Jiangxi Qiyunshan Food (2797) investor relations material

Executive summary

• Revenue for H1 2026 rose 4.4% year-over-year to RMB167.9 million, driven by growth in online direct sales.

• Gross profit increased 2.2% to RMB84.9 million, but gross margin declined to 50.6% due to higher production staff costs.

• Net profit for the period was RMB20.6 million, down 13.8% year-over-year, mainly due to increased selling and R&D expenses.

• The company completed its Hong Kong listing in July 2026, raising HK$167 million in net proceeds, which remain unutilized as of the report date.

• The company maintained a strong liquidity position with RMB115.1 million in cash and no borrowings.

Financial highlights

• Revenue: RMB167.9 million (+4.4% YoY); gross profit: RMB84.9 million (+2.2% YoY); net profit: RMB20.6 million (-13.8% YoY).

• Gross margin decreased from 51.7% to 50.6% year-over-year.

• Selling expenses rose 7.9% to RMB43.8 million; R&D expenses increased 31.4% to RMB6.7 million.

• Cash and cash equivalents stood at RMB115.1 million as of June 30, 2026.

• Interim dividend was not declared for H1 2026.

Outlook and guidance

• The company aims to leverage health and functional food trends, expand its product pipeline, and enhance consumer experience through new flavors, packaging, and nutritional improvements.

• Strategic focus remains on omni-channel expansion, R&D investment, and brand rejuvenation to consolidate market leadership in the hog plum segment.

• Plans to utilize IPO proceeds by 2028 for production expansion, R&D, online marketing, and sales network growth.

• Aims to drive long-term value for shareholders through innovation and market leadership.