Earnings release
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– 1 – Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. Health and Happiness (H&H) International Holdings Limited Υ(H&H)ʮ̡ (Incorporated in the Cayman Islands with limited liability) (Stock Code: 1112) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026 FINANCIAL HIGHLIGHTS Six months ended 30 June 2026 2025 Change RMB million RMB million (Unaudited) (Unaudited) Revenue 8,695.9 7,019.2 +23.9% EBITDA* 1,583.3 1,033.1 +53.3% Adjusted EBITDA* 1,891.9 1,100.7 +71.9% Adjusted EBITDA margin 21.8% 15.7% +6.1pts Net profit 610.6 71.0 +760.0% Adjusted net profit** 919.2 363.0 +153.2% Adjusted net profit margin 10.6% 5.2% +5.4pts * EBITDA refers to earnings before interest, income tax expense, depreciation and amortization. Adjusted EBITDA = EBITDA + Non-cash losses of RMB308.6 million for the six months ended 30 June 2026 (six months ended 30 June 2025: losses of RMB57.6 million) + Non-recurring losses of nil for the six months ended 30 June 2026 (six months ended 30 June 2025: losses of RMB10.0 million) ** Adjusted net profit = Net profit + EBITDA adjustment items of losses of RMB308.6 million for the six months ended 30 June 2026 (six months ended 30 June 2025: losses of RMB67.6 million) + Other non- cash losses of nil for the six months ended 30 June 2026 (six months ended 30 June 2025: losses of RMB224.4 million)
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– 2 – The board (the “ Board ”) of directors (the “ Directors ”) of Health and Happiness (H&H) International Holdings Limited (the “ Company ”) is pleased to announce the unaudited interim consolidated results of the Company and its subsidiaries (together, the “ Group ”) for the six months ended 30 June 2026, together with the comparative figures for the corresponding period in 2025, as follows: INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Six months ended 30 June 2026 Six months ended 30 June 2026 2025 Notes RMB’000 RMB’000 (Unaudited) (Unaudited) REVENUE 5 8,695,910 7,019,234 Cost of sales (3,009,906) (2,630,154) Gross profit 5,686,004 4,389,080 Other income and gains 5 36,276 61,751 Selling and distribution expenses (3,400,653) (2,971,278) Administrative expenses (443,763) (398,526) Other expenses (404,083) (181,731) Finance costs (311,927) (579,542) Share of losses of associates (33,370) (13,462) PROFIT BEFORE TAX 1,128,484 306,292 Income tax expense 6 (517,855) (235,275) PROFIT FOR THE PERIOD 610,629 71,017 OTHER COMPREHENSIVE INCOME/(LOSS) Other comprehensive (loss)/income that may be reclassified to profit or loss in subsequent periods: Hedge of net investments: Effective portion of changes in fair value of hedging instruments arising during the period (43,461) (13,245) Exchange differences on translation of foreign operations 19,634 33,783 Exchange differences on net investment in foreign operations 14,467 133,058 Net other comprehensive (loss)/income that may be reclassified to profit or loss in subsequent periods (9,360) 153,596
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– 3 – INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (continued) Six months ended 30 June 2026 Six months ended 30 June 2026 2025 Note RMB’000 RMB’000 (Unaudited) (Unaudited) Other comprehensive (loss)/income that will not be reclassified to profit or loss in subsequent periods: Changes in fair value of equity investments designated at fair value through other comprehensive income (4,885) 781 OTHER COMPREHENSIVE (LOSS)/INCOME FOR THE PERIOD, NET OF TAX (14,245) 154,377 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 596,384 225,394 Profit attributable to owners of the parent 610,629 71,017 Total comprehensive income attributable to owners of the parent 596,384 225,394 RMB RMB (Unaudited) (Unaudited) EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT 8 Basic 0.95 0.11 Diluted 0.95 0.11
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– 4 – INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 June 2026 30 June 2026 31 December 2025 Notes RMB’000 RMB’000 (Unaudited) (Audited) NON-CURRENT ASSETS Property, plant and equipment 300,970 302,820 Right-of-use assets 196,313 217,778 Goodwill 7,534,316 7,620,614 Intangible assets 4,908,634 5,063,903 Deposits 509,639 32,761 Investments in associates 57,843 91,213 Deferred tax assets 568,146 546,752 Derivative financial instruments 17,509 40,470 Other non-current financial assets 143,404 190,858 Total non-current assets 14,236,774 14,107,169 CURRENT ASSETS Inventories 1,982,430 1,968,079 Trade receivables 9 1,025,155 904,245 Prepayments, other receivables and other assets 247,863 697,673 Pledged deposits 16,552 17,357 Time deposits 120,150 40,000 Cash and cash equivalents 1,856,301 1,669,001 Total current assets 5,248,451 5,296,355 CURRENT LIABILITIES Trade and bills payables 10 1,069,055 1,007,982 Other payables and accruals 11 2,508,288 2,302,762 Contract liabilities 42,037 36,989 Derivative financial instruments 44,365 7,445 Interest-bearing bank loans and other borrowings 1,722,099 995,137 Lease liabilities 27,701 29,548 Senior notes 80,868 83,656 Tax payable 448,772 151,919 Dividend payable 89,206 – Total current liabilities 6,032,391 4,615,438 NET CURRENT (LIABILITIES)/ASSETS (783,940) 680,917
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– 5 – INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued) 30 June 2026 30 June 2026 31 December 2025 Note RMB’000 RMB’000 (Unaudited) (Audited) TOTAL ASSETS LESS CURRENT LIABILITIES 13,452,834 14,788,086 NON-CURRENT LIABILITIES Senior notes 2,017,639 2,074,993 Interest-bearing bank loans and other borrowings 3,760,989 5,740,336 Other payables and accruals 11 3,645 4,376 Lease liabilities 112,356 127,255 Derivative financial instruments 309,316 160,126 Deferred tax liabilities 735,113 690,138 Total non-current liabilities 6,939,058 8,797,224 Net assets 6,513,776 5,990,862 EQUITY Issued capital 5,519 5,519 Reserves 6,508,257 5,894,531 Proposed dividend – 90,812 Total equity 6,513,776 5,990,862
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– 6 – INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Six months ended 30 June 2026 Six months ended 30 June 2026 2025 Note RMB’000 RMB’000 (Unaudited) (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax 1,128,484 306,292 Adjustments for: Bank interest income 5 (7,545) (6,335) Finance costs 311,927 579,542 Share of losses of associates 33,370 13,462 Loss on disposal of other non-current financial assets 454 – Depreciation of property, plant and equipment 25,710 33,082 Depreciation of right-of-use assets 22,912 19,989 Amortisation of intangible assets 101,845 100,517 Loss on disposal of items of property, plant and equipment and intangible assets 336 65 Equity-settled share option expense 16,233 – Equity-settled share award expense – 344 Fair value losses on derivative financial instruments, net 154,889 74,053 Fair value losses/(gains) on other non-current financial assets 37,906 (5,524) (Reversal of impairment)/impairment of trade receivables (2,207) 289 Write-down of inventories to net realisable value 134,494 206,514 Foreign exchange losses/(gains), net 82,430 (24,361) 2,041,238 1,297,929 Increase in inventories (150,492) (205,570) Increase in trade receivables (234,311) (190,538) Increase in prepayments, other receivables and other assets (37,128) (21,860) Decrease/(increase) in rental deposits 2,050 (342) Decrease/(increase) in restricted deposits 805 (9,717) Increase in trade and bills payables 61,360 52,076 Increase in other payables and accruals 202,746 165,622 Increase in contract liabilities 4,825 15,651 Cash generated from operations 1,891,093 1,103,251 Corporate income tax paid (196,003) (105,218) Net cash flows from operating activities 1,695,090 998,033
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– 7 – INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (continued) Six months ended 30 June 2026 Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Net cash flows from operating activities 1,695,090 998,033 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of items of property, plant and equipment (28,416) (24,281) Purchases of items of intangible assets (9,978) (16,710) Proceeds from disposal of items of property, plant and equipment and intangible assets 2,348 425 Placement of time deposits with original maturity of three months or more when acquired (80,150) – Addition to other non-current financial assets (4,285) – Proceeds from disposal of certain financial assets 860 – Interest received 7,545 9,181 Net cash flows used in investing activities (112,076) (31,385) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of senior notes – 2,111,651 Payment of transaction costs for issue of senior notes – (28,685) Repurchase and redemption of senior notes – (2,334,058) Repayment of interest-bearing bank loans (1,337,980) (266,297) New bank loans 250,000 50,000 Payment of lease liabilities (23,057) (23,823) Interest paid (271,417) (244,430) Proceeds from the swaps 24,735 9,504 Proceeds from termination of certain swaps – 19,604 Settlement for termination of forward contracts (8,751) – Net cash flows used in financing activities (1,366,470) (706,534)
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– 8 – Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) NET INCREASE IN CASH AND CASH EQUIVALENTS 216,544 260,114 Cash and cash equivalents at beginning of the period 1,669,001 1,603,920 Effect of foreign exchange rate changes, net (29,244) (52,010) CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 1,856,301 1,812,024 ANALYSIS OF BALANCES OF CASH AND CASH EQUIVALENTS Cash and bank balances 1,856,301 1,812,024 Cash and cash equivalent as stated in the interim condensed consolidated statement of financial position and interim condensed consolidated statement of cash flows 1,856,301 1,812,024 INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (continued) Six months ended 30 June 2026
