China Foods (506) investor relations material

Executive summary

• Revenue for H1 2026 reached RMB12.76 billion, up 4.0% year-over-year, with sales volume rising 9.6% to 810 million unit cases, driven by channel expansion and product mix optimization.

• Net profit increased 8.0% year-over-year to RMB1.06 billion, with net profit margin improving by 0.3ppt to 8.3%.

• Gross profit margin declined by 1.4ppt to 36.7% due to lower average selling prices, but cost controls and reduced sales expense rate offset margin pressure.

• Maintained strong cash position with RMB5.90 billion in cash and no interest-bearing borrowings.

• Expanded new retail and smart retail platforms, accelerating growth in non-Coca-Cola and nutritional health product lines.

Financial highlights

• Revenue: RMB12.76 billion (+4.0% YoY); sales volume: 810 million unit cases (+9.6% YoY).

• Net profit: RMB1.06 billion (+8.0% YoY); net profit margin: 8.3% (+0.3ppt YoY).

• Gross profit: RMB4.68 billion; gross margin: 36.7% (-1.4ppt YoY).

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

• Distribution and selling expense margin decreased by 1.7ppt to 24.6%.

Outlook and guidance

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

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

• Anchored in digital transformation, AI-driven operations, and full implementation of the 15th Five-Year Plan.

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

• Focus remains on high-quality growth, value-for-money, and health-oriented consumption trends.