Henan Huaying Agricultural Development Co Ltd

Huaying Agriculture disclosed its 2026 semi-annual report on the evening of August 25. The company achieved operating revenue of 2.372 billion yuan in the first half, up 14.52% year on year, but net profit attributable to shareholders was a loss of 29.2825 million yuan, a 41.93% wider loss. Among this, the down business achieved revenue of 1.707 billion yuan, up 25.97% year on year, accounting for 71.97% of total revenue, but gross margin was only 3.17%, down 3.03 percentage points year on year. The company said this was affected by rising costs and lagging locked-in selling prices. Meanwhile, traditional frozen product revenue fell 15.26% to 338 million yuan, and duckling revenue dropped 20.97% year on year. Inventory surged to 1.284 billion yuan, with its share of total assets rising from 16.30% at the beginning of the period to 30.61%, mainly due to increased down stocking, causing operating cash flow to swing from a net inflow of 186 million yuan to a net outflow of 296 million yuan. In addition, the company received a warning letter over issues including related-party fund occupation. Controlling shareholder Dingxin Xinghua is undergoing dissolution and liquidation, and control is planned to be transferred to Xinyang Industrial Investment Group, with the actual controller to become the Xinyang Municipal Finance Bureau.

Huaying Agriculture disclosed its earnings forecast, expecting a net loss attributable to the parent company of 28 million to 35 million yuan in the first half of 2026, compared with a loss of 20.6315 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 34 million to 41 million yuan, compared with a loss of 25.9809 million yuan in the same period last year. The company stated that overall operating revenue maintained growth, but cyclical fluctuations in the duck meat industry led to low selling prices for some duck products. At the same time, the down business faced cost pressure due to a phased rise in upstream raw feather prices, squeezing the profitability of the main business. Huaying Agriculture focuses on the duck industry, with operations covering two major industrial chains: food and down.