Health and Happiness (H&H) International (1112) H1 2026 earnings summary

Executive summary

• Revenue rose 23.9% year-over-year to RMB8,695.9 million in H1 2026, with all business segments and geographies contributing to growth.

• Adjusted EBITDA surged 71.9% to RMB1,891.9 million, with margin improving to 21.8% from 15.7% a year earlier.

• Net profit increased sharply to RMB610.6 million from RMB71.0 million, while adjusted net profit reached RMB919.2 million.

• High-margin nutritional supplements contributed 60.2% of total revenue.

• Interim dividend of HKD0.82 per share declared, representing about 50% of adjusted net profit.

Financial highlights

• Gross profit rose 29.5% to RMB5,686.0 million; gross margin improved to 65.4% from 62.5%.

• Adjusted EBITDA margin reached 21.8%, and adjusted net profit margin improved to 10.6%.

• Selling and distribution expense ratio reduced by 3 percentage points, and administrative expenses ratio decreased to 5.1%.

• Finance costs dropped 46.2% to RMB311.9 million, reflecting deleveraging and lower interest expenses.

• Cash and cash equivalents at period end: RMB1,976.5 million, with undrawn credit lines over RMB1.26 billion and $20 million available.

Outlook and guidance

• Upgraded 2026 guidance: group NSR growth to mid-to-high teens, EBITDA margin to mid-to-high teens.

• Continued growth expected in high-margin nutritional supplements and IMF, with focus on product innovation, channel expansion, and market leadership.

• ANC segment guidance raised to low-teens growth, BNC to over 30% growth, PNC to high single-digit growth.

• Dividend payout expected to remain at 50% for the full year.

• Ongoing commitment to deleveraging, liquidity, and financial resilience.