DaChan Food (Asia) Limited reported a modest return to profitability for the six months ended 30 June 2026, underpinned by higher gross margins in its core segments and tighter cost control.

Revenue and Profitability • Group turnover edged down 0.5% year on year to RMB 2.90 billion. • Gross profit rose 8.9% to RMB 0.33 billion, lifting the gross margin by 1.0 percentage point to 11.5%. • Profit attributable to shareholders swung from a RMB 35.07 million loss to a marginal profit of RMB 0.09 million, translating into basic earnings per share of RMB 0.0001 (H1 2025: loss per share RMB 0.035).

Segment Performance 1. Processed Food – Revenue increased 5.1% to RMB 1.37 billion, driven by a larger contribution from mainland China sales (+3.0%) and a 22.4% jump in exports. – Segment gross profit improved 3.3% to RMB 0.24 billion, representing 70.8% of group gross profit. Margin held broadly stable at 17.2%.

2. Meat – Revenue inched up 1.1% to RMB 0.79 billion. – Gross profit almost doubled to RMB 44.71 million, lifting the margin to 5.7% (H1 2025: 2.9%) on the back of a shift to demand-driven production, tighter cost controls and product mix optimisation.

3. Livestock Feeds – Revenue declined 10.8% to RMB 0.74 billion amid continued consolidation in China’s pig-breeding sector. – Gross profit fell 4.7% to RMB 52.57 million, though margin improved to 7.1% (H1 2025: 6.7%) owing to cost initiatives and product mix upgrades.

Cash Flow and Balance Sheet • Cash and cash equivalents stood at RMB 564.45 million at end-June, up RMB 32.09 million from December 2025. • Interest-bearing borrowings fell 14.3% to RMB 376.41 million, leaving the company with a net cash position of RMB 188.04 million and an interest-bearing borrowings-to-equity ratio of 15.4%. • The current ratio remained healthy at 1.48x (end-2025: 1.68x). • Capital expenditure totalled RMB 30.62 million, funded primarily by long-term bank facilities; committed but unutilised capex amounted to RMB 94.01 million.

Operational Highlights • Continued investment in R&D, supply-chain digitalisation and capacity expansion supported the processed-food segment’s leading contribution. • The meat unit benefitted from a revamped production-marketing model, automated processing and a focus on higher-margin channels such as membership stores and chain supermarkets. • The feeds business intensified cooperation with medium-to-large farms and accelerated development of niche categories (e.g., ruminant feeds) to offset industry contraction.

Capital Management and Dividends No interim dividend was declared. Pledged assets at period-end totalled RMB 17.20 million, securing unutilised bank facilities of RMB 10.00 million.

Outlook Management will prioritise expansion of the processed-food division, diversification of export markets beyond Japan, continued optimisation of the meat supply chain, and product/channel broadening in feeds to reinforce resilience against market volatility.