Jiujiuwang Food International Limited reported a profit attributable to shareholders of RMB4.75 million for the six months ended 30 June 2026, up 16.3% from RMB4.08 million a year earlier. The increase was driven by a RMB3.72 million swing in other income—largely the reversal of expected credit losses on trade receivables—and reductions of RMB1.00 million in selling expenses and RMB0.82 million in administrative expenses.
Revenue inched up 1.7% year-on-year to RMB165.22 million, led by higher sales of own-branded confectionery. Cost of sales rose 3.9% to RMB129.45 million, trimming gross profit by 5.5% to RMB35.76 million. Consequently, the gross margin narrowed to 21.6% from 23.3%, reflecting a lower contribution from higher-margin own brands versus OEM products.
Finance costs were broadly stable at RMB6.23 million, while income tax expense fell to RMB0.90 million. Earnings per share stood at RMB0.6 cents, compared with RMB0.5 cents in the prior-year period.
Free cash flow contracted, with cash and cash equivalents down 28.4% to RMB23.66 million, mainly due to larger prepayments and other receivables. Total borrowings were little changed at RMB264.64 million, but a higher equity base saw the gearing ratio edge lower to 69.9% from 73.0% at end-2025. Pledged assets—buildings, plant and right-of-use assets—totaled RMB146.05 million.
The board declared no interim dividend. Management reaffirmed plans to expand production capacity, upgrade equipment, boost e-commerce sales, and invest in product development, while noting ongoing risks such as customer concentration, distributor performance, raw-material volatility, and potential pandemic disruptions.
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