Dekon Food and Agriculture Group (2419) H1 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 was RMB10,088.7 million, down 13.7% year-over-year, mainly due to a sharp decline in pig selling prices.

• Net loss attributable to shareholders was RMB1,158.8 million, compared to a profit of RMB1,174.1 million in the same period last year.

• Gross profit margin dropped to -6.4% from 18.3% year-over-year, reflecting industry-wide losses in the hog sector.

• EBITDA was negative RMB728.9 million, compared to positive RMB1,815.4 million in the prior year.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: RMB10,088.7 million (down 13.7% YoY).

• Net loss: RMB1,305.2 million (vs. profit of RMB1,226.7 million YoY).

• Gross profit margin: -6.4% (vs. 18.3% YoY).

• Basic and diluted EPS: RMB-3.00 (vs. RMB3.02 YoY).

• Cost of sales increased 12.3% to RMB10,729.1 million, driven by expanded hog operations.

Outlook and guidance

• Hog and poultry sectors are expected to show a positive trend in the second half, but market and cost uncertainties remain.

• Focus on production efficiency, cost control, digital transformation, and risk hedging in the hog segment.

• Poultry segment to drive profitability through cost reduction and high-value product expansion.

• Ancillary products segment to enhance capacity utilization and expand processed meat products.

• Continued ESG and sustainability initiatives, including ecological recycling and food safety.