BUTONG GROUP (06090) released its unaudited interim results for the six months ended 30 June 2026.

Financial Performance • Revenue climbed 11.70% year-on-year to RMB 810.50 million, driven mainly by robust gains in feeding gear (+78.90%) and baby-care products (+12.80%). • Net profit attributable to shareholders surged 98.30% to RMB 96.20 million. • Gross profit rose 13.40% to RMB 406.40 million; gross margin improved to 50.10% from 49.40% a year earlier. • Adjusted net profit (non-HKFRS) increased 32.20% to RMB 103.20 million. • R&D spend more than doubled (+137.70%) to RMB 25.50 million, equivalent to 3.10% of revenue, reflecting intensified investment in “physical AI” products. • Selling and distribution expenses grew 7.30% to RMB 240.90 million, trimming their share of revenue to 29.70% (1H 2025: 30.90%). • Finance costs dropped sharply to RMB 0.27 million after the September 2025 conversion of redeemable preferred shares.

Sales Mix and Channels • Online revenue reached RMB 583.90 million, accounting for 72.10% of total sales. • Offline revenue advanced to RMB 226.60 million, lifting its contribution to 27.90% (1H 2025: 26.80%). • Travel gear contributed RMB 271.20 million, sleep gear RMB 81.70 million, feeding gear RMB 111.40 million, and baby-care products RMB 346.20 million.

Balance Sheet and Cash Flow • Cash and cash equivalents stood at RMB 829.10 million; restricted deposits were RMB 13.56 million. • The Group reported no bank borrowings; gearing ratio eased to 30.40% (31 Dec 2025: 33.40%). • Net cash from operations totaled RMB 136.30 million; capital expenditure reached RMB 96.20 million, mainly for the new Ningbo plant.

Capital Management • The Board declared no interim dividend. • The Company repurchased 1.39 million shares on the Stock Exchange for HK$60.83 million, held as treasury shares. • A new share award scheme was adopted on 12 January 2026; 361,500 shares have been purchased for future grants.

Business Outlook Management targets accelerated AI upgrades of core nursery products in 2H 2026, progressive roll-out of new physical AI categories, completion of a digitalised Ningbo factory, and deeper overseas channel localisation while preserving a China-centric R&D and supply-chain hub.

Governance and Compliance • The Group remained fully compliant with Part 2 of the Corporate Governance Code and the Model Code. • The Audit Committee reviewed the interim results; KPMG provided an unmodified review conclusion. • No major acquisitions, disposals, contingencies, or post-period events were reported.

The interim results underscore BUTONG GROUP’s strategy of dual-engine growth through product innovation and channel expansion, backed by a robust cash position and strengthened profitability.