Health and Happiness (H&H) International Holdings Limited reported solid interim results for the six months ended 30 June 2026.

Revenue and Profitability • Revenue increased 23.9% year on year to RMB8.70 billion. • Gross profit expanded 29.5% to RMB5.69 billion, lifting gross margin to 65.4% (2025: 62.5%). • Net profit surged to RMB610.63 million, up 760.0% from RMB71.02 million. • Adjusted net profit climbed 153.2% to RMB919.23 million. • EBITDA reached RMB1.58 billion (+53.3%), while adjusted EBITDA rose 71.9% to RMB1.89 billion, lifting the adjusted EBITDA margin to 21.8% (2025: 15.7%).

Segment Performance • Adult Nutrition & Care (ANC) revenue grew 15.5% to RMB3.97 billion, representing 45.7% of total sales; segment gross margin improved to 70.2%. • Baby Nutrition & Care (BNC) revenue jumped 45.2% to RMB3.63 billion, driven by a 58.0% rise in infant milk formula sales in mainland China; gross margin reached 61.5%. • Pet Nutrition & Care (PNC) revenue edged up 1.0% to RMB1.09 billion; high-margin pet supplements delivered 16.5% underlying growth, supporting a segment gross margin of 61.1%.

Geographical Breakdown • Mainland China remained the largest market, contributing RMB6.46 billion (74.3% of group revenue) after a 30.9% increase. • North America generated RMB956.64 million (+10.9%), led by Zesty Paws and Solid Gold. • Australia & New Zealand delivered RMB771.68 million (–3.6%) as the Group strategically reduced corporate daigou exposure; domestic Australian sales grew 12.2%. • Other territories contributed RMB505.11 million (+20.2%).

Cost and Expenses • Selling and distribution expenses (excluding depreciation/amortisation) rose 15.0% to RMB3.32 billion but fell to 38.1% of revenue (2025: 41.1%) on improved efficiency and marketing phasing. • Administrative expenses increased 11.4% to RMB443.76 million, equivalent to 5.1% of revenue (2025: 5.7%). • Finance costs declined 46.2% to RMB311.93 million following lower interest expenses and debt repayments.

Cash Flow and Balance Sheet • Operating cash inflow reached RMB1.70 billion, with a 100% cash-to-adjusted-EBITDA conversion rate. • Net cash used in investing was RMB112.08 million; financing outflows totalled RMB1.37 billion, reflecting voluntary loan prepayments. • Cash and cash equivalents plus time deposits stood at RMB1.98 billion at 30 June 2026. • Outstanding borrowings were RMB7.58 billion, taking the net leverage ratio down to 2.05× (31 Dec 2025: 3.45×).

Dividend The Board declared an interim dividend of HKD0.82 per share, payable on or about 12 October 2026 to shareholders on record as at 16 September 2026.

Capital Structure Update On 5 August 2026, H&H signed new loan facilities equivalent to USD330 million to refinance debt maturing in 2027. A further voluntary prepayment of roughly RMB300 million on its USD term loan was made on 13 August 2026.

Tax Audit Status BHA, an Australian subsidiary, continues to contest amended assessments issued by the Australian Tax Office. A cash deposit of AUD104 million remains with the tax authority pending final resolution; management does not consider an outflow probable at this stage.

Outlook Statement from Management The company plans to increase second-half marketing spending to support new product launches and market expansion while maintaining a focus on deleveraging and cost efficiency.