Zhengwei Group Holdings Company (2147) H2 24/25 earnings summary

Executive summary

• Revenue was RMB938.1m for the 18 months ended 30 June 2025; gross loss was RMB12.2m and net loss RMB108.8m, versus FY2023 profit of RMB67.5m. Period lengths differ, limiting comparability.

• Trading drove sales, while manufacturing recorded a substantial segment loss; manufacturing production ceased in 2025, with any resumption dependent on future business and product development.

Financial highlights

• Revenue rose 110.7% to RMB938.1m from RMB445.2m in FY2023, mainly on a RMB685.9m increase in trading sales of dried food products, seasonings and others.

• Cost of sales increased 218.9% to RMB950.3m; direct material costs and RMB36.9m of inventory write-offs contributed to a gross loss of RMB12.2m, versus FY2023 gross profit of RMB147.3m.

• Net loss was RMB108.8m versus FY2023 net profit of RMB67.5m; income tax expense rose to RMB38.3m, including RMB21m tax paid on distributable PRC subsidiary profits.

• Operating cash outflow was RMB157.2m; cash and cash equivalents fell 72.6% to RMB54.6m at 30 June 2025 from RMB199.2m at 31 December 2023.

Outlook and guidance

• Plans include developing snack products in response to consumer preferences, using retailer feedback, and expanding supermarket and concessionary-counter networks, especially in Fujian.

• Marketing priorities include cooperation with supermarket chains and promotion through traditional media, high-traffic locations and WeChat; established retailer relationships are expected to support new product sales.

• Manufacturing production ceased in 2025; resumption depends on future business and product developments.