Hongxing Coldchain (Hunan) (1641) investor relations material

Executive summary

• H1 2026 revenue declined 6.1% YoY to RMB110.801m; net profit fell 75.7% to RMB9.636m as weaker warehouse utilization and customer logistics subsidies pressured margins.

• H shares began trading on 13 January 2026; expansion into food processing and logistics services progressed during the period.

Financial highlights

• Revenue was RMB110.801m versus RMB118.048m; cost of sales rose to RMB78.234m from RMB55.187m, and gross profit fell to RMB32.567m from RMB62.861m.

• Net profit was RMB9.636m versus RMB39.683m; profit before tax was RMB12.213m versus RMB53.307m. EPS was RMB0.10 versus RMB0.53.

• Adjusted net profit was RMB9.636m versus RMB40.202m; 2025 included RMB0.519m of listing expenses, while H1 2026 had none.

• Gross margin declined to 29.4% from 53.3%; other expenses were RMB8.605m, primarily from FX losses converting listing proceeds to RMB.

• Operating cash flow was RMB64.0m; cash and cash equivalents reached RMB354.3m at 30 June 2026, from RMB93.8m at 31 December 2025.

Outlook and guidance

• Processing plant and southern-base expansion target ~8.7% more usable storage capacity; construction completion is targeted by end-2028 and equipment deployment by end-2029.

• Planned upgrades include cloud systems, industrial 5G, AGV forklifts, AI monitoring and customer-facing order and storage tools.

• Four-year plans call for selecting two to three acquisition targets with at least 10 years of operating history and enterprise values of RMB100m–RMB200m, generally seeking majority stakes.

• Logistics collaborations with regional cold-chain providers aim to widen the service network, share resources, reduce costs and extend market reach.