Revenue growth at Zhengzhou Qianweiyangchu Food Co.,Ltd. has begun to drive a profit recovery in the third quarter.
On the evening of October 26, Qianweiyangchu Food disclosed its 2026 third-quarter report. In the third quarter, the company achieved operating revenue of 552 million yuan, up 12.28% year on year; net profit attributable to shareholders was 18.8258 million yuan, up 4.67% year on year; and non-GAAP net profit was 20.6406 million yuan, up 5.82% year on year.
This narrowed the cumulative profit decline for the first three quarters. In the first nine months, the company's revenue was 1.599 billion yuan, up 16.07% year on year; net profit attributable to shareholders was 50.7893 million yuan, down 5.55% year on year; and non-GAAP net profit was 50.3108 million yuan, down 6.13% year on year. In the first half, the declines in attributable and non-GAAP net profit were 10.69% and 12.97%, respectively.
The return to single-quarter profit growth was mainly driven by a larger revenue scale. Based on net profit attributable to shareholders, the third-quarter net margin was about 3.41%, compared with about 3.66% a year earlier. In other words, the company's revenue increased, but the attributable profit left from every 100 yuan of revenue was still slightly less than last year.
Online promotion was an important expense affecting profitability. In the first three quarters, selling expenses were 120 million yuan, up 43.29% year on year, clearly faster than revenue growth, which the company attributed to higher online traffic promotion fees. Based on calculations from the half-year report, third-quarter selling expenses were about 28.47 million yuan, up 22.71% year on year. Although the growth rate slowed from the first half, cost pressure remains.
Income tax expense also weighed on net profit. In the first three quarters, total profit was about 71.63 million yuan, up about 7.97% year on year, but income tax expense rose to 21.58 million yuan, up 67.91% year on year. The company disclosed that the main reason was that deferred tax assets were not recognized for losses at some subsidiaries. This means pre-tax profit had already increased, but higher taxes kept after-tax profit below the year-earlier level.
The business foundation for revenue expansion can be seen in the company's channel changes this year. Qianweiyangchu Food supplies frozen food to restaurant customers while also expanding retail and online consumer scenarios. The half-year report showed that first-half direct sales revenue was 609 million yuan, up 40.22% year on year; distribution revenue was 427 million yuan, down 4.12% year on year. The business directly serving chain restaurants and retail customers shouldered more of the growth task.
Among this, online direct sales revenue reached 104 million yuan, up 131.71% year on year. Products sold included brown sugar glutinous rice cakes, shrimp paste fried dough sticks and sesame balls. The consumer-facing business opened up an incremental market and also required more promotion spending, with revenue growth and higher expenses occurring simultaneously in this channel.
The product mix is also changing. In the first half, revenue from staple foods rose 3.79%, while revenue from snacks and baked desserts rose 24.22% and 31.86%, respectively. The company is expanding sales of products beyond traditional staples, adding items that can enter restaurant menus and family dining tables.
In the first three quarters, the company's net cash flow from operating activities was 141 million yuan, up 26.54% year on year, providing financial support for business expansion. However, while revenue continued to grow, the company also adjusted the pace of putting new production capacity into operation.
An announcement disclosed alongside the third-quarter report showed that the overall time for the Wuhu Baifuyuan project to reach its intended usable state has been postponed to June 2027, while the first phase of the Hebi Baishunyuan project has been postponed to October 2028.
The company said that in recent years output and revenue growth fell short of expectations. Some workshops have already been put into production, and the remaining construction will be advanced in batches to avoid idle capacity or storage space after concentrated release and to match the pace of recovery in market demand.
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