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– 9 – NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 30 June 2026 1. CORPORATE AND GROUP INFORMATION Health and Happiness (H&H) International Holdings Limited (the “ Company ”) was incorporated as an exempted company with limited liability in the Cayman Islands. The registered office address of the Company is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands. The Company and its subsidiaries (together, the “ Group ”) are principally engaged in the manufacture and sale of premium pediatric nutrition and baby care products, adult nutrition and care products and pet nutrition and care products. In the opinion of the directors, the holding company and the ultimate holding company of the Company is Coliving Holdings Limited, a limited liability company incorporated in the British Virgin Islands. 2. BASIS OF PREPARATION AND ACCOUNTING POLICIES These unaudited interim condensed consolidated financial statements of the Group for the six months ended 30 June 2026 have been prepared in accordance with International Accounting Standard (“ IAS”) 34 Interim Financial Reporting issued by the International Accounting Standards Board. These unaudited interim condensed consolidated financial statements are presented in Renminbi (“ RMB”) and all values are rounded to the nearest thousand except when otherwise indicated. The accounting policies and basis of preparation used in the preparation of these unaudited interim condensed consolidated financial statements are the same as those used in the Group’s annual consolidated financial statements for the year ended 31 December 2025, except for the adoption of the amended IFRS Accounting Standards as disclosed in note 3 below. These unaudited interim condensed consolidated financial statements do not include all information and disclosures required in the Group’s annual consolidated financial statements, and should be read in conjunction with the Group’s annual consolidated financial statements for the year ended 31 December 2025. 3. CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2025, except for the adoption of the following amended IFRS Accounting Standards for the first time for the current period’s financial information: Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement of Financial Instrument Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity Annual Improvements to IFRS Accounting Standards – Volume 11 Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7
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– 10 – 4. OPERATING SEGMENT INFORMATION For management purposes, the Group is organised into business units based on their products, and has five reportable operating segments as follows: (a) the adult nutrition and care products segment comprises the production and sale of vitamins, herbal and mineral supplements, skin care and sports nutrition products for adults; (b) the infant formulas segment comprises the production and sale of milk formulas for infants, children and expectant and nursing mothers; (c) the pet nutrition and care products segment comprises the production and sale of holistic pet food and multi-condition pet supplements; (d) the paediatric probiotic and kids nutritional supplements segment comprises the production and sale of probiotic supplements and nutrition supplements in the form of powder, sachets, capsules, gummies and tablets for infants, children and expectant mothers; and (e) the other pediatric products segment comprises the production and sale of dried baby food and baby care products. Management monitors the results of the Group’s operating segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on reportable segment profit which is measured consistently with the Group’s profit before tax except that interest income, other income and unallocated gains, share of results of associates, finance costs as well as head office and corporate expenses are excluded from this measurement.
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– 11 – Operating segment information for the six months ended 30 June 2026 (Unaudited): Adult nutrition and care products Infant formulas Pet nutrition and care products Probiotic and nutritional supplements Other pediatric products Unallocated Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Segment revenue: Sales to external customers 3,973,074 3,093,047 1,090,366 433,351 106,072 – 8,695,910 Segment results 2,787,218 1,857,469 665,876 332,570 42,871 – 5,686,004 Reconciliations: Interest income 7,545 Other income and unallocated gains 28,731 Share of losses of associates (33,370) Corporate and other unallocated expenses (4,248,499) Finance costs (311,927) Profit before tax 1,128,484 Other segment information: Depreciation and amortisation 42,569 14,397 44,284 3,289 2,370 43,558 150,467 Impairment/(reversal of impairment) of trade receivables 1,640 – – – (3,847) – (2,207) Write-down of inventories to net realisable value 24,231 84,270 3,227 456 22,310 – 134,494 Capital expenditure* 6,773 14,090 10,498 1,741 2,121 11,593 46,816
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– 12 – Operating segment information for the six months ended 30 June 2025 (Unaudited): Adult nutrition and care products Infant formulas Pet nutrition and care products Probiotic and nutritional supplements Other pediatric products Unallocated Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Segment revenue: Sales to external customers 3,438,722 1,970,973 1,079,202 427,224 103,113 – 7,019,234 Segment results 2,322,496 1,092,323 633,556 297,001 43,704 – 4,389,080 Reconciliations: Interest income 6,335 Other income and unallocated gains 55,416 Share of losses of associates (13,462) Corporate and other unallocated expenses (3,551,535) Finance costs (579,542) Profit before tax 306,292 Other segment information: Depreciation and amortisation 39,348 14,877 41,358 3,399 4,774 49,832 153,588 Impairment of trade receivables 289 – – – – – 289 Write-down of inventories to net realisable value 37,592 115,779 5,301 41,775 6,067 – 206,514 Capital expenditure* 18,361 31,920 3,804 3,095 2,474 6,222 65,876 * Capital expenditure consists of additions to property, plant and equipment and intangible assets including assets from the acquisition of subsidiaries. Geographical information (a) Revenue from external customers Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Chinese mainland* 6,462,475 4,936,033 Australia and New Zealand 771,681 800,718 North America 956,644 862,155 Other locations # 505,110 420,328 Total revenue 8,695,910 7,019,234 * Including the cross-border e-commerce sales through the subsidiaries registered in Hong Kong Special Administrative Region (“ Hong Kong SAR ”) of the People’s Republic of China (the “ PRC”) to customers in Chinese mainland. The revenue information above is based on the locations of the customers.
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– 13 – (b) Non-current assets 30 June 31 December 2026 2025 RMB’000 RMB’000 (Unaudited) (Audited) Chinese mainland 63,779 88,809 Australia and New Zealand 2,649,265 2,207,611 North America 2,223,283 2,329,894 Other locations # 1,037,072 1,082,161 Total non-current assets 5,973,399 5,708,475 The non-current assets information above is based on the locations of the assets and excludes financial instruments, deferred tax assets and goodwill. # Including the special administrative regions of the PRC and Taiwan of the PRC. 5. REVENUE, OTHER INCOME AND GAINS Revenue An analysis of the revenue is as follows: Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Revenue from contracts with customers Sale of goods 8,695,910 7,019,234 Disaggregated revenue information For the six months ended 30 June 2026 (unaudited) Segments Adult nutrition and care products Infant formulas Pet nutrition and care products Probiotic and nutritional supplements Other pediatric products Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Geographical markets Chinese mainland 2,900,516 3,010,766 127,728 423,408 57 6,462,475 Australia and New Zealand 762,522 7,273 986 900 – 771,681 North America 16,074 – 939,027 1,543 – 956,644 Other locations* 293,962 75,008 22,625 7,500 106,015 505,110 Total 3,973,074 3,093,047 1,090,366 433,351 106,072 8,695,910 Timing of revenue recognition Goods transferred at a point in time 3,973,074 3,093,047 1,090,366 433,351 106,072 8,695,910
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– 14 – For the six months ended 30 June 2025 (unaudited) Segments Adult nutrition and care products Infant formulas Pet nutrition and care products Probiotic and nutritional supplements Other pediatric products Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Geographical markets Chinese mainland 2,406,085 1,904,945 204,873 419,689 441 4,936,033 Australia and New Zealand 788,692 11,494 – 532 – 800,718 North America 11,700 – 849,985 462 8 862,155 Other locations* 232,245 54,534 24,344 6,541 102,664 420,328 Total 3,438,722 1,970,973 1,079,202 427,224 103,113 7,019,234 Timing of revenue recognition Goods transferred at a point in time 3,438,722 1,970,973 1,079,202 427,224 103,113 7,019,234 * Including the special administrative regions of the PRC and Taiwan of the PRC. Other income and gains Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Bank interest income 7,545 6,335 Foreign exchange gains – 24,361 Fair value gains on other non-current financial assets – 5,524 Government subsidies* 652 363 Gains on sales of raw materials and scraps 11,162 13,940 Others 16,917 11,228 Total other income and gains 36,276 61,751 * There are no unfulfilled conditions or contingencies related to these government subsidies.
