Shares of BAMA TEA (06980) climbed more than 15% in Hong Kong trading on Thursday, last up 14.85% at HK$29.86 with turnover reaching HK$8.99 million.

The surge followed the company's release of its 2026 interim results, which showed revenue of RMB 1.4015 billion, a year-on-year increase of 31.8%, and profit attributable to equity shareholders of the company at RMB 198 million, up 65.3% from the same period last year.

Tea products remain the company's primary revenue driver, with first-half revenue growing 34.5% compared to the prior-year period, a notable acceleration. Growth was particularly strong across tea combination packs, oolong tea, and black tea categories.

Gross margin for the period stood at 54.6%, down 0.7 percentage points year-on-year. The decline was attributed to higher transportation and warehousing costs, which increased at a faster pace than revenue growth and subsequently weighed on overall profitability.

As of the end of June, BAMA TEA operated 3,845 stores, an increase of 260 stores year-on-year. Of these, 3,619 were franchise outlets and 226 were directly operated stores.