Great-Sun Foods Co.,Ltd. (603336.SH) released its 2026 semi-annual report on the evening of August 27. Despite short-term pressure in its core fruit and vegetable business due to industry cycles, the company's total profit surged 254.71% year-on-year, with gross margin jumping from 9.06% to 16.22%—a substantive improvement in its earnings structure.
This shift stems from the company's acquisition of Jiangxi Shimei Pharmaceutical Co., Ltd. in June, which was consolidated into its financial statements, marking the official payoff phase of its "fruit and vegetable plus pharmaceutical" dual-engine strategy. In the first half of 2026, Great-Sun Foods recorded revenue of RMB 418 million and net profit attributable to shareholders of RMB 5.17 million. While both top-line revenue and attributable net profit declined year-on-year, a deeper look at the financial metrics reveals total profit reached RMB 26.98 million, up 254.71% from RMB 7.61 million in the same period last year. Gross margin expanded by 7.16 percentage points to 16.22%, while the debt-to-asset ratio fell 2.56 percentage points to 36.34%.
The gap between total profit and attributable net profit is primarily due to Shimei's consolidation only beginning in June, with the semi-annual report capturing roughly one month of pharmaceutical revenue. Additionally, the company holds 41.128% of Shimei, resulting in a significant minority interest deduction, while one-off integration costs further weighed on attributable earnings. As third-quarter, annual, and subsequent full-year consolidated data emerge, the pharmaceutical segment's contribution to profitability is expected to become increasingly visible.
On April 27, Great-Sun Foods announced plans to acquire 41.128% of Shimei for RMB 700.052 million. By June 3, the company confirmed completion of the share transfer and control processes, achieving effective management control and consolidating Shimei into its statements. Founded in 2002, Shimei specializes in the R&D, production, and sale of cardiovascular and chiral drugs, operating national-level enterprise technology centers. Its key products include levamlodipine besylate tablets and perindopril series.
Financially, Shimei generated revenue of RMB 313 million in 2024 and RMB 355 million in 2025, with net profits of RMB 107 million and RMB 145 million respectively—achieving a net margin of 40.8% in 2025. As of end-2025, its net assets stood at RMB 564 million, total liabilities at just RMB 85.73 million, and a debt-to-asset ratio of approximately 13.2%, with negligible interest-bearing debt and robust operating cash flow. Compared with Great-Sun Foods' full-year 2025 attributable net profit of RMB 17.81 million, Shimei's profit scale exceeds the listed company's original earnings level by more than eightfold.
Operational data for the first month post-consolidation also proved strong. According to the company's second-quarter operating data announcement, Shimei produced 68.87 million tablets and sold 113.79 million tablets, with sales volume far exceeding production. Since Shimei was only formally consolidated in June, its impact on Great-Sun Foods' H1 results is limited to partial months. As full-year data becomes available, the pharmaceutical business's contribution to revenue and profit will expand further.
In its traditional fruit and vegetable segment, some H1 operating metrics showed volatility. The company attributed this to climate conditions, planting cycles, and shifts in market supply and demand. Data shows second-quarter fruit production fell 46.96% year-on-year. Historically focused on procurement, planting, processing, warehousing, and sales of fruit and vegetable products, Great-Sun Foods maintains a supply chain and distribution system. The company stated it will continue optimizing supply chain management to keep the core business stable.
Pharmaceuticals now represent a new growth segment. The company has said it will adhere to prudent operations, stabilizing the fruit and vegetable foundation while strengthening pharmaceutical business quality and industrial substance. In the short term, the mature pharmaceutical platform provides stable earnings and cash flow support; over the medium to long term, the company plans to expand its pharmaceutical footprint through industrial cooperation, pipeline introductions, and resource integration.
Overall, Great-Sun Foods' H1 2026 results reflect a structural shift in its business mix. Total profit climbed over 250% year-on-year, gross margins improved markedly, and Shimei's consolidation began only in June. With full consolidation of the pharmaceutical asset in subsequent periods, its operational performance and progress on earnings commitments will be key metrics to watch for the company's future earnings trajectory.
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