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– 15 – 6. INCOME TAX EXPENSE Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Current – Charge for the period Chinese mainland 199,838 91,490 Hong Kong SAR 196,337 58,873 Australia 49,352 51,834 Elsewhere 31,931 382 – Under/(over) provision in the prior year 15,518 (1,616) Deferred 24,879 34,312 Total 517,855 235,275 The Group is subject to income tax on an entity basis on profits arising in or derived from the jurisdictions in which members of the Group are domiciled and operate. PRC enterprise income tax (“EIT”) The income tax provision of the Group in respect of its operations in Chinese mainland has been calculated at the rate of 25% (six months ended 30 June 2025: 25%) on the taxable profits for the period, based on the existing legislation, interpretations and practices in respect thereof. Certain of the Group’s subsidiaries in Chinese mainland are qualified as high and new technology enterprises and are entitled to a preferential corporate income tax rate of 15% during the relevant periods. Hong Kong profits tax Hong Kong profits tax has been provided at the rate of 16.5% (six months ended 30 June 2025: 16.5%) on the estimated assessable profits arising in Hong Kong during the period, except for one subsidiary of the Group which is a qualifying entity under the two-tiered profits tax rates regime. The first HKD2,000,000 (six months ended 30 June 2025: HKD2,000,000) of assessable profits of this subsidiary is taxed at 8.25% (six months ended 30 June 2025: 8.25%) and the remaining assessable profits are taxed at 16.5% (six months ended 30 June 2025: 16.5%). Australia corporate income tax Australia corporate income tax has been provided at the rate of 30% (six m onths ended 30 June 2025: 30%) on the estimated assessable profits arising in Australia. Tax consolidation legislation Biostime Healthy Australia Pty Ltd. (“ BHA”), its wholly-owned Australian subsidiaries and eligible Tier 1 fellow subsidiary have elected to form an income tax multiple entry consolidated (“ MEC”) group, for Australian income tax purposes. In an income tax MEC group, BHA, its wholly-owned subsidiaries and eligible Tier 1 fellow subsidiary within the income tax MEC group account for their own current and deferred tax amounts. These income tax amounts are measured as if each entity in the income tax MEC group continues to be a standalone taxpayer in its own right.
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– 16 – In addition to its own current and deferred tax amounts, BHA also recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from subsidiaries within the income tax MEC group. The entities have also entered into a tax funding arrangement under which the wholly-owned entities fully compensate BHA for any current tax payable assumed and are compensated by BHA for any current tax receivable and deferred tax assets relating to unused tax losses or unused tax credits that are transferred to BHA under the income tax consolidation legislation. The funding amounts are determined by reference to the amounts recognised in the wholly-owned entities’ financial statements. The amounts receivable/payable under the tax funding arrangement are due upon receipt of the funding advice from the head entity, which is issued as soon as practicable after the end of each financial year. The head entity may also require payment of interim funding amounts to assist with its obligations to pay tax instalments. Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as current amounts receivable from or payable to other entities in the Group. Any difference between the amounts assumed and amounts receivable or payable under the tax funding agreement are recognised as a contribution to (or distribution from) wholly-owned tax consolidated entitles. Income tax for other jurisdictions The Group’s tax provision in respect of other jurisdictions has been calculated at the applicable tax rates in accordance with the prevailing practices of the jurisdictions in which the Group operates. Pillar Two income taxes The Group is within the scope of the Pillar Two model rules. The Group has assessed its potential exposure based on the information available regarding the financial performance of the Group in the current period. As such, it may not be entirely representative of future circumstances. Based on the assessment, transitional safe harbor may apply on all the jurisdictions where Pillar Two legislation is in effect during the current period. The management is not currently aware of any circumstances under which this might change. The Group does not expect a material exposure to Pillar Two income taxes. The Group continues to follow Pillar Two legislative developments, as more countries prepare to enact the Pillar Two model rules, to evaluate the potential future impact on its financial statements. 7. DIVIDENDS Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Final declared – HKD0.16 (2025: HKD0.05) per ordinary share 89,703 29,732 Dividends on ordinary shares declared after the interim reporting date: Interim – HKD0.82 (2025: HKD0.19) per ordinary share 459,612 108,893 On 25 August 2026, the board of directors of Health and Happiness (H&H) International Holdings Limited declared an interim dividend of HKD0.82 (six months ended 30 June 2025: HKD0.19) per ordinary share, amounting to a total of approximately RMB459,612,000 (six months ended 30 June 2025: RMB108,893,000).
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– 17 – 8. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT The calculation of the basic earnings per share amount is based on the profit for the six months ended 30 June 2026 attributable to ordinary equity holders of the parent of RMB610,629,000 (six months ended 30 June 2025: RMB71,017,000), and the adjusted weighted average number of ordinary shares of 641,778,731 (six months ended 30 June 2025: 641,662,090) outstanding during the period. The calculation of the diluted earnings per share amount for the period is based on the profit for the period attributable to ordinary equity holders of the parent. The weighted average number of ordinary shares used in the calculation of diluted earnings per share is the adjusted weighted average number of ordinary shares outstanding during the period, as used in the basic earnings per share calculation, and the weighted average number of ordinary shares assumed to have been issued at no consideration on the deemed exercise of all dilutive potential ordinary shares into ordinary shares under the share option schemes and the share award schemes. No adjustment had been made to the basic earnings per share amount presented for the six months ended 30 June 2026 in respect of a dilution as impact of the potential ordinary shares had an anti-dilutive effect on the basic earnings per share amount presented. The calculations of the basic and diluted earnings per share are based on: Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Earnings Profit attributable to ordinary equity holders of the parent, used in the basic earnings per share calculation 610,629 71,017 Number of shares Shares Weighted average number of ordinary shares outstanding 645,561,354 645,561,354 Weighted average number of shares held for the share award schemes (3,782,623) (3,899,264) Adjusted weighted average number of ordinary shares outstanding used in the basic earnings per share calculation 641,778,731 641,662,090 Effect of dilution – weighted average number of ordinary shares: Share options and awarded shares – 116,646 Adjusted weighted average number of ordinary shares outstanding used in the diluted earnings per share calculation 641,778,731 641,778,736 9. TRADE RECEIVABLES An ageing analysis of the trade receivables as at the end of the reporting period, based on the invoice date and net of provisions, is as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Within 1 month 566,389 472,122 1 to 3 months 370,953 381,204 Over 3 months 87,813 50,919 Total 1,025,155 904,245
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– 18 – 10. TRADE AND BILLS PAYABLES An ageing analysis of the trade and bills payables as at the end of the reporting period, based on the invoice date, is as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Within 1 month 893,794 841,635 1 to 3 months 139,805 134,390 Over 3 months 35,456 31,957 Total 1,069,055 1,007,982 11. OTHER PAYABLES AND ACCRUALS 30 June 2026 31 December 2025 Notes RMB’000 RMB’000 (Unaudited) (Audited) Salaries and welfare payables 216,301 214,687 Accruals 1,281,212 1,103,804 Other tax payables 97,132 53,210 Other payables (a) 281,394 326,384 Refund liabilities (b) 635,894 609,053 Total 2,511,933 2,307,138 Less: current portion (2,508,288) (2,302,762) Non-current portion 3,645 4,376 Notes: (a) Other payables are non-interest-bearing and have an average term of three months. (b) Details of refund liabilities as at 30 June 2026 and 31 December 2025 are as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Sales rebate 619,769 598,116 Sales return 16,125 10,937 Total 635,894 609,053
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– 19 – CHAIRMAN’S STATEMENT The Group delivered a strong first half, underpinned by strong momentum across all our three business segments: Adult Nutrition and Care (the “ ANC ”), Baby Nutrition and Care (the “BNC”) and Pet Nutrition and Care (the “ PNC”). Crucially, our results demonstrate how each of our business segments is unlocking or creating long-term structural drivers that will support the sustainability of our growth trajectory. Key highlights in the first half of 2026 included: • Strong growth with healthy profitability: Total revenue increased by 23.7% on a like- for-like (the “ LFL”) basis, driven by growth across all business segments. High-margin nutritional supplements accounted for 60.2% of revenue. Adjusted EBITDA grew by 71.9% and adjusted EBITDA margin reached 21.8%, thanks to marketing investment phasing and improved cost efficiency. We will continue to step up investment in new strategic product launches and in initiatives targeting our core markets and selected expansion markets in the second half to support our sustainable growth. • ANC delivered broad-based growth across core and expansion markets: ANC revenue grew by 13.9% on a LFL basis, supported by continued momentum in Chinese mainland, the Australia and New Zealand (the “ ANZ”) domestic market, and expansion markets including Thailand, Middle East and India (the “ MEI ”), Indonesia and Malaysia. • BNC growth accelerated on sustained market-share gains and structural growth drivers: BNC revenue grew by 45.2%, driven by 58.0% growth in infant milk formulas (the “ IMF ”) sales in Chinese mainland. Continued investment in new mother education, improving Stage 3 conversion and product innovation strengthened consumer engagement and supported sustained market-share gains, while recent industry developments provided an additional tailwind. Our market share in the super-premium IMF segment in Chinese mainland increased to 20.6%, up from 14.8% a year earlier 1. • PNC continued to build scale, led by high-margin pet supplements: PNC revenue grew by 4.8% on a LFL basis, supported by accelerated growth of 16.5% in the high- margin pet supplements category and channel expansion in North America. • Balance sheet continued to strengthen: In the first half of 2026, we reduced gross debt by over RMB1 billion, reducing our net leverage ratio from 3.45x as of 31 December 2025 to 2.05x as of 30 June 2026, accelerating our deleveraging trajectory while maintaining healthy cash reserves of close to RMB2.0 billion. We remain committed to maintaining a steady track record of dividend payouts, in addition to steadily reducing our leverage and further improving our balance sheet. In line with this commitment, I am pleased to announce an interim dividend of HKD0.82 per ordinary share. 1 According to research statistics by Nielsen, an independent research company, market share data for the past twelve months ended 30 June 2026.
