Huabao International Holdings (Huabao Intl) reported H1 2026 revenue of RMB 1.88 billion, a 15.9% year-on-year increase. Gross profit rose 8.8% to RMB 0.77 billion, while operating profit grew 17.4% to RMB 0.14 billion. Net profit edged up 3.3% to RMB 0.12 billion, with earnings per share at RMB 3.23 cents.
The board declared an interim cash dividend of HK 1.20 cents per share and lifted the special dividend to HK 4.08 cents, payable on 8 October 2026 to shareholders on record 18 September 2026.
Segment performance diverged:
• Huabao Technology (flavours, food ingredients, nutrition & health, scent & care) delivered revenue of RMB 0.72 billion, up 20.4%, contributing 38.2% of group turnover; segment profit jumped to RMB 0.11 billion.
• Condiments climbed 29.9% to RMB 0.50 billion, with segment profit up 22.5% to RMB 0.05 billion, reflecting the first full-half consolidation of recently acquired Jiafu.
• Aroma Raw Materials increased 14.9% to RMB 0.47 billion, though segment profit fell 38.4% to RMB 0.04 billion on price pressure and higher costs.
• Tobacco Raw Materials declined 16.4% to RMB 0.20 billion; segment profit dropped 86.7% to RMB 4.16 million due to geopolitical disruptions and domestic demand shifts.
Operating cash flow was RMB 93.40 million (H1 2025: RMB 214.06 million). Cash and bank balances stood at RMB 4.29 billion; net cash (cash minus borrowings) remained positive.
During the period Huabao Intl repurchased 6.29 million shares on the Hong Kong market for HK 24.11 million, later cancelled. The group’s debt-to-equity ratio declined to 1.1% (31 December 2025: 1.3%).
Two equity incentive plans remain in place: the 2024 Share Option Scheme with 147.07 million options outstanding (exercise price HK 3.95) and the 2025 Huabao Technology Share Incentive Scheme covering 18.10 million restricted A-shares.
Looking ahead, management will continue to prioritise international expansion, health-sector growth, innovative tobacco materials and digital transformation while maintaining a prudent capital structure.