Health and Happiness (H&H) International (1112) Q1 2026 TU earnings summary

Executive summary

• Q1 2026 revenue rose 34.4% year-over-year to RMB 4.26 billion, with all business segments showing broad-based growth and meaningful market share gains in core categories.

• High-margin nutritional supplements accounted for nearly 60% of total revenue, with strong growth in vitamin, herbal, mineral, pediatric, and pet supplements.

• Growth was supported by Chinese New Year phasing and a temporary surge in IMF business due to external industry developments.

• ANC and BNC segments delivered particularly strong growth, with Swisse and Biostime gaining share.

Financial highlights

• Group revenue grew 34.4% year-over-year to RMB 4.26 billion in Q1 2026.

• Nutritional supplements revenue grew 23.7% year-over-year; infant formulas surged 71.8%.

• ANC segment revenue increased 26.3% year-over-year; BNC segment up 60.9%.

• Cash reserves exceeded RMB 2.1 billion, with gross debt reduced by over RMB 300 million since December 2025.

• Operating cash flow conversion remained strong, targeting at least 90% EBITDA to pre-tax operating cash flow.

Outlook and guidance

• Maintains 2026 guidance, expecting nutrition supplements to track industry growth and IMF business to outperform the market.

• Focus on innovation, channel expansion, and high-margin product segments across regions and platforms like Douyin and new retail.

• Anticipates moderation in growth momentum as short-term demand spikes fade, but remains confident in achieving full-year objectives.

• Plans to reduce gross debt by at least RMB 700 million and pay out RMB 200 million in dividends for 2026.

• Continued investment in marketing and new product launches, including HMO IMF in April 2026.