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– 20 – ADULT NUTRITION AND CARE Our ANC segment grew by 13.9% on a LFL basis in the first half of the year, with our business in Chinese mainland, the ANZ domestic market and expansion markets delivering double-digit growth momentum. Revenue from the Chinese mainland grew by 20.5%, thanks to (i) Swisse’s continued efforts on premiumisation of product portfolio led by both core and our innovative products, such as heart health, metabolism, and joint health, (ii) above-market growth across the Douyin channel and new retail channels, and (iii) phasing effects from the Chinese New Year holidays in the first quarter of 2026. The broader momentum reflects the unlocking of new structural sources of demand under our mega-brand strategy and the build-out of a comprehensive product matrix under the Swisse Plus and Little Swisse sub-brands, expanding the types of consumers we can reach. Swisse Plus and Little Swisse grew by 18.6% and 60.2% in the first half of 2026, respectively. Our strong performance in Chinese mainland was also driven by our ongoing channel development efforts. Douyin remains a major growth engine, with sales growing by 57.5%, and Swisse ascended to the No. 3 market position 2. We also further strengthened our growth in new retail channels such as Sam’s Club, with sales through this channel growing by 34.2%. Sales through our core online cross-border e-commerce (the “ CBEC”) channel grew by 20.9% amid ongoing industry consolidation and despite increased competitive intensity, accounting for 81.7% of revenue in Chinese mainland. This allowed Swisse to expand its No. 1 position in the online vitamin, herbal and mineral supplement (the “ VHMS ”) market in Chinese mainland 3 in the first half of 2026. In ANZ, we maintained our market leadership through product innovation and channel expansion, delivering strong 12.2% growth in the Australian domestic market. This was supported by high-impact innovations, such as Swisse Magnesium Glycinate and the further expansion of in-demand formats, particularly gummies, and innovative marketing campaigns designed to engage the new generation of consumers. We also deepened our partnerships with key retailers in both pharmacy and grocery channels, with particularl y strong growth across independent pharmacy channel banners, online channels and New Zealand. In the first half of 2026, Swisse continued to gain share and maintained its position as Australia’s No. 1 vitamin and mineral supplements brand across the total market 4. Total ANC revenue from the overall ANZ market decreased by 8.3% year-on-year on a LFL basis, reflecting our strategic choice to deprioritise the corporate daigou business. 2 According to research statistics by Feigua, an independent data provider, market share data for the past twelve months ended 30 June 2026. 3 According to research statistics by Early Data, an independent research company, market share data for the past twelve months ended 30 June 2026. 4 According to research statistics by IQVIA, an independent research company, market share data for the past twelve months ended 30 June 2026.
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– 21 – Revenue from other territories increased by 20.5% year-on-year on a LFL basis, contributing 7.8% of the total ANC revenue, powered by strong 32.6% LFL growth across our nine expansion markets in Asia. This was led by strong performances in Thailand, MEI, Indonesia and Malaysia, rapid growth across digital commerce channels in all markets, product portfolio expansion, ongoing distribution gains and the launch of Swisse Nutra, a premium beauty supplement range. We maintained our existing No. 1 positions in the liver health and men’s health categories in Singapore 5. In Italy, we sustained our existing No. 2 position in the beauty VHMS market 6, leveraging our No. 1 position in the hair, skin and nail category. BABY NUTRITION AND CARE Our BNC segment accelerated its growth trajectory, demonstrating our renewed competitive strength and delivering high double-digit year-on-year growth in the first half of 2026. IMF sales in Chinese mainland grew by 58.0%, led by volume growth, significantly outpacing the overall IMF market, which saw a 3.5% decline in retail scan sales 7. Biostime’s share of the super-premium IMF segment in Chinese mainland reaching a new all-time high of 20.6%, compared to 14.8% a year earlier 8. While part of this uplift reflected shifts in consumer demand amid recent industry developments, our broader momentum was driven by sustained market-share gains. This structural trend was supported by our strong brand trust and targeted consumer engagement. Our continued growth also reflected robust sell-through, disciplined channel execution, the successful rollout of the first-ever imported IMF with Human Milk Oligosaccharide (“the HMO ”) in Chinese mainland, and the effective implementation of our strategic initiatives for new mother education and Stage 3 conversion. Our early-stage formulas continued to see strong momentum, while providing a high-visibility pipeline and solid foundation for Stage 3 IMF conversion. During the first half of 2026, our Stage 1 and Stage 2 IMFs recorded retail scan sales growth of 68.8% and 41.8%, respectively 9. Outside of Chinese mainland, our IMF business in France experienced strong growth momentum in the first half of 2026, supported by a spike in demand for Biostime IMFs amid recent global industry developments. Our shares in organic IMF and goat milk in the pharmacy channel reached 41.8% and 57.9% respectively 10. 5 According to research statistics by Nielsen, an independent research company, market share data for the past twelve months ended 30 June 2026. 6 According to research statistics by IQVIA, an independent research company, market share data for the past twelve months ended 30 June 2026. 7 According to research statistics by Nielsen, an independent research company, market share data for the past twelve months ended 30 June 2026. 8 According to research statistics by Nielsen, an independent research company, market share data for the past twelve months ended 30 June 2026. 9 According to research statistics by Nielsen, an independent research company, market share data for the past six months ended 30 June 2026. 10 According to research statistics by GERS, an independent research company, market share data for the past twelve months ended 30 June 2026.
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– 22 – PET NUTRITION AND CARE Our PNC segment achieved 4.8% revenue growth on a LFL basis in the first half of 2026, supported by accelerated growth in the high-margin pet supplements, which offset an expected sales decline in Chinese mainland as part of our proactive shift to supply localisation. Sales in the high-margin pet supplements grew by 16.5% as we continued to tap structural drivers including changing demographics, rising pet populations, and well-established pet nutrition premiumisation and pet humanisation trends across North America and other expansion markets. In North America, sales of Zesty Paws grew by 16.7% on a LFL basis, driven by continued success across the Amazon and Chewy e-commerce channels, alongside broad distribution through Walmart, PetSmart, Petco, Tractor Supply, Target, Pet Supplies Plus and Menards. Zesty Paws remains one of the most recognised pet supplements brands in the United States. Meanwhile, sales of Solid Gold returned to growth, increasing by 6.3% on a LFL basis as the brand advanced its product portfolio premiumisation strategy and growth in the e-commerce channel. As of 30 June 2026, Zesty Paws and Solid Gold were present in more than 23,000 stores and 4,000 stores, respectively, across the United States. In Chinese mainland, we focused on driving the growth of Solid Gold’s high-margin pet nutritional food and supplements, which contributed 46.5% of total PNC revenue in Chinese mainland in the first half of 2026. We continued to expand our PNC footprint across Europe, Asia and ANZ, with our growing global reach amplifying our core strengths in premium nutrition and enabling us to capture rising demand in expansion markets. OPTIMISING OUR CAPITAL STRUCTURE We continued to proactively manage and optimise our capital structure in the first half of 2026, with a clear focus on reducing gross debt, extending debt maturity, and strengthening long-term financial stability. During the six months ended 30 June 2026, we continued to make strong progress in deleveraging, reducing our gross debt by over RMB1 billion compared with 31 December 2025. As of 30 June 2026, we had significantly reduced our net leverage ratio to 2.05x, compared to 3.45x as at 31 December 2025. Building on this momentum, we completed an additional voluntary prepayment of RM B300 million on our USD term loan following the period end, further advancing our deleveraging trajectory. As of 30 June 2026, we maintained a robust cash position of close to RM B2.0 billion, with RMB-denominated and RMB hedged debts collectively representing 97.8% of total borrowings. This reflects the proactive management of our funding mix and effectively mitigates exposure to foreign exchange and external interest rate volatility. We continue to maintain diversified access to both onshore and offshore funding markets.
