DaChan Food (Asia) Limited published its 2026 interim results, revealing a return to profitability on the back of a stronger gross margin and continued expansion of its higher-value processed-food segment.
Financial Highlights (RMB, six months to 30 June 2026): • Turnover slipped 0.5 % year on year to 2.90 billion. • Gross profit rose 8.9 % to 332.62 million; gross margin improved to 11.5 % (1H 2025: 10.5 %). • Operating profit reached 25.99 million, versus a 12.32 million loss a year earlier. • Profit before tax totalled 18.34 million (1H 2025: 18.21 million loss). • Net profit came in at 8.18 million; profit attributable to shareholders was 0.09 million, compared with a 35.07 million loss in the prior-year period. • Basic earnings per share were RMB0.0001 (1H 2025: loss of RMB0.035).
Segment Performance: 1. Processed Food – Revenue grew 5.1 % to 1.37 billion, with Mainland China up 3.0 % and exports up 22.4 %. Segment gross profit rose 3.3 % to 235.35 million, generating 70.8 % of Group gross profit; margin held at 17.2 %. 2. Meat – Revenue inched up 1.1 % to 0.79 billion, while gross profit nearly doubled to 44.71 million; margin widened to 5.7 % from 2.9 %, reflecting early gains from the division’s demand-driven model. 3. Feeds – Revenue declined 10.8 % to 0.74 billion amid pig-breeding consolidation, but gross margin improved to 7.1 %. Gross profit slipped 4.7 % to 52.57 million.
Cash Flow and Balance Sheet: • Net cash generated from operations was 130 million, up 70 million year on year. • Cash and bank deposits stood at 564.45 million (31 Dec 2025: 532.36 million). • Interest-bearing borrowings fell to 376.41 million, cutting the debt-to-equity ratio to 15.4 % (31 Dec 2025: 18.1 %). • Capital expenditure totalled 30.62 million. • No interim dividend was declared.
Strategic Progress and Outlook: Management affirmed the food-led transformation strategy, highlighting continued investment in processed-food capacity, supply-chain digitalisation and R&D. The Group will pursue: • Scaling high-margin processed foods while broadening export destinations beyond Japan. • Further cost optimisation across the broiler value chain and expansion of high-value meat products. • Diversification of feed products, including ruminant lines, to mitigate sector consolidation risks. • Ongoing ESG integration, with a Wind ESG “A” rating, and advancement of intelligent manufacturing at its Bengbu facilities.
Governance: During the period DaChan Food complied with Hong Kong’s Corporate Governance Code, save for the combined roles of Chairman and CEO, held by James Chun-Hsien Wei, which the Board believes supports strategic execution. The audit committee, composed solely of independent non-executive directors, reviewed the interim results and confirmed no disagreement with the accounting policies adopted.
No material events occurred after the reporting date, and neither the Company nor its subsidiaries purchased, sold or redeemed any listed securities during the period.