Natural Food International Holding Limited (NATURAL FOOD IH) reported solid interim results for the six months ended 30 June 2026, converting 20 years of brand equity into stronger earnings momentum. Revenue increased 27.8% year on year to RMB 1.45 billion, driven by balanced growth across offline and online channels.

Gross profit rose 24.0% to RMB 921.61 million; however, gross margin eased to 63.6% from 65.5% a year earlier as higher volumes lifted cost of sales by 34.9%. Effective cost control in other areas supported operating leverage: selling and distribution expenses grew 19.8%, well below the top-line pace, and administrative expenses remained broadly flat.

Profit before tax advanced 49.8% to RMB 188.42 million, while net profit attributable to shareholders climbed 46.0% to RMB 155.90 million. Net margin improved 1.4 percentage points to 10.8%. Basic and diluted earnings per share both rose to RMB 0.072 (1H 2025: RMB 0.049). The board declared no interim dividend.

Channel mix stayed balanced. Offline revenue grew 28.5% to RMB 874.98 million (60.4% of total), with supermarket counters up 12.3% to RMB 530.18 million and the higher-margin offline shelf segment surging 65.2% to RMB 344.80 million. Online sales via e-commerce and WeChat member stores added 26.6% to RMB 574.68 million, accounting for 39.6% of group turnover.

Working-capital metrics continued to strengthen. Trade receivables fell to RMB 242.55 million, cutting receivable days to 33 from 36. Inventories nearly halved to RMB 85.28 million, trimming inventory days to 43 from 53. Trade payables days improved to 38 from 51.

The balance sheet remains debt-light and highly liquid. Cash, cash equivalents and time deposits totaled RMB 1.27 billion at period-end, up 3.5% from year-end 2025, while lease liabilities accounted for just 0.3% of total assets. Net current assets stood at RMB 1.34 billion. Capital commitments amounted to RMB 12.6 million, mainly for plant and equipment.

Looking ahead, management intends to deepen its “medicine-and-food homology” strategy, accelerate functional product innovation and continue optimizing its omnichannel footprint, particularly in membership-store partnerships and interest-based e-commerce. No significant post-balance-sheet events were reported.