Huabao International Holdings (336) H1 2026 earnings summary

Executive summary

• Revenue rose 15.9% year-over-year to RMB1.88 billion for the six months ended 30 June 2026, with strong growth in condiment (+29.9%), Huabao Technology (+20.4%), and aroma raw materials (+14.9%) segments, while tobacco raw materials declined 16.4% due to geopolitical factors.

• Gross profit increased 8.8% to RMB766 million, but gross margin declined to 40.8% from 43.4% due to product mix and competition.

• Operating profit rose 17.4% to RMB143 million; adjusted (Non-HKFRS) operating profit up 19.2% to RMB232 million, reflecting improved core profitability.

• Net profit attributable to equity holders fell 11.7% to RMB104 million, mainly due to lower finance income and other gains.

• Interim dividend of HK1.2 cents and special dividend of HK4.08 cents per share declared.

Financial highlights

• Revenue: RMB1,878 million (+15.9% YoY); Gross profit: RMB766 million (+8.8% YoY); Gross margin: 40.8% (down 2.6pp YoY).

• Operating profit: RMB143 million (+17.4% YoY); Operating margin: 7.6%.

• Net profit: RMB124 million (+3.3% YoY); Net profit attributable to equity holders: RMB104 million (-11.7% YoY).

• Adjusted EBITDA: RMB412 million (+12.5% YoY); Adjusted operating profit: RMB232 million (+19.2% YoY).

• Basic and diluted EPS: RMB3.23 cents (vs. RMB3.66 cents YoY).

Outlook and guidance

• Focus on internationalization, health industry, innovative tobacco, and high-potential customers.

• Continued investment in R&D, digital transformation, and overseas capacity expansion.

• Management expects to maintain growth momentum and enhance core competitiveness through technology-driven innovation and lean management.