According to the Zhitong Finance App, Hengan International (01044) announced interim results for the six months ended June 30, 2026, with revenue of 11.091 billion yuan (RMB, same below), down 6.1% year on year; profit attributable to equity holders was 1,254 billion yuan, down 8.7% year on year; basic income per share was 1.104 yuan. It is proposed to pay an interim dividend of RMB 0.70 per share.
During this period, competition in the domestic household goods market continued to heat up. Facing the severe business environment, Hengan grasped the demand for personal care product upgrades and new retail channel growth opportunities, adhered to a stable price strategy, deepened high-end products and omnichannel sales layout, and actively responded to supply chain fluctuations. The overall performance was superior to that of its peers. Sales performance was under pressure due to intense market promotion competition, and the Group's revenue for the first half of 2026 fell 6.1% year on year. In the second half of 2026, the business environment is still full of challenges, but it is expected that the sales contribution of high-end products will continue to grow steadily, which will help further enhance profitability. The Group will strive to maintain stable revenue throughout the year by optimizing the omni-channel sales layout, strengthening brand promotion and moderately investing in promotional resources.
The Group adapts to the new consumption model integrating online and offline and actively promotes omnichannel sales strategies. During the period, the Group vigorously developed e-commerce and new retail channels, including emerging channels such as instant retail and live streaming to broaden the Group's revenue sources. E-commerce and new retail sales revenue increased 4.6% year-on-year during the period, accounting for 38.3% of sales (first half of 2025:34.4%). On the other hand, the Group is actively exploring new growth points in traditional channels, and sales benefits are particularly remarkable in the hygiene products market. Furthermore, the Group continues to promote high-end products and enrich the product portfolio to meet consumers' higher requirements for product functionality and added value, enhance the brand image, and provide strong support for long-term development. Key high-end products, including the “Tianshan Cashmere Cotton” sanitary napkin series and the “Heart to Heart” wet wipes series, etc., maintained a good sales momentum during the period and effectively raised profit levels. In addition, the Group's new “Little Warm Heart” Oriental Cotton Sanitary Napkins and the “Born to the Wild” high-end series of tissues all met the “value consumption” trend, injecting momentum into the group's overall revenue.
During the review period, raw material prices declined and the share of high-end high-margin products increased, effectively offsetting the impact of the Group's overall sales decline on gross profit. As a result, the Group's overall gross profit increased by about 2.7% year on year in the first half of 2026, and gross margin also increased by 3 percentage points year on year to about 35.3% (first half of 2025:32.3%). It is expected that in the second half of 2026, the Group's adaptability to supply chain risks will improve as a result of stabilizing raw material prices, the Group's scale advantage in raw material procurement, and continued growth in high-end high-margin products, and overall profitability is expected to remain steady.
During the period, operating profit increased by 12.6% to approximately RMB 1.98 billion (first half of 2025: RMB 1,757 billion), mainly due to improvements in the Group's overall gross profit. Profit attributable to the company's equity holders fell by about 8.7% to approximately RMB 1,254 billion (first half of 2025: RMB 1,373 billion). In the first half of 2026, the Group's basic earnings per share were RMB 1.104 (first half of 2025: RMB 1.206).