Yihai International (1579) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 rose 14.3% year-over-year to RMB3,346.7 million, with net profit up 20.3% to RMB396.0 million, driven by strong growth in third-party and overseas channels.

• Gross profit margin improved to 33.6% from 29.5% due to lower raw material prices, higher production efficiency, and reduced discount-related expenses.

• The Group continued to expand its product portfolio, launching over 80 new products and optimizing its overseas and e-commerce channels.

• Strong growth in third-party overseas channels (up 46.8%) and robust performance in hot pot condiments and ready-to-eat food products.

Financial highlights

• Revenue: RMB3,346.7 million (+14.3% YoY); Net profit: RMB396.0 million (+20.3% YoY); Basic EPS: RMB38.72 cents (+21.4% YoY).

• Gross profit: RMB1,123.1 million (+29.8% YoY); Gross margin: 33.6% (up from 29.5%).

• Operating profit: RMB547.2 million (+27.1% YoY); Profit before tax: RMB563.2 million (+25.1% YoY).

• Interim dividend declared: HK$0.4188 (RMB0.3623) per share.

• Cash and cash equivalents: RMB1,750.4 million as of 30 June 2026.

Outlook and guidance

• Focus remains on channel building, product R&D, and overseas expansion, with digital and AI-driven enhancements to channel operations and product development.

• Plans to deepen direct sales in Southeast Asia and expand distribution in other overseas markets.

• Continued investment in product innovation, especially for KA and business-end channels, and preparation for peak hot pot season.

• Continued search for strategic investments to support growth.