HX COLDCHAIN (01641) has released its interim results for the six months ended June 30, 2026, showing a revenue of RMB 111 million, a year-on-year decline of 6.14%. During the period, profit attributable to shareholders dropped sharply by 75.72% to RMB 9.636 million, with earnings per share reaching RMB 0.10.
Looking ahead, the group intends to broaden and refine its service offerings in response to evolving customer demands. A key component of this plan is venturing into frozen food processing services through the construction of a new facility, which would provide value-added capabilities such as cutting, repackaging, thawing, flash freezing, sterilizing, and vacuum-sealing raw frozen goods into semi-finished or finished products. This move is expected to unlock greater value and stimulate market growth.
Operating a frozen food processing business does not demand expertise beyond its current workforce capabilities, and management views this expansion as a logical progression of its frozen storage competencies. It allows the company to deliver supplementary services while strengthening its competitive position. The decision is driven by market opportunities, and represents a natural and strategic extension of both its cold chain warehousing and retail outlet rental services.
Of its more than 700 frozen storage clients, many have already expressed demand for processing services. Since the new facility will sit in close proximity to its current warehouses and outlets, the three sites can operate synergistically, streamlining logistics, reducing coordination efforts, and lowering operating overheads.
To execute this strategy, the company will construct a new processing plant and expand its southern base, increasing total usable storage capacity by approximately 8.7%. Construction is slated for completion by the end of 2028, with all equipment installation finalized by the end of 2029.
The group also plans to pursue strategic acquisitions and partnerships to reinforce industry consolidation and solidify its standing within the cold chain ecosystem. By forming alliances with upstream logistics providers and downstream ready-made food manufacturers, it aims to boost vertical integration and enhance supply chain governance.
Over the next four years, it intends to shortlist two to three acquisition targets, which must have at least a decade of operating history, carry an enterprise value ranging from RMB 100 million to RMB 200 million, and typically involve the acquisition of a majority stake. Management believes the market offers ample potential candidates, with over 100 entities meeting the specified criteria.