Qinqin Foodstuffs Group (Cayman) Company Limited released its 2026 interim results, reporting softer sales and sharply lower earnings amid heightened competition and weaker demand in traditional retail channels.
Revenue and Earnings • Consolidated revenue declined 8.4% year-on-year to RMB485.43 million, pulled down by slower sales in supermarkets and unchained grocers. • Gross profit contracted 14.2% to RMB132.26 million; gross margin slipped to 27.2% from 29.1% a year earlier, reflecting reduced capacity utilisation and diminished economies of scale. • Profit attributable to shareholders fell 77.1% to RMB4.94 million. Adjusted EBITDA retreated 29.6% to RMB49.44 million.
Segment Performance • Jelly Products: Sales slid 10.4% to RMB283.52 million, representing 58.4% of group turnover; margin compressed by 3.2 ppt to 25.9% as volume fell and scale benefits weakened. • Crackers & Chips: Revenue edged up 2.8% to RMB153.25 million; margin was broadly stable at 29.2% on new product launches and OEM gains. • Seasoning Products: Turnover rose 4.1% to RMB35.58 million, with margin expanding to 38.8% (-up 2.3 ppt) on portfolio focus and pricing actions. • Confectionery & Other: Revenue dropped 56.6% to RMB13.08 million after rice-wine delistings; margin narrowed to 0.8% from 20.6%.
Cost Structure Distribution and selling expenses eased 5.1% to RMB61.01 million, tracking lower sales-related bonuses and trimmed e-commerce spend, but still equalled 12.6% of revenue. Administrative expenses were flat at RMB67.14 million, or 13.8% of turnover, as higher amortisation and compliance levies offset staff cost savings.
Cash Flow and Balance Sheet • Net cash from operations reached RMB20.43 million versus an outflow of RMB107.00 million in 1H25. • Net cash position improved 3.7% to RMB394.85 million; current ratio strengthened to 1.5. • Capital expenditure totalled RMB9.14 million, primarily for equipment upgrades. • The group disposed of its Xiaogan City construction project for RMB23.46 million in February, recording no gain or loss. • Pledged assets worth RMB256.60 million back RMB95.80 million in secured loans; average borrowing cost was 2.50%.
Shareholder Returns A final dividend of RMB0.03 per share for FY2025 (RMB22.61 million) was paid in June 2026. The board declared no interim dividend. During the period, 20,000 shares were repurchased for HKD0.03 million and held as treasury stock.
Management Outlook Management attributes the downturn to intensified market competition, channel shifts toward value-oriented snack chains and lower volumes in core jelly and rice-wine lines. Strategic priorities include product innovation, broader channel reach—especially through snack chains and e-commerce—continued automation investments, and selective consumer-goods investments to restore growth momentum while maintaining a solid net-cash balance.