Hongxing Coldchain (Hunan) (1641) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 1.3% YoY to RMB236.5m, while profit for the year fell 7.9% to RMB76.3m.

• Frozen food storage and investment-property leasing revenue increased, partially offset by lower loading-services and other revenue.

Financial highlights

• Gross profit increased 0.3% YoY to RMB123.8m; gross margin declined to 52.3% from 52.8%.

• Adjusted net profit, excluding RMB1.0m of listing expenses, fell 6.7% YoY to RMB77.3m; EPS declined to RMB1.02 from RMB1.11.

• Other income and gains fell 34.9% to RMB6.3m, mainly due to lower interest income; finance costs rose to RMB4.2m from RMB1.2m.

Outlook and guidance

• Plans include a new frozen-food processing plant and southern-base expansion, increasing usable storage capacity by ~8.7%; construction is expected to finish by end-2028 and equipment deployment by end-2029.

• Plans call for AI and automation upgrades, including AGV forklifts, AI cameras, automated analytics, customer mobile tools and live operational dashboards.

• Over the next four years, intends to select 2–3 acquisition targets with at least 10 years of operating history and enterprise values of RMB100m–RMB200m, generally seeking majority interests.

• Plans to broaden market reach through collaborations with local cold-chain logistics providers and expand logistics-resource sharing.