Wens Foodstuff Group (300498) investor relations material

Executive summary

• Revenue for H1 2026 was ¥46.75 billion, down 6.23% year-over-year; net loss attributable to shareholders was ¥4.37 billion, a 225.65% decrease from last year due to a sharp decline in hog prices and industry-wide losses.

• Cash flow from operations remained positive at ¥421.62 million, but dropped 93.48% year-over-year.

• The company maintained strong liquidity, with cash and equivalents at ¥6.11 billion and available bank credit exceeding ¥30 billion.

• No interim dividend was declared for the period.

Financial highlights

• Operating income: ¥46.75 billion, down 6.23% year-over-year.

• Net loss attributable to shareholders: ¥4.37 billion, compared to a profit of ¥3.47 billion last year.

• Gross margin for hogs dropped sharply due to a 29.67% decline in average selling price; chicken segment saw a 7.10% increase in average price and improved profitability.

• EBITDA to total debt ratio: -4.15% (down from 43.25%); interest coverage ratio: -9.91 (down from 9.60).

• Total assets at period end: ¥93.62 billion, up 4.59% from year-end 2025.

• Net assets attributable to shareholders: ¥35.81 billion, down 14.90% from year-end 2025.

Outlook and guidance

• The company expects hog supply to stabilize in H2 2026, with potential for price recovery as sow inventories decline.

• Chicken prices are expected to remain stable, with the company leveraging its leading market position.

• Management is focused on cost control, channel reform, and digital transformation to enhance resilience.