Zhengwei Group Holdings Company (2147) H2 24/26 earnings summary

Executive summary

• FY2026 revenue was RMB745.8m and gross profit RMB43.6m, versus revenue of RMB938.1m and gross loss of RMB12.2m in the 18-month comparative period; the periods are not directly comparable.

• Net loss narrowed to RMB68.7m from RMB108.8m; FY2026 results include a RMB19.9m loss on disposal of property, plant and equipment.

• Trading became the sole revenue-generating business after manufacturing activity was suspended and bakery production ceased.

Financial highlights

• Revenue was RMB745.849m; cost of sales was RMB702.295m and gross profit RMB43.554m, compared with an RMB12.215m gross loss in the 18-month comparative period.

• Net loss was RMB68.652m versus RMB108.752m; basic and diluted loss per share was RMB1.13 versus RMB2.25, with the comparative EPS restated.

• Distribution and selling expenses rose to RMB63.0m from RMB13.2m, mainly due to roughly RMB40m of additional advertising for poultry and meat trading.

• Other gains and losses were a net loss of RMB21.1m, including RMB19.9m on equipment disposal; finance costs rose to RMB4.8m from RMB0.1m.

Outlook and guidance

• Plans include developing new snack products, expanding supermarket and concessionary-counter networks in Southeast China, especially Fujian, and increasing promotion through retail partners, traditional media and WeChat.

• Management intends to strengthen brand exposure and product accessibility across the PRC, using established retailer relationships and feedback on consumer preferences.