Natural Food International Holding Limited Announces Robust FY2025 Results and Significant Dividend Hike

Key Highlights from the Annual Report 2025

Natural Food International Holding Limited (the “Company” or “the Group”) has released its Annual Report for the year ended 31 December 2025, delivering a strong set of financial results, enhanced shareholder returns, and a comprehensive update on its corporate governance, risk management, and future outlook. Below, we provide an in-depth breakdown, with a focus on matters that may be of material interest to investors and could impact the Company’s share price.

1. Financial Performance Surges in FY2025

• Revenue Growth: The Group reported revenue of RMB 2,525.6 million for FY2025, a robust increase of 22.6% compared to RMB 2,060.4 million in FY2024. This marks a fifth consecutive year of top-line growth.
• Profitability: Profit before tax rose sharply by 48.4% to RMB 325.8 million (FY2024: RMB 219.6 million). Net profit attributable to shareholders surged to RMB 265.7 million, up 41.5% from RMB 187.9 million in the prior year.
• Gross Profit Margin: Gross profit stood at RMB 1,642.5 million (FY2024: RMB 1,356.3 million), maintaining a solid margin despite inflationary pressures and higher selling/distribution expenses.
• Earnings Per Share: Basic EPS increased to RMB 0.122 (FY2024: RMB 0.087), reflecting improved profitability and efficient cost control.

2. Substantial Final Dividend Proposed

• The Board recommends a final dividend of HK\$0.069 per share (approx. RMB 0.061), a significant increase from HK\$0.04 per share in FY2024, representing a 72.5% year-on-year hike.
• Total final dividends amount to approximately RMB 132.9 million, equating to 50.02% of net profit—a notable increase in the payout ratio compared to previous years.
• The dividend proposal is subject to shareholder approval at the AGM on 22 May 2026, with payment expected on 12 June 2026.
• This dividend policy signals the Group’s confidence in its cash flow and future prospects, and is likely to be positively received by income-focused investors.

3. Use of Proceeds and Capital Management

• As of 31 December 2025, approximately HK\$42.8 million of IPO proceeds remain unutilized, with ongoing investments in expanding the integrated distribution platform and technology infrastructure.
• The Group maintains a strong balance sheet, with a low gearing ratio of 0.34% (FY2024: 0.64%), ensuring ample financial flexibility for future growth or additional shareholder returns.

4. Strategic and Operational Updates

• Business Expansion: The Company continues to expand its operations in the PRC, with a focus on integrated health food solutions and technological innovation.
• Major Customers & Suppliers: The largest customer accounted for 17.5% of sales, and the five largest for 19.1%. Supplier concentration remains manageable, with the top five suppliers representing 19.9% of total purchases.
• Risk Management: The Group has implemented comprehensive risk management frameworks and maintains regular reviews with external consultants to assess internal controls and ESG performance.

5. Share Option and Award Schemes

• The Group recognizes the importance of aligning management and employee interests with shareholders, evidenced by the ongoing grant of share options and awards. In 2025, RMB 1.79 million was recognized as share award expense.
• As of year-end, 15.1 million shares were held by the trustee under the Share Award Scheme, pending allocation.

6. Corporate Governance and Compliance

• The Company confirms full compliance with the Hong Kong Listing Rules and Corporate Governance Code.
• No material non-compliance, litigation, or regulatory breaches were reported during the year.
• No significant events after the reporting period, apart from routine business updates, were disclosed.

7. Forward-Looking Statements and Outlook

• The Board remains optimistic about the growth trajectory, citing ongoing investments in product innovation, distribution channels, and talent development.
• Succession planning and board performance reviews are being prioritized, with potential for additional external advisory involvement in the future.

8. ESG and Sustainability Commitments

• The Group maintains a strong commitment to environmental compliance, social responsibility, and governance best practices. Internal and external ESG audits are conducted regularly, with updates to be published in the upcoming ESG report.
• Charitable contributions for the year amounted to RMB 638,704, underscoring the Group’s community engagement.

Key Matters for Shareholders and Potential Price-Sensitive Information

• Significant Dividend Increase: The proposed payout ratio (50% of net profit) is a material hike and could trigger a rerating by yield-seeking investors.
• Sustained Profit Growth: The strong earnings trajectory and margin improvements reflect underlying business strength and market share gains.
• Ongoing Capital Deployment: Continued investment in technology and distribution channels with a low gearing ratio positions the Group for further expansion or potential M&A activity.
• No Material Litigation or Regulatory Issues: The absence of negative surprises supports investor confidence.
• Board and Management Commitment: Ongoing reviews of board performance, succession, and governance standards ensure the Company’s long-term sustainability.

Conclusion

The strong financial performance, material dividend hike, and prudent capital management all point to a positive outlook for Natural Food International Holding Limited. These developments are likely to be of material interest to shareholders and the broader market, with the dividend increase in particular representing a potential catalyst for share price appreciation.

Disclaimer: The above summary is based on the 2025 Annual Report of Natural Food International Holding Limited and is intended for informational purposes only. This article does not constitute investment advice. Investors are advised to consult professional financial advisors before making any investment decisions.

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