption, to continuously strengthen the domestic circulation. Meanwhile, during the “15th Five-Year Plan to 2025” period, the green development direction will also continue to be deepened. Efforts will keep pushing forward tough pollution prevention campaigns, and accelerate the formation of green production and living practices, ensuring the carbon peak target is achieved as scheduled.

This aligns closely with Blue Moon’s forward-looking planning around concentrated laundry detergent, saving water and electricity, green packaging, and digitalized manufacturing. With multiple positive resonances—such as the release of policy dividends, enhanced recovery in domestic demand, and deeper consumer demand segmentation—Blue Moon’s forward-looking strategic layout is expected to deliver more fully on value. It will move into a high-quality development path marked by profitability release and valuation improvement, continuing to create long-term value for investors.