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– 23 – In addition, on 5 August 2026, we signed a new facilities agreement in an aggregate amount equivalent to approximately US D330 million in relation to the refinancing of our term loan facilities maturing in 2027. Upon drawdown, this transaction is expected to extend our debt maturity profile, reduce financing costs and further enhance our financial flexibility. OUTLOOK: CONTINUED GROWTH WITH CONSISTENT UNDERLYING FULL- YEAR PROFITABILITY DESPITE MACRO CHALLENGES In the second half of 2026, we will continue to drive the sustainable growth of our high- margin, fast-growing nutritional supplements and IMF, while delivering a healthy level of profitability. Our ANC business is positioned for continued growth across Chinese mainland, ANZ domestic and our expansion markets. In Chinese mainland, we will continue to invest in our leading categories to further consolidate Swisse’s leading market position, while expanding marketing investments to support innovative and strategic product launches, market expansion and brand-building initiatives to create a clear runway for growth in the second half of 2026 and into 2027. From a channel perspective, we will continue to prioritise penetration into high-growth channels, particularly Douyin and new retail channels, to further broaden our consumer reach. In ANZ and expansion markets, we will reinforce our growth momentum and market leadership through continued product innovation and channel expansion. In the BNC segment, we expect IMF sales to grow further as we leverage our increased market share to further develop structural growth drivers. We will continue to invest in marketing campaigns focused on new mother education across e-commerce and baby-speciality channels and in product innovations such as our HMO IMFs, while also improving conversion from early-stage to Stage 3 IMF products. We expect our PNC segment to maintain its upward trajectory. In North America, Zesty Paws will continue to advance its omni channel expansion and disruptive category innovation, while driving Solid Gold’s growth in high margin categories and further accelerate growth across e-commerce channels. In Chinese mainland, we remain focused on driving the growth of locally-made Solid Gold’s high-margin pet food and supplements. Finally, we remain committed to our deleveraging trajectory while maintaining robust liquidity and a healthy capital structure. We will continue to optimise our debt profile, mitigate foreign exchange volatility and reinforce our financial resilience to support our sustainable long-term growth.
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– 24 – MANAGEMENT DISCUSSION AND ANALYSIS RESULTS OF OPERATION Revenue For the six months ended 30 June 2026, the Group’s revenue increased by 23.9% on reported basis or 23.7% on a like-for-like 1 (“ LFL”) basis to RM B8,695.9 million as compared with the same period in 2025. This was mainly driven by the growth across all business segments – namely Adult Nutrition and Care (“ ANC ”), Baby Nutrition and Care (“ BNC ”) and Pet Nutrition and Care (“ PNC”). Revenue from high-margin nutritional supplements 2 across all of the Group’s three business segments achieved year-on-year growth of 13.3% on a LFL basis and contributed to 60.2% of the Group’s total revenue for the six months ended 30 June 2026. Six months ended 30 June 2026 2025 Reported Change LFL Change 2026 2025 RMB million RMB million % to revenue % to revenue Revenue by product segment Nutritional Supplements 5,239.1 4,606.0 13.7% 13.3% 60.2% 65.6% – VHMS products 3,955.0 3,418.3 15.7% 14.1% 45.4% 48.7% – Pet supplements 850.7 760.5 11.9% 16.5% 9.8% 10.8% – Paediatric probiotic and kids nutritional supplements 433.4 427.2 1.5% 1.4% 5.0% 6.1% Infant formulas 3,093.0 1,970.9 56.9% 56.9% 35.6% 28.1% Others 3 363.8 442.3 –17.7% –16.8% 4.2% 6.3% Revenue by business segment Adult nutrition and care products 3,973.1 3,438.7 15.5% 13.9% 45.7% 49.0% Baby nutrition and care products 3,632.5 2,501.3 45.2% 45.2% 41.8% 35.6% Pet nutrition and care products 1,090.3 1,079.2 1.0% 4.8% 12.5% 15.4% Revenue by geography Chinese mainland 6,462.5 4,936.0 30.9% 30.9% 74.3% 70.3% North America 956.6 862.2 10.9% 15.5% 11.0% 12.3% ANZ 771.7 800.7 –3.6% –8.6% 8.9% 11.4% Other territories 505.1 420.3 20.2% 16.8% 5.8% 6.0% Total 8,695.9 7,019.2 23.9% 23.7% 100.0% 100.0% 1 Like-for-like (“ LFL ”) basis is used to indicate change of this period compared with same period of previous year, excluding the impact from foreign exchange changes. For the purpose of preparing of the unaudited consolidated revenue, the exchange rates adopted were AUD1 = RM B4.8274 and USD1 = RMB6.8932 for the six months ended 30 June 2026, and AUD1 = RMB4.5771 and USD1 = RMB7.1839 for the corresponding period in 2025, respectively. 2 Nutritional supplements include Swisse VHMS products, pet supplements under Zesty Paws and Solid Gold brands, Biostime probiotic supplements and Biostime paediatric and kids products. 3 Others include pet food from Solid Gold, baby food and snacks from Good Goût, baby accessories from Dodie and other skincare products.
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– 25 – Chinese mainland: Strong growth of ANC and BNC segments bolstered by premiumisation, innovation and market share gains Revenue from Chinese mainland recorded a year-on-year increase of 30.9% for the six months ended 30 June 2026. Chinese mainland remained as the Group’s largest market, accounting for 74.3% of the Group’s total revenue for the six months ended 30 June 2026, compared with 70.3% in the same period of last year. Revenue from ANC segment in Chinese mainland achieved a strong growth of 20.5% as compared with the same period of last year, and accounted for 73.0% of the Group’s total ANC revenue for the six months ended 30 June 2026. The growth was mainly driven by Swisse’s continuous efforts to premiumise its product portfolio led by both core and innovative products such as heart health, metabolism and joint health. The growth was also supported by the Group’s channel development efforts, especially the fast-growing channels such as Douyin and new retail. Revenue in Douyin and new retail channels recorded year- on-year growth of 57.5% and 34.2%, respectively, in the six months ended 30 June 2026. The phasing effects from the Chinese New Year holidays in the first quarter of 2026 also contributed to the revenue growth. In the six months ended 30 June 2026, revenue generated from CBEC and normal trade channels grew by 20.9% and 18.9%, respectively, contributing 81.7% and 18.3%, respectively, of ANC revenue in Chinese mainland. BNC segment of Chinese mainland accelerated its growth trajectory and achieved a strong revenue growth of 47.7% in the six months ended 30 June 2026, comparing with the same period of last year. Within BNC segment, the revenue from IMF in Chinese mainland for the six months ended 30 June 2026 grew strongly by 58.0%. This strong growth was mainly driven by the successful launch of the first-ever imported IMF with Human Milk Oligosaccharide (HMO) in Chinese mainland, disciplined channel execution, and the effectiveness of the Group’s strategic priorities in new mother education and Stage 3 conversion. While the Company observed that the growth was supported by a recent shift in consumer demand amid recent industry developments in the first half of 2026, the more fundamental driver is its sustained share – a structural trend reinforced by strong brand trust and targeted consumer engagement, enabled the Group to take advantage of such shift in consumer demand. For the six months ended 30 June 2026, the Group recorded a slight increase of 0.9% in revenue from paediatric probiotic and kids nutritional supplements in Chinese mainland. The increase was mostly attributed to the expansion of the product portfolio including kids nutrition powder supplements and innovative probiotics, such as Nasal Comfort and Super Gold Probiotics. While the growth was offset by the year-on-year decline in sales of probiotic supplements due to the sector-wide challenges across the supplements business in Chinese mainland, particularly within the pharmacy channel. Revenue from PNC segment in Chinese mainland declined by 37.7%, as expected, as reflecting the Group’s proactive product portfolio transformation aimed at driving the underlying consumer demand and healthy profitability in the long-term. The Group’s focus remains on accelerating the growth of Solid Gold’s high-margin pet nutritional food and supplements, as well as product innovation – demonstrated by the launch of the first ever “catderived” probiotics range in Chinese mainland during the six months ended 30 June 2026. The high-margin pet food and supplement products contributed 46.5% of total PNC revenue in Chinese mainland during the six months ended 30 June 2026.
