China Foods (506) investor relations material

Executive summary

• Revenue for the six months ended 30 June 2026 rose 4.0% year-over-year to RMB12.76 billion, with sales volume up 9.6% to 810 million unit cases.

• Net profit increased 8.0% year-over-year to RMB1.057 billion, and net profit margin improved by 0.3ppt to 8.3%.

• Maintained market leadership in the non-alcoholic ready-to-drink sector, expanded new and smart retail platforms, and accelerated growth in non-Coca-Cola and nutritional health product lines.

Financial highlights

• Gross profit margin declined by 1.4ppt year-over-year to 36.7% due to lower average selling prices.

• Adjusted EBIT rose 5.4% to RMB1,432.9 million; adjusted EBITDA increased 6.0% to RMB1,895.0 million.

• Distribution and selling expenses margin decreased by 1.7ppt to 24.6%, offsetting gross margin pressure.

• Earnings per share were RMB22.28 cents, up from RMB20.66 cents year-over-year.

Outlook and guidance

• Focus on optimizing product portfolio, expanding zero-sugar and Monster product lines, and exploring emerging channels.

• Deepening the structure of three business units: smart retail, online operations, and nutrition & health.

• Anchored in digital transformation and AI-driven operations for future growth.

• Management expects continued macroeconomic challenges but anticipates steady progress and new structural opportunities in the consumer market, focusing on value and health trends.

• Pursuing high-quality growth under the “15th Five-Year Plan,” emphasizing stability, efficiency, innovation, and sustainability.