Huabao International Holdings (336) H2 2025 earnings summary

Executive summary

• Revenue increased by 3.3% year-over-year to RMB3,485 million, driven by international expansion and segment growth, despite a challenging macro environment and domestic market pressures.

• Operating cash flow increased by 21.5% to RMB826 million, reflecting improved efficiency and profitability during a strategic transition.

• Strategic M&A and digital transformation initiatives supported industrial integration and enhanced shareholder returns, including a 16.5% increase in annual dividends, a share buyback plan, and a proposed special dividend of HK5.5 cents per share.

• Gross profit margin declined to 40.8% from 42.7% due to competitive pressures and product mix changes.

• Major acquisitions included Jiapin Technology, Jiangsu Jiafu, and increased shareholding in Amber (Xiamen), strengthening the Group’s presence in natural meat extracts and condiments.

Financial highlights

• Total revenue reached RMB3,485 million (+3.3% YoY); gross profit margin was 40.8%, down 1.9 percentage points.

• Operating loss narrowed by 10.2% to RMB361 million; net loss attributable to owners was RMB389 million (flat YoY).

• Adjusted operating profit before tax was RMB297 million (-12.9% YoY), but excluding one-off impairments, adjusted pre-tax profit was RMB439 million.

• Net cash from operating activities rose 21.5% to RMB826 million; net cash position stood at RMB6,188 million; asset/liability ratio was a low 1.3%.

• Basic loss per share: RMB12.04 cents.

Outlook and guidance

• Focus on high-quality internationalisation, innovation-led technology, lean management, and global footprint.

• Plans to expand overseas production capacity, deepen integration with top-tier customers, and advance smart kitchen and health & wellness initiatives.

• Strategic initiatives include cost reduction, procurement optimisation, and enhanced collaboration across subsidiaries.

• Continued investment in R&D, digital transformation, and expansion in health, tobacco, and condiment sectors.