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– 26 – North America: Ommi-channel growth driven by core and innovative product portfolio and channel execution For the six months ended 30 June 2026, revenue generated from North America reached a growth of 15.5% year-on-year on a LFL basis, and accounted for 11.0% of the Group’s total revenue. The strong growth was mainly supported by the accelerated growth in the high- margin pet supplements as the Group continued to tap structural drivers including changing demographics, rising pet populations, and well-established pet nutrition premiumisation and pet humanisation trends. Revenue of Zesty Paws maintained strong year-on-year growth of 16.7% on a LFL basis for the six months ended 30 June 2026, driven by continued success across the Amazon, Chewy and TikTok, and broad distribution through Walmart, PetSmart, Petco, Tractor Supply, Target, Pet Supplies Plus and Menards. Revenue of Solid Gold recorded an increase of 6.3% on a LFL basis for the six months ended 30 June 2026 as compared with the same period of last year. This growth was mainly supported by increasing contribution from high-margin pet supplements and growth in e-commerce channel. ANZ: Reinforced domestic market leadership through superior product innovation On a LFL basis, revenue from ANZ domestic market maintained growth at 12.2% in ANC segment, which was mainly driven by high-impact innovations, such as Swisse Magnesium Glycinate and the further expansion of in-demand formats, particularly gummies, and innovative marketing campaigns designed to engage the new generation of consumers. While revenue from total ANZ market decreased by 8.6% year-on-year on a LFL basis for the six months ended 30 June 2026, reflecting the Group’s strategic choice to deprioritise the corporate Daigou business. In the six months ended 30 June 2026, revenue from domestic and export sales contributed to 83.7% and 16.3% of total ANZ revenue, respectively. Other territories: Strong growth momentum continued in expansion markets Revenue contributed from other territories increased by 16.8% on a LFL basis for the six months ended 30 June 2026 as c ompared with the same period of last year. In particular, the Group’s expansion markets in Asia, including Thailand, MEI (Middle East and India), Indonesia and Malaysia, delivered strong growth. The Group sustained its market share rankings in most of these markets through the expansion of its product portfolio and ongoing distribution gains. The Group’s IMF sales in France also benefited from a spike in demand for Biostime IMF due to new industry developments during the six months ended 30 June 2026. Gross profit and gross profit margin In the first half of 2026, the Group recorded gross profit of RMB5,686.0 million, representing an increase of 29.5% as compared with the same period of last year. The Group’s gross profit margin increased from 62.5% in the first half of 2025 to 65.4% in the first half of 2026, thanks to gross profit margin improvement across all three business segments driven by operating leverage, product portfolio premiumisation and supply chain excellence.
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– 27 – The gross profit margin of the ANC segment increased from 67.5% in the first half of 2025 to 70.2% in the first half of 2026, primarily driven by the optimisation of sourcing costs, reduction of stock provision for slow-moving products, as well as favourable changes in product mix through product portfolio premiumisation, and channel mix. The gross profit margin of the BNC segment increased from 57.3% in the first half 2025 to 61.5% in the first half of 2026, mainly resulting from the decreased stock provision for slow-moving products, while partially offset by the increased sourcing costs of certain key ingredients. The gross profit margin of PNC segment increased from 58.7% in the f irst half of 2025 to 61.1% in the same period of this year. The increase was mainly due to the favorable product mix towards higher revenue contribution from high-margin pet nutritional food and supplements products. Other income and gains Other income and gains amounted to RMB36.3 million for the six months ended 30 June 2026. Other income and gains primarily consisted of gains on sales of raw materials and scraps of RMB11.2 million, bank interest income of RMB7.5 million and others. Selling and distribution expenses Excluding depreciation of property, plant and equipment and right-of-use assets, and amortization of intangible assets (“ D&A ”), selling and distribution expenses increased by 15.0% to RMB3,315.5 million for the six months ended 30 June 2026, as compared with same period of 2025. Selling and distribution expenses excluding D&A as a percentage of the Group’s revenue decreased from 41.1% in the first half of 2025 to 38.1% in the first half of 2026 mainly benefited from a favourable business segment mix primarily driven by spending efficiency improvement and marketing investment phasing in the BNC segment. ANC Selling and distribution expenses of ANC business amounted to RM B1,639.8 million for the six months ended 30 June 2026, representing an increase of 13.8% as compared with the same period of last year. Selling and distribution expenses of ANC business as a percentage of the Group’s revenue from ANC business decreased slightly from 41.9% in the first half of 2025 to 41.3% in the first half of 2026, ma inly thanks to the efficiency improvement which was partially offset by the channel mix change in Chinese mainland market and strategic investment in new expansion markets mainly in Asia. Advertising and marketing expense of ANC business as a percentage to the Group’s ANC revenue decreased slightly from 34.6% in the first half of 2025 to 34.3% in the first half of 2026. The selling and distribution expenses other than advertising and marketing expense of ANC business as a percentage to its revenue decreased slightly from 7.3% in the first half of 2025 to 7.0% in the first half of 2026.
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– 28 – BNC Selling and distribution expenses of BNC business amounted to RMB1,163.6 million for the six months ended 30 June 2026, representing an increase of 22.2% as compared with the same period of last year. Selling and distribution expenses of BNC business as a percentage of the Group’s revenue from BNC business decreased from 38.1% in the first half of 2025 to 32.0% in the first half of 2026. The significant decrease was mainly driven by the Group’s ongoing efforts to enhance spending efficiency and phasing impact. Higher marketing and promotional investment are planned in the second half of 2026 to accelerate the new product rollout. Advertising and marketing expense of BNC business as a percentage of its revenue decreased from 14.2% in the first half of 2025 to 11.0% in the first half of 2026, mainly due to the high base of investment in the first half of 2025 allocated to marketing campaigns for the new ‘GB’ IMF products. Selling and distribution expenses other than advertising and marketing expense of BNC business as a percentage of revenue decreased from 23.9% in the first half of 2025 to 21.0% of the same period of 2026 thanks to the operating leverage and the Group’s ongoing efforts to enhance spending efficiency. PNC Selling and distribution expenses of PNC business increased by 4.4% to RMB512.0 million for the six months ended 30 June 2026, as compared with the same period of last year. Selling and distribution expenses of PNC business as a percentage of its revenue increased from 45.4% for the six months ended 30 June 2025 to 47.0% for the same period of 2026, mainly due to the additional investment required to support the new products launch and geography expansion including Europe, Asia and ANZ. Advertising and marketing expense of PNC business as percentages of its revenue increased from 13.2% for the six months ended 30 June 2025 to 21.3% for the six months ended 30 June 2026. The increase was mainly due to the additional investment required to support the launch of new products, particularly the new high-margin pet nutritional food and supplement products. The selling and distribution expenses other than advertising and marketing expense of PNC business as a percentage to its revenue decreased from 32.2% in the first half of 2025 to 25.7% in the first half of 2026, which was mainly driven by spending efficiency improvement and the phasing of investments. Administrative expenses Administrative expenses increased by 11.4% from RM B398.5 million for the six months ended 30 June 2025 to RMB443.8 million for the six months ended 30 June 2026. While administrative expenses as a percentage of the Group’s revenue decreased from 5.7% in the first half of 2025 to 5.1% in the first half of 2026 thanks to the Group’s continuous efforts on operating leverage and efficiency improvement.
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– 29 – Other expenses Other expenses for the six months ended 30 June 2026 amounted to RMB404.1 million. Other expenses mainly included research and development (“ R&D ”) expenditure of RM B107.9 million, net fair value losses on derivative financial instruments of RM B154.9 million, net foreign exchange losses of RM B82.4 million, net fair value losses on other non-current financial assets of RMB37.9 million and others. During the six months ended 30 June 2026, R&D expenditure increased by 12.5% as compared with the same period of last year, which was primarily due to higher investment in innovation and product development to support the launch of new products. R&D expenditure as a percentage of the Group’s revenue decreased from 1.4% for the six months ended 30 June 2025 to 1.2% for the six months ended 30 June 2026. The non-cash net fair value losses on derivative financial instruments of RMB154.9 million consisted of: (i) RMB87.5 million of fair value losses on the cross currency swap (“ CCS”) and cross currency interest rate swap (“ CCIRS”) agreements for the Group’s long-term USD debts. Since such CCS and CCIRS are revaluated on each reporting date, the losses mainly represented RMB’s appreciation against USD on the reporting date; (ii) RM B45.7 million of fair value losses on the forward contracts mainly designated to hedge EUR exposures against RMB arising from day-to-day operating activities. Similar to the CCS and CCIRS, such forward contracts are also revaluated on each reporting date, and the losses represented RMB’s appreciation against EUR on the reporting date; and (iii) RM B21.7 million of fair value losses on the early redemption option embedded in the senior notes due in 2028. The net foreign exchange losses of RMB82.4 million mainly represented non-cash losses from the revaluation on intragroup loans. The net fair value losses on other non-current financial assets of RM B37.9 million mainly represented non-cash losses from the fair value change of the existing equity investments held by New H2 Limited. EBITDA and Adjusted EBITDA Adjusted EBITDA achieved a strong growth by 71.9% to RMB1,891.9 million for the six months ended 30 June 2026, c omparing with the same period of 2025. A djusted EBITDA margin for the first half of 2026 improved significantly from 15.7% for the six months ended 30 June 2025 to 21.8% for the same period of 2026. The significant improvement in adjusted EBITDA margin was mainly attributable to the continued operating leverage, product portfolio premiumisation and the Group’s prudent marketing investments during the period, ahead of a more active brand-building and promotional activities planned for the second half of 2026 to accelerate the new product rollout and market expansion. EBITDA for the six months ended 30 June 2026 incr eased by 53.3% from RMB1,033.1 million for the six months ended 30 June 2025 to RMB1,583.3 million.
