Foshan Haitian Flavouring and Food Company (603288) Q2 2026 earnings summary

Executive summary

• Achieved record-high revenue of RMB 16.15 billion in H1 2026, up 6.01% year-over-year; net profit attributable to shareholders reached RMB 4.19 billion, up 7.13% year-over-year.

• Core product lines (soy sauce, oyster sauce, seasoning sauces) contributed 77% of revenue, all maintaining growth; health and organic series grew 27.09% year-over-year.

• Gross margin improved to 41.04%, up 0.92 percentage points year-over-year, driven by digitalization and AI-enabled efficiency gains.

• Online channel revenue rose 15.45% year-over-year, while offline channels grew 4.81%; international expansion accelerated with new subsidiaries in Korea, Singapore, US, and Malaysia.

Financial highlights

• Operating income: RMB 16.15 billion, up 6.01% year-over-year.

• Net profit attributable to shareholders: RMB 4.19 billion, up 7.13% year-over-year.

• Operating cash flow: RMB 1.22 billion, down 18.52% year-over-year due to increased procurement spending.

• Gross margin: 41.04%, up 0.92 percentage points year-over-year.

• Basic and diluted EPS: RMB 0.72, up 2.86% year-over-year.

Outlook and guidance

• Focus remains on core business, user satisfaction, and high-quality growth.

• Continued investment in R&D (3.02% of revenue) and digital transformation to drive efficiency and product innovation.

• Internationalization strategy deepened with new overseas subsidiaries.

• A+H share buyback program launched, with RMB 65.8 million spent by July 2026.