COFCO JOYCOME (01610) has issued a profit warning, announcing that for the six months ending June 30, 2026, it expects a loss attributable to shareholders of approximately RMB 1.0 billion to RMB 1.2 billion (unaudited), before the fair value adjustment on biological assets.

This compares to a profit attributable to shareholders of approximately RMB 198 million in the same period of 2025, before adjustments. The group's performance before adjustments has declined year-on-year.

The main reason for the downturn is the lower selling price of live hogs during the reporting period, which squeezed profit margins in the breeding business. Throughout the reporting period, the company continued to deepen its full-value-chain cost management. Through the ongoing advancement of breeding research and the optimization of procurement, production, and health management, breeding costs have significantly improved. At the same time, the company used live hog futures tools to partially hedge operational risks.

Additionally, the company intensified new product development, brand investment, and channel expansion, leading to strong overall performance in the brand business. The feed business also deepened its focus on product innovation and market expansion, achieving year-on-year growth in scale. However, these measures could not fully offset the impact of lower live hog selling prices on the breeding business's performance, resulting in a year-on-year decline in overall profitability.