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– 30 – The adjusted EBITDA was arrived at by reconciling the non-recurring or non-cash items from EBITDA as set out below: Six months ended 30 June 2026 2025 RMB million RMB million EBITDA 1,583.3 1,033.1 Reconciled by: Non-cash items*: (1) Net fair value losses on derivative financial instruments 154.9 74.0 (2) Net foreign exchange losses/(gains) mainly from the revaluation on intragroup loans 82.4 (24.4) (3) Net fair value losses/(gains) on other non-current financial assets 37.9 (5.5) (4) Share of losses of associates 33.4 13.5 Non-recurring items*: (5) One-time consulting fee for group entity structure optimisation – 10.0 Adjusted EBITDA 1,891.9 1,100.7 * Either non-recurring or non-cash items is to be adjusted only if the amount is equal to or greater than RMB10 million. Finance costs During the six months ended 30 June 2026, the Group’s finance costs decreased by 46.2% from RMB579.5 million for the six months ended 30 June 2025 to RMB311.9 million for the same period in 2026. The finance costs for the six months ended 30 June 2026 included (i) RMB307.1 million of interest on the interest-bearing bank loans, senior notes and guaranteed bonds, which decreased by 12.6% year-on-year; (ii) RM B4.9 million of interest on lease liabilities. As the Group has entered into certain cross currency swaps and cross currency interest rate swaps to hedge its interest rate risk and foreign currency risk, respectively, the normalised interest on the interest-bearing bank loans, senior notes and guaranteed bonds was RMB236.4 million for the six months ended 30 June 2026, which decreased by 19.4% from RMB293.3 million for the same period of last year. The implied annual interest expense margin 4 (including the benefit of the above-mentioned hedges) was 5.65% for the six months ended 30 June 2026, which decreased from 5.96% for the year ended 31 December 2025. 4 The implied annual interest expense margin is calculated as normalised interest expense for the last twelve months ended 30 June including the benefit of hedge arrangements divided by the average gross interest- bearing debt over the same period.
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– 31 – Income tax expense Income tax expense increased by 120.1% from RMB235.3 million for the six months ended 30 June 2025 to RMB517.9 million for the six months ended 30 June 2026. The effective tax rate on a pro forma basis decreased from 40.0% in the first half of 2025 to 36.0% in the same period this year, after adjusting for non-deductible and non-cash items on profit before tax, including the net foreign exchange losses/(gains), net fair value losses on derivative financial instruments and other non-current financial assets, share of losses of associates, one- time premium paid for the tender offer and early redemption of the senior notes due in 2026, and the related non-cash write-off of unamortised transaction costs. On a reported basis, the effective tax rate decreased significantly from 76.8% in the first half of 2025 to 45.9% in the first half of 2026. Net profit and Adjusted net profit The adjusted net profit was arrived at by reconciling the non-recurring or non-cash items from net profit as set out below: Six months ended 30 June 2026 2025 RMB million RMB million Net profit 610.6 71.0 Reconciled by: EBITDA adjusted items as listed above 308.6 67.6 Non-cash items*: One-time premium paid for the tender offer and early redemption of the senior notes due in 2026, and the related non-cash write-off of unamortised transaction costs – 224.4 Adjusted net profit 919.2 363.0 * Either non-recurring or non-cash items is to be adjusted only if the amount is equal to or greater than RMB10 million. Non-IFRS financial measures To supplement the Group’s consolidated financial statements which are prepared in accordance with IFRS, the Group also use adjusted EBITDA and adjusted net profit as additional financial measures, which are not required by, or presented in accordance with IFRS. The Group believes that these non-IFRS financial measures facilitate comparisons of operating performance from period to period and company to company by eliminating potential impacts of items that the Company’s management does not consider to be indicative of its operating performance such as certain non-cash or non-recurring items. The use of these non-IFRS financial measures has limitations as an analytical tool, and one should not consider them in isolation from, or as a substitute for analysis of, the Group’s results of operations or financial conditions as reported under IFRS. In addition, these non-IFRS financial measures may be defined differently from similar terms used by other companies.
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– 32 – LIQUIDITY AND CAPITAL RESOURCES Operating activities For the six months ended 30 June 2026, the Group recorded net cash generated from operating activities of RM B1,695.1 million, resulting from pre-tax cash generated from op erations of RMB1,891.1 million, minus income tax paid of RMB196.0 million. The cash conversion rate for the six months ended 30 June 2026, calculated as pre-tax cash generated from operations divided by adjusted EBITDA, was 100.0%. A negative change of RMB17.9 million in working capital was recorded, mainly resulted from: (i) an increase in trade receivables by RMB234.3 million mainly due to the increase in sales; (ii) an increase in prepayments, other receivables and other assets by RMB37.1 million; (iii) a slight increase in inventories, net of write-down of inventories to net realisable value, by RMB16.0 million; and (iv) the above negative impact was partially o ffset by an increase in other payables and accru als of RMB202.7 million, an increase in trade and bills payables of RMB61.4 million and others. Investing activities For the six months ended 30 June 2026, net cash flows used in investing activities amounted to RMB112.1 million, primarily resulted from purchases of property, plant and equipment and intangible assets of RMB38.4 million, the increase in time deposits with original maturity of three months or more when acquired of RMB80.2 million, partially offset by interest received of RMB7.5 million. Financing activities For the six months ended 30 June 2026, net cash flows used in financing activities amounted to RMB1,366.5 million, primarily related to the repayment of interest-bearing bank loans of RMB1,388.0 million, the interest paid for borrowings of RMB271.4 million and others. The above cash outflows were partially offset by the proceed from new interest-bearing bank loans of RMB250.0 million and others. Cash and bank balances As of 30 June 2026, cash and cash equivalents and time deposits as stated in the interim condensed consolidated statement of financial position amounted to RMB1,976.5 million. Borrowings As of 30 June 2026, the Group’s outstanding carrying amount of its borrowings amounted to RMB7,581.6 million, including current portion of RMB1,803.0 million. The carrying amount of borrowings included (i) RMB5, 069.5 million of int erest-bearing bank loans, including current portion of RM B1,308.5 million; (ii) RM B2,098.5 million of senior notes, including current portion of RMB80.9 million; and (iii) RMB413.6 million of guaranteed bonds, all of which was current.
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– 33 – The Group’s gearing ratio decreased from 45.8% as of 31 December 2025 to 38.9% as of 30 June 2026, calculated by dividing the sum of the carrying amount of the borrowings by total assets. As of 30 June 2026, the net leverage ratio significantly decreased from 3.45x as of 31 December 2025 to 2.05x, calculated as the following table. The strong progress in deleveraging was primarily driven by the voluntary prepayment of over RM B1.2 billion (equivalent) on the Group’s USD term loan, supported by its strong internal liquidity which was enhanced by incrementally low-cost RMB borrowings. 30 June 2026 31 December 2025 RMB million RMB million Gross debt 5 7,790.2 8,790.2 Less: Cash and cash equivalents and time deposit 1,976.5 1,709.0 Net debt 5,813.7 7,081.2 Divided by: Adjusted EBITDA 6 2,841.7 2,050.5 Net leverage ratio 2.05x 3.45x Working capital Advance payment is normally required for the sales to business customers in Chinese mainland, except for limited circumstances. The Group usually allows credit sales in overseas markets outside Chinese mainland, with average credit terms ranging from 30 to 90 days from the end of month. The Group’s suppliers generally grant a credit period between 30 and 90 days. The Group seeks to maintain strict controls over outstanding receivables and creditors to minimise credit risk. The average turnover days for trade receivables decreased from 27 days for the six months ended 30 June 2025 to 20 days for the six months ended 30 June 2026. The decrease mainly resulted from the higher revenue contribution from Chinese mainland. The average turnover days of trade and bills payables decreased slightly from 63 days for the six months ended 30 June 2025 to 62 days for the six months ended 30 June 2026. The inventory turnover days decreased from 131 days for the six months ended 30 June 2025 to 118 days for the six months ended 30 June 2026. The inventory turnover days of ANC products decreased from 136 days for the six months ended 30 June 2025 to 107 days for the six months ended 30 June 2026. The inventory turnover days of BNC products decreased from 122 days for the six months ended 30 June 2025 to 113 days for the six months ended 30 June 2026. The decrease in the inventory turnover days of ANC and BNC products was primarily due to the higher-than-expected sales. The inventory turnover days of PNC products increased from 142 days for the six months ended 30 June 2025 to 166 days for the six months ended 30 June 2026. The increase in PNC inventory turnover days was mainly due to strategic inventory build-up to support new market expansion and ensure supply chain continuity. 5 The gross debt as of 30 June 2026 and 31 December 2025 are calculated with the outstanding principal of debt instruments being converted to RMB with constant FX rates as the debt drawdown date. 6 Adjusted EBITDA for the twelve months ended 30 June 2026 and the year ended 31 December 2025.
