China Boton Group Company Limited released unaudited interim results for the six months ended 30 June 2026.

Financial Highlights • Revenue rose 25.3% year on year to RMB798.84 million (≈ 0.80 billion). • Gross profit increased 17.2% to RMB233.14 million; gross margin narrowed to 29.2% from 31.2%. • Operating profit advanced 13.3% to RMB38.21 million, yet net profit attributable to shareholders fell to a loss of RMB29.96 million; total net profit for the period dropped 74.5% to RMB2.22 million. • Basic loss per share widened to RMB0.03 versus RMB0.01 a year earlier. • No interim dividend was declared.

Segment Performance (external revenue) • e-Cigarette Products: RMB422.45 million (+58.1% YoY), accounting for 52.9% of group revenue. • Tobacco Flavors: RMB165.24 million (-7.9%), 20.7% share. • Food Flavors: RMB115.64 million (+24.3%), 14.5% share. • Fine Fragrances: RMB77.15 million (+5.5%), 9.6% share. • Investment Properties: RMB18.36 million (-26.2%), 2.3% share.

Cost & Expenses Total cost of sales, selling & marketing, and administrative expenses climbed 25.8% to RMB766.98 million, driven by higher raw-material usage (+31.0%) and depreciation/amortisation (+43.8%). Selling and marketing costs rose 34.6% to RMB33.51 million, while administrative expenses grew 14.7% to RMB167.77 million. Net finance costs increased 17.6% to RMB26.91 million due to exchange losses.

Balance Sheet & Liquidity • Total assets: RMB6.77 billion (31 Dec 2025: RMB6.80 billion). • Equity attributable to owners: RMB2.02 billion (-3.9% from year-end). • Cash and cash equivalents plus restricted cash: RMB1.57 billion. • Total borrowings fell to RMB1.16 billion from RMB2.20 billion; debt-to-equity ratio improved to 48.3% (31 Dec 2025: 92.1%). • Reported net current liabilities of RMB322.14 million reflect RMB2.49 billion land-resumption compensation temporarily booked as other payables; adjusting for this item, net current assets stand at roughly RMB2.05 billion and the current ratio at 3.41.

Key Corporate Developments • Shenzhen Land Resumption: Compensation of RMB2.49 billion fully received; transaction completed in July 2026 and recorded as a current payable at period-end. • M&A: On 30 June 2026, subsidiary Boton (Shanghai) Bio-tech agreed to acquire 100% of Shanghai Longyin Biotechnology for RMB240.00 million; RMB160.00 million paid by August 2026. Completion pending registration. • Share Buy-back: 5.57 million shares repurchased during May–June 2026 for HK$12.99 million; held as treasury shares. • Litigation: Multiple ongoing cases related to the 2016 Kimree acquisition; RMB150.00 million payable accrued.

Outlook Management will prioritise regulatory compliance in e-Cigarette operations, continue investing in product innovation, and diversify markets. Proceeds from the Shenzhen land compensation and reduced leverage offer flexibility for R&D expansion and potential investments.