Huabao International reported consolidated revenue of RMB 1.88 billion for the six months to 30 June 2026, a year-on-year increase of 15.9%. Gross profit rose 8.8% to RMB 0.77 billion, although the gross margin narrowed to 40.8% from 43.4% on intensified competition and product-mix changes.

Operating profit advanced 17.4% to RMB 0.14 billion, lifting the operating margin slightly to 7.6%. Profit before tax fell 6.0% to RMB 0.17 billion as finance income more than halved. Net profit edged up 3.3% to RMB 0.12 billion, while profit attributable to equity holders declined 11.7% to RMB 0.10 billion. On a non-HKFRS basis, which excludes share-based compensation, net profit increased 10.4% to RMB 0.21 billion.

Segment performance • Huabao Technology (flavours, nutrition & health, scent & care): revenue RMB 717.3 million, up 20.4%; operating profit RMB 105.8 million versus RMB 18.8 million a year earlier, driven by overseas demand and new customers. • Condiments: revenue RMB 495.8 million, up 29.9%; operating profit RMB 47.7 million, up 22.5%, boosted by the first full-period consolidation of Jiangsu Jiafu. • Aroma Raw Materials: revenue RMB 465.6 million, up 14.9%; operating profit RMB 38.0 million, down 38.4% on price pressure and higher input costs. • Tobacco Raw Materials: revenue RMB 199.3 million, down 16.4%; operating profit RMB 4.2 million, reflecting geopolitical disruptions and domestic demand shifts.

Cash flow & balance sheet Cash and bank balances stood at RMB 4.29 billion with a further RMB 1.58 billion in wealth-management products. Total borrowings were trimmed to RMB 0.13 billion, keeping gearing at 1.1%. Net cash from investing activities reached RMB 1.28 billion, mainly from wealth-management maturities.

Dividends The Board declared an interim dividend of HK 1.2 cents and a special dividend of HK 4.08 cents per share, payable on 8 October 2026 to shareholders on record as of 18 September 2026.

Operational highlights The group advanced its digital transformation, commissioned AI-driven quality-control systems, and continued capacity build-outs in Indonesia and other regions. R&D spending reached RMB 142.93 million, with focus on natural flavour technology, innovative tobacco materials and health-oriented ingredients.

Outlook Management plans to prioritise international expansion, health-related ingredients and innovative tobacco materials while maintaining a disciplined capital structure.