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– 34 – SIGNIFICANT BUSINESS DEVELOPMENT AFTER THE END OF THE REPORTING PERIOD Capital Structure Optimisation The Group continued to optimise its capital structure through active debt management and to demonstrate its ongoing commitment to deleveraging. On 5 August 2026, the Group signed a new term loan facilities agreement in the amount equivalent to approximately US $320.0 million 7, primarily to refinance its existing term loan facilities due in 2027. The refinancing is expected to extend the Group’s debt maturity profile, reduce finance costs and further enhance its financial flexibility. On 13 August 2026, the Group voluntarily prepaid approximately RMB300 million (equivalent) in respect of its USD term loan, resulting in a further reduction in the Group’s gross debt. Update On Tax Audit on Biostime Healthy Australia Pty Ltd (“BHA”) As disclosed in the Company’s Annual Report for the year ended 31 December 2025, BHA, a subsidiary of the Company, has undergone an audit (the “ BHA Tax Audit ”) conducted by the Australian Tax Office (the “ ATO”) in respect of the value of intellectual property and other assets transferred as part of the Groupwide integration initiatives in 2018, for which BHA paid AUD19 million of tax under the Australian capital gains tax (the “ CGT”) rules. Based on the conclusion of the BHA Tax Audit, on 10 April 2025, the ATO issued official notices of amended assessment requesting: (i) AUD234.5 million of primary tax payable by BHA in respect of the year ended 31 December 2018; (ii) AUD55.2 million of interest and (iii) AUD117.3 million penalty payable by BHA. In June 2025, BHA formally objected to the ATO’s amended assessments to officially dispute these amounts (the “ Objection ”). On 4 July 2025, having considered BHA’s proposals regarding payment arrangement, the ATO confirmed that it required BHA to provide a cash deposit of AUD104 million to the ATO by 15 July 2025, in accordance w ith the ATO administrative practice for disputed tax debts. Consequently, such cash deposit was made on 15 July 2025 and recorded as deposits in BHA’s financial statements as of 31 December 2025 and 30 June 2026. No further deposit is required until the final conclusion of this matter. BHA and its representatives have actively engaged with the ATO’s objection team to discuss technical areas of disagreement and other developments. On 3 July 2026, the ATO issued a written decision substantially disallowing (and allowing in part) BHA’s Objection (resulting in a reduction in primary tax from AUD234.5 million to AUD208.1 million and a reduction in penalty from AUD117.3 million to AUD104.0 million) (the “ Objection Decision ”). In doing so, the ATO has maintained its reliance on its primary position to substitute the value of the transferred assets under the CGT rules, as well as an alternative position under the transfer pricing rules. 7 A revolving credit facility in the amount equivalent to approximately US$10.0 million was also made available under the new term loan facilities agreement.
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– 35 – BHA has been and will continue vigorously defending its position. On 10 July 2026, BHA filed a Notice of Appeal in the Federal Court of Australia (the “ Court ”) to formally initiate legal proceedings in relation to the Objection Decision insofar as it concerns ATO’s tax assessment. On 16 July 2026, BHA filed an application in the Administrative Review Tribunal (the “ Tribunal ”) to seek a review of the Objection Decision insofar as it concerns penalties and interest. A hearing date for each proceeding is yet to be set by the Court and the Tribunal, respectively. BHA continues to be assisted by tax litigation lawyers and preeminent counsel. At this time, in the opinion of the Directors, BHA does not consider that it is probable that there will be a final outflow of funds in relation to the matters in dispute. In the event that BHA is successful in the dispute, BHA will be entitled to a refund of the deposit plus interest. INTERIM DIVIDEND After taking full consideration of the Group’s financial position, net cash flow and capital expenditures, the Board has resolved to declare an interim dividend of HKD0.82 per ordinary share, representing approximately 50% of the G roup’s adjusted net profit for the period of six months ended 30 June 2026. The interim dividend will be paid on or about Monday, 12 October 2026 to the shareholders whose names appear on the register of members of the Company on Wednesday, 16 September 2026. CLOSURE OF REGISTER OF MEMBERS The register of members of the Company will be closed from Monday, 14 September 2026 to Wednesday, 16 September 2026, both days inclusive, during which period no transfer of shares can be registered. The record date is Wednesday, 16 September 2026. In order to qualify for the interim dividend, all transfers accompanied by the relevant share certificates must be lodged with the Company’s Hong Kong branch share registrar and transfer office, Computershare Hong Kong Investor Services Limited, at Shops 1712–1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong for registration not later than 4:30 p.m. on Friday, 11 September 2026. CORPORATE GOVERNANCE CODE The Company’s corporate governance practices are based on the principles and code provisions as set out in the Corporate Governance Code (the “ CG Code ”) contained in Part 2 of Appendix C1 of the Rules Governing the Listing of Securities (the “ Listing Rules ”) on The Stock Exchange of Hong Kong Limited (the “ Stock Exchange ”). The Company has complied with all the code provisions contained in the CG Code for the six months ended 30 June 2026. The Company will continue to enhance its corporate governance practices appropriate to the conduct and growth of its business and to review such practices from time to time to ensure that they comply with the CG Code and align with the latest developments.
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– 36 – MODEL CODE FOR SECURITIES TRANSACTIONS The Company has adopted its own code of conduct regarding Directors’ dealings in the Company’s securities (the “ Company Code ”) on terms no less exacting than the Model Code for Securities Transactions by Directors of Listed Issuers (the “ Model Code ”) as set out in Appendix C3 to the Listing Rules. Specific enquiry has been made of all the Directors and all the Directors have confirmed that they have complied with the Company Code and the Model Code during the six months ended 30 June 2026. The Company has also established written guidelines (the “ Employees Written Guidelines ”) on terms no less exacting than the Model Code for securities transactions by employees who are likely to be in possession of unpublished inside information of the Company. No incident of non-compliance of the Employees Written Guidelines by the relevant employees was noted by the Company during the six months ended 30 June 2026. In case when the Company is aware of any restricted period for dealings in the Company’s securities, the Company will notify its Directors and relevant employees in advance. AUDIT COMMITTEE The audit committee of the Company (the “ Audit Committee ”) was established on 25 November 2010 in compliance with Rules 3.21 and 3.22 of the Listing Rules and with written terms of reference in compliance with the CG Code. The Audit Committee consists of three members, namely, Professor Ding Yuan, Mr. Tan Wee Seng and Mr. Luo Yun, all of whom are non-executive Directors and the majority of whom are independent non-executive Directors. Professor Ding Yuan, who possesses the appropriate professional qualifications or accounting or related financial management expertise, was appointed as the chairman of the Audit Committee. The Audit Committee is mainly responsible for making recommendations to the Board on the appointment, re-appointment and removal of the external auditors and to approve the remuneration and terms of engagement of the external auditors; reviewing the interim and annual reports and accounts of the Group; and overseeing the Group’s financial reporting system, internal control system and risk management system and associated procedures. REVIEW OF INTERIM FINANCIAL STATEMENTS Disclosure of financial information in this interim results announcement complies with Appendix D2 of the Listing Rules. The Audit Committee has held meetings to discuss the internal controls and financial reporting matters of the Company, including the review of the interim report and the unaudited interim condensed consolidated financial statements of the Group for the six months ended 30 June 2026.
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– 37 – The interim condensed consolidated financial statements for the six months ended 30 June 2026 have not been audited but have been reviewed by the Company’s independent auditor, Ernst & Young, in accordance with Hong Kong Standard on Review Engagements 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” by the Hong Kong Institute of Certified Public Accountants. PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES Neither the Company, nor any of its subsidiaries has purchased, sold or redeemed any of the Company’s listed securities (including sale of treasury shares, if any) during the six months ended 30 June 2026. PUBLICATION OF INTERIM RESULTS ANNOUNCEMENT AND INTERIM REPORT This interim results announcement is also published on the websites of the Company (www.hh.global) and the Stock Exchange (www.hkexnews.hk). The interim report for the six months ended 30 June 2026 containing all the information required by Appendix D2 to the Listing Rules will be despatched to the shareholders of the Company (if requested) and available on the above websites in due course. By order of the Board of Health and Happiness (H&H) International Holdings Limited Luo Fei Chairman Hong Kong, 25 August 2026 As at the date of this announcement, the executive directors of the Company are Mr. Luo Fei and Mr. Wang Yidong; the non-executive directors of the Company are Mrs. Laetitia Albertini, Dr. Zhang Wenhui, Mr. Luo Yun and Mrs. Mingshu Zhao Wiggins; and the independent non- executive directors of the Company are Mr. Tan Wee Seng, Mrs. Lok Lau Yin Ching and Professor Ding Yuan.