ZHENGWEI GROUP FY2026 Results: Revenue Slips to RMB 745.85 Million, Loss Narrows Amid Return to Gross Profit

Bulletin Express
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ZHENGWEI GROUP Holdings Company Limited reported audited results for the year ended 30 June 2026 (FY2026), alongside comparative figures for the 18-month period ended 30 June 2025 (Previous Period).

Financial Performance • Revenue declined 20.45 % to RMB 745.85 million from RMB 938.12 million in the Previous Period, reflecting softer trading volumes.

• The Group returned to gross profitability, posting a gross profit of RMB 43.55 million versus a gross loss of RMB 12.22 million previously, mainly due to the absence of the one-off inventory write-off recorded last period.

• Net loss narrowed to RMB 68.65 million, compared with a RMB 108.75 million loss in the Previous Period. Basic and diluted loss per share improved to RMB 1.13 from RMB 2.25.

• Operating expenses moved markedly: distribution and selling expenses rose to RMB 62.97 million (Previous Period: RMB 13.19 million) on higher advertising outlays, while administrative expenses fell to RMB 22.53 million (Previous Period: RMB 39.84 million) following lower depreciation and staff costs.

Balance Sheet and Liquidity • Total assets were RMB 598.27 million; net assets stood at RMB 292.61 million (30 June 2025: RMB 352.61 million).

• Cash and cash equivalents declined to RMB 13.07 million from RMB 54.64 million.

• Net current assets were RMB 282.00 million (30 June 2025: RMB 310.29 million).

• Borrowings reached RMB 200.00 million, lifting the gearing ratio to 40.6 %.

Cash Flow • Operating activities used RMB 251.89 million (Previous Period: RMB 157.20 million). • Investing activities contributed RMB 6.50 million, driven by asset disposals. • Financing inflows of RMB 203.81 million mainly reflected new bank borrowings and a share placement completed in January 2026.

Corporate Actions • A 20-to-1 share consolidation became effective on 29 December 2025, reducing issued shares from 1.12 billion to 56.00 million.

• A placement of 11.20 million new shares at HKD 0.80 each on 22 January 2026 raised net proceeds of about HKD 8.71 million for working-capital purposes.

Audit Qualification The external auditor issued a qualified opinion, citing limitations in obtaining sufficient records related to the disposal of a former subsidiary group during the Previous Period. The qualification affects only comparative figures; management expects it to be removed in the FY2027 statements.

Subsequent Events On 3 August 2026 the Board proposed doubling authorised share capital to USD 160.00 million and launching a six-for-one rights issue at HKD 0.40 per share, potentially raising up to HKD 161.28 million. Completion of the rights issue and related placing is targeted for 4 November 2026, subject to conditions.

Dividend No final dividend was declared for FY2026.

Outlook Management intends to expand sales channels, enhance marketing—particularly in southeast China—and roll out new snack lines to capture evolving consumer tastes while focusing on cost control and working-capital management.

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