Nongfu Spring (9633) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB29,718 million, up 16.0% year-over-year, with gross profit of RMB18,099 million, up 17.1% year-over-year and a gross margin of 60.9% (up 0.6 ppt).

• Net profit attributable to shareholders was RMB8,887 million, up 16.6% year-over-year; basic and diluted EPS was RMB0.790.

• The company celebrated its 30th anniversary, emphasizing long-term value, product innovation, and social responsibility, with major marketing campaigns and product relaunches.

• No interim dividend declared for H1 2026; a final dividend of RMB0.99/share for FY2025 (RMB11,134 million) was paid in August 2026.

• Packaged drinking water accounted for 32.4% of revenue, tea beverages 44.2%, functional drinks 11.3%, juice beverages 9.8%, and other products 2.3%.

Financial highlights

• Selling and distribution expenses rose 16.6% to RMB5,843 million, representing 19.7% of revenue; administrative expenses increased 5.3% to RMB1,125 million, or 3.8% of revenue.

• Other income and gains were RMB857 million (+6.1%), mainly from increased investment returns; other expenses rose to RMB222 million, mainly due to RMB180 million in FX losses.

• Finance costs were RMB29 million, up slightly from RMB25 million.

• No significant investments, acquisitions, or disposals during the period.

• Basic earnings per share were RMB0.790, up 16.7% year-over-year.

Outlook and guidance

• The company will continue to focus on long-term, sustainable growth, leveraging its 17 premium water sources, product innovation, and supply chain strength.

• Emphasis remains on natural, healthy, and low-sugar products to meet evolving consumer preferences.

• The beverage industry in China is expected to see continued transformation, with health, functionality, and diversification as key trends.

• The company aims for stable, long-term growth and value creation for consumers.