Qinqin Foodstuffs Group Issues Profit Warning for FY2025: Investors Alerted to Significant Turnaround

Key Highlights

• Profit Warning Announced: Qinqin Foodstuffs Group (Cayman) Company Limited has issued a profit warning for the financial year ended 31 December 2025. The company expects to record a net loss attributable to equity shareholders in the range of RMB1 million to RMB3 million, a drastic reversal from a net profit of approximately RMB21 million in FY2024.
• Revenue Decline: The anticipated loss is primarily attributed to a decline in revenue, mainly due to reduced sales through traditional sales channels. While there was some offset from increased sales to snack food chains, OEM manufacturing, and export business, these were insufficient to counteract the overall decrease.
• Reduced Economies of Scale: The decrease in sales volume led to reduced economies of scale, which contributed to a decrease in gross profit of approximately RMB32 million compared to FY2024.
• One-Off Gains and Losses:
  • The group expects to record a one-off gain on disposal of property, plant, and equipment of RMB5 million in FY2025 (compared to a loss of RMB6 million in FY2024). This gain was mainly from the sale of land use rights and associated assets at the former Xiantao City production base in Hubei Province, PRC.
  • Conversely, the group will record a one-off impairment loss on construction in progress of RMB7 million, resulting from a decision to discontinue a construction project in Xiaogan City, Hubei Province, PRC.
• Financials Subject to Change: The figures are based on unaudited, draft consolidated management accounts and are subject to revision. The final audited results, expected to be released in mid-March 2026, may differ from these preliminary numbers.

Details for Shareholders and Potential Investors

• Potential Share Price Impact: The significant reversal from profit to loss is likely to be price-sensitive. Investors should closely monitor the company’s official results release, as any further deterioration or revision of these numