Gelonghui, May 17 | H&H International Holdings (01112.HK) announced that for the three months ended March 31, 2024, total revenue fell 8.8% year-on-year (down 9.3% on a similar comparison basis) to RMB 2,871.4 million on a reporting basis, mainly due to the decline in sales of infant formula after switching to the infant formula series approved by the new national standard. However, our ultra-premium infant formula segment continues to gain market share, making wholesale sales perform better than shipping sales.

The Adult Nutrition and Care Products segment maintained double-digit growth, driven by strong expansion in mainland China, Australia and New Zealand (“ANZ”) and other markets. Our growth in mainland China has outpaced overall market growth.

The Pet Nutrition and Care Products segment showed a slight increase of 3.4% year-on-year on a reported basis (0.3% increase on a similar comparative basis). The year-on-year growth slowdown is mainly due to Solid Gold's high-end product portfolio and channel optimization efforts.

Nutritional Supplements1 in the Adult Nutrition and Care Products, Infant Nutrition and Care Products, and Pet Nutrition and Care Products segment continued to have high gross profit and revenue growth, accounting for 70.3% of our total revenue.

Liquidity remained stable, with a cash balance of RMB 2.1 billion. Additionally, we have completed the issuance of RMB bonds and additional US dollar bonds, and obtained significant credit commitments in the form of RMB and US dollar loans to support our future refinancing of our existing US dollar term loans and extension of debt terms.