Hengan International (01044.HK), China's leading personal hygiene products manufacturer, posted weaker first-half 2026 earnings as aggressive promotions across China's domestic market weighed on sales. Revenue fell 6.1% year-on-year to RMB 11.09 billion, approximately NT$45 billion or $347.9 million, while profit attributable to equity holders declined 8.7% to RMB 1.25 billion, approximately NT$5.1 billion or $39.3 million. Basic earnings per share were RMB 1.104, and the interim dividend was unchanged at RMB 0.70 per share, approximately NT$3.3. Despite the sales decline, lower raw material prices and a higher mix of premium, higher-margin products supported profitability at the gross level. Gross profit rose about 2.7% year-on-year to RMB 3.91 billion, approximately $122.8 million, and gross margin expanded 3 percentage points to about 35.3%. Tissue paper revenue fell nearly 6% to about RMB 6.75 billion, while hygiene products revenue declined about 3% to about RMB 3.2 billion. E-commerce and new retail channels were a relative bright spot, with sales from emerging models such as instant retail and livestream commerce rising 4.6% year-on-year and their contribution increasing to 38.3% from 34.4% a year earlier. Hengan said premium products including the "Tianshan Velvet Cotton" sanitary napkin series and "Hearttex" wet wipes series kept strong momentum, while newly launched "Xiao Nuanxin" Oriental cotton sanitary napkins and the "Into the Wild" premium tissue series added support amid a broader value-consumption trend. For the second half, the group expects operating conditions to remain difficult but said industry consolidation may ease price competition. It aims to maintain stable full-year revenue by raising premium product penetration, refining its omnichannel sales layout, strengthening brand promotion and allocating promotional spending appropriately, while expecting tissue paper revenue to be flat to slightly lower for the full year and overall profitability to remain resilient.