Juewei Food Co Ltd

ST Juewei released its 2026 interim report. Net profit attributable to the parent company was 135 million yuan, down 23.16% from the same period last year. Total operating revenue was 2.515 billion yuan, a decrease of 305 million yuan from the same period last year, down 10.82% year on year. Net cash flow from operating activities was negative 182 million yuan, a decrease of 666 million yuan from the same period last year, down 137.59% year on year. The company's latest asset-liability ratio was 23.66%, down 3.61 percentage points from the previous quarter. The latest gross margin was 26.36%, down 0.63 percentage points from the previous quarter. The latest return on equity was 2.22%, down 0.58 percentage points from the same period last year. Diluted earnings per share were 0.22 yuan, down 24.14% from the same period last year.

ST Juewei announced on August 21 that it has raised its overall approved quota for daily related-party transactions in 2026 from 634 million yuan to 659 million yuan, with the entire additional 25 million yuan centered on Sichuan Liaoji Investment Co., Ltd. and its subsidiaries. Among this, the projected quota for selling goods to related parties has been increased from 20 million yuan to 40 million yuan, while procurement of services from related parties has added 5 million yuan. Sichuan Liaoji Investment Co., Ltd. is an associated enterprise in which Shenzhen Wangju, a wholly owned subsidiary of ST Juewei, holds an 11.74 percent stake. As of the end of June 2026, its net assets were negative 86.9483 million yuan, its asset-liability ratio was as high as 166.57 percent, and its net profit for the first half of the year was negative 13.1698 million yuan. ST Juewei's operating revenue in the first half of 2026 was 2.515 billion yuan, down 10.82 percent year on year, while net profit attributable to the parent company was 135 million yuan, down 23.16 percent, and net cash flow from operating activities was negative 182 million yuan. Liaoji Food operates under the Liaoji Bangbangji brand and has more than 900 stores nationwide, but it faces competition from brands such as Juewei Duck Neck, Ziyan Bawei Ji, Zhou Hei Ya, and Tianfu Bangbangji.

ST Juewei's planned transfer of its roughly 24.17% stake in Saifeiya has hit a snag, as buyer Yutang Group has failed to pay the first installment on time. On the evening of August 18, ST Juewei announced that it intends to transfer its 24.1661% stake in Saifeiya to Yutang Group for 84.5814 million yuan, but as of now it has not received the agreed first payment of 2.5374 million yuan and has sent a payment reminder to Yutang Group. On July 15, 2026, the parties signed a share purchase agreement, under which Yutang Group was required to pay the first installment of 2.5374 million yuan, or 3% of the transfer price, within 30 days of the agreement taking effect. Yutang Group said its bank account has been temporarily suspended from making external payments due to audit requirements, and that it will fulfill its payment obligations and pay overdue interest after the audit is completed. ST Juewei cautioned that there is still uncertainty over whether the equity transfer can be successfully completed. Public information shows that ST Juewei acquired a stake in Saifeiya in 2013 for 168 million yuan, holding 28%, and its stake later fell to about 24.17% after external shareholders were introduced. Saifeiya has been loss-making for a long time. From 2023 to 2025, ST Juewei recognized total investment losses of 30.28 million yuan under the equity method, and this 84.58 million yuan exit represents a nearly 50% reduction from the initial investment cost.