Yihai Kerry Arawana Holdings (300999) H2 2025 earnings summary

Executive summary

• Achieved revenue of ¥245.13 billion, up 2.87% year-over-year; net profit attributable to shareholders was ¥3.15 billion, up 26.01% year-over-year; adjusted net profit (excluding non-recurring items) surged 193.68% year-over-year to ¥2.84 billion.

• Profit growth driven by increased sales in kitchen foods, feed ingredients, and oil technology products, as well as improved profitability in flour and rice segments due to lower raw material costs and effective procurement and marketing strategies.

• Adjusted for one-off litigation provisions, net profit would have been ¥3.89 billion, up 55.31% year-over-year.

• Significant litigation and tax disputes led to provisions totaling ¥7.33 billion, impacting reported net profit.

Financial highlights

• Revenue: ¥245.13 billion, up 2.87% year-over-year.

• Net profit attributable to shareholders: ¥3.15 billion, up 26.01% year-over-year.

• Adjusted net profit (excluding non-recurring items): ¥2.84 billion, up 193.68% year-over-year.

• Operating cash flow: ¥15.44 billion, up 155.80% year-over-year.

• Gross margin: 6.43% (up 1.07 percentage points year-over-year).

• Basic and diluted EPS: ¥0.58, up 26.09% year-over-year.

Outlook and guidance

• Expects continued growth in kitchen foods and feed ingredients, with focus on high-end, healthy, and functional products.

• Will expand R&D investment, digital transformation, and sustainable development initiatives.

• Plans to strengthen core business, optimize cost structure, and enhance channel integration.