Natural Food International Holding Limited (Natural Food IH) reported robust interim results for the six months ended 30 June 2026, underscored by double-digit top- and bottom-line growth and a strengthened balance sheet.
Financial Highlights • Revenue reached RMB 1.45 billion, up 27.8% from RMB 1.13 billion a year earlier. • Net profit climbed 46.0% year on year to RMB 155.90 million, lifting net margin by 1.4 ppts to 10.8%. • Gross profit rose 24.0% to RMB 921.61 million; gross margin eased to 63.6% (1H25: 65.5%) as input costs out-paced sales growth. • Selling & distribution expenses increased 19.8% to RMB 700.25 million, chiefly on higher online marketing spend. • Operating cash flow improved to RMB 190.83 million (1H25: RMB 150.29 million). • Cash and bank deposits stood at RMB 1.27 billion; the Group remains debt-free with a 0.3% lease-liability gearing ratio.
Channel Performance • Offline channels generated RMB 874.98 million, advancing 28.5% and accounting for 60.4% of total sales. – Supermarket counters: revenue grew 12.3% to RMB 530.18 million. – Offline shelves (membership & modern trade): revenue surged 65.2% to RMB 344.80 million, lifting channel share to 23.8%. • Online e-commerce revenue rose 26.6% to RMB 574.68 million, contributing 39.6% of turnover.
Operational Metrics • Inventory value was reduced by 46.9% to RMB 85.28 million; inventory days shortened to 43 from 53. • Trade receivables days improved to 33 (FY25: 36), while trade payables days compressed to 38 (FY25: 51).
Capital Allocation • Capital commitments totalled RMB 12.59 million, mainly for plant and equipment. • A final dividend of RMB 131.29 million was paid during the period; no interim dividend was declared. • No interest-bearing bank loans; liquidity funded entirely through internal cash generation.
Product & Strategic Update Natural Food IH continued to execute its “medicine-food homology” nutrition strategy. Flagship products such as Walnut Black Soy Sesame Powder maintained resilience, while functional offerings like “Clearing Damp” and “Black Nourishment” supported growth. The Group deepened collaboration with Sam’s Club, validating its customised product model and driving shelf channel momentum. Seasonal marketing and high-exposure gift-box campaigns delivered over 500 million online impressions during the Spring Festival.
Outlook Management reiterated commitment to expanding functional food lines, enhancing R&D in core raw materials, and optimising omni-channel distribution with a focus on high-output, interest-based e-commerce and membership retail formats. With a sizeable cash reserve and negligible leverage, Natural Food IH enters the second half positioned to sustain strategic investment and seek further share gains in China’s dietary nutrition market.