Zhengwei Group Holdings Company (2147) H1 24/25 earnings summary

Executive summary

• Unaudited results covered the 12 months ended 31 Dec 2024, compared with audited 2023 figures; the next audited period will cover 1 Jan 2024–30 Jun 2025 after the financial year-end change to 30 June.

• Revenue rose 34.3% to RMB598.1m, but higher direct material costs cut gross profit to RMB9.4m and drove a RMB53.6m net loss.

Financial highlights

• Revenue increased to RMB598.1m from RMB445.2m, mainly on higher sales of dried delicacies, seasonings and other products.

• Cost of sales rose 97.5% to RMB588.6m from RMB298.0m, chiefly due to higher direct material costs.

• Gross profit fell 93.6% to RMB9.4m from RMB147.3m; gross margin declined to 1.6% from 33.1%.

• Net loss was RMB53.6m versus net profit of RMB67.5m; loss per share was RMB0.06 versus earnings per share of RMB0.09.

• Other gains and losses were a RMB6.8m loss, mainly from disposal losses on property, plant and equipment; other revenue fell to RMB4.2m from RMB6.4m, mainly on lower grants.

Outlook and guidance

• Planned launches include mushroom snacks and meat snacks such as boneless chicken feet, beef jerky, pork trotters, quail eggs and quail meat snacks.

• Plans include expanding supermarket and concession-counter networks in southwestern China, especially Sichuan, and increasing promotions through supermarket partners, traditional media and social platforms including WeChat.