DaChan Food (Asia) Limited reported a notable rebound in profitability for the three months ended 31 March 2026, converting last year’s loss into a profit and posting improved margins despite a modest revenue contraction.

Revenue and Profitability • Turnover fell 2.0% year-on-year to RMB1.38 billion as the group deliberately trimmed lower-margin broiler and feed activities. • Gross profit climbed 15.2% to RMB172.93 million, lifting the gross margin to 12.6% from 10.7% a year earlier. • Profit attributable to shareholders reached RMB3.62 million, versus a RMB12.29 million loss in Q1 2025. Basic EPS turned positive at RMB0.004. • Operating profit stood at RMB18.60 million (Q1 2025: operating loss of RMB6.31 million). Finance costs rose to RMB4.22 million, while tax expense increased to RMB6.88 million.

Segment Highlights • Processed Foods: Revenue grew 5.2%, and gross profit increased 13.8%, contributing 70.3% of group gross profit. Investment in R&D, capacity expansion and digitalisation strengthened the segment’s resilience amid intensified domestic competition. • Feeds: Revenue declined 11.4% due to continued consolidation in the pig-breeding sector; however, refined cost control lifted gross profit by 8.8%. The team deepened cooperation with medium-to-large farms and explored niche categories such as ruminant feed. • Meat: Revenue dropped 3.7%, but gross profit surged 36.8% following a shift to demand-driven production, enhanced supply-chain coordination and expansion of value-added, differentiated products.

Balance-Sheet Metrics • Cash and cash equivalents totalled RMB516.00 million, representing 14.2% of total assets. • Net assets reached RMB2.44 billion. • Current ratio eased to 1.42 from 1.68 at end-2025, mainly reflecting higher short-term borrowings (RMB386.99 million, up from RMB210.72 million). • Interest-bearing borrowings to equity ratio edged down to 16.9% (end-2025: 18.1%).

Strategic Priorities for 2026 Management will: 1. Position the high value-added food segment as the primary growth engine, focusing on cost optimisation and channel diversification. 2. Consolidate export strengths in Japan while expanding into other international markets. 3. Advance a “production-based-on-sales” model in the meat segment, emphasising premium products and optimised channel mix. 4. Broaden the feed customer base through product diversification and niche categories.

With a disciplined balance sheet and sharpened operational focus, DaChan Food aims to enhance supply-chain efficiency through digital and intelligent upgrades, reinforcing competitiveness across its integrated agri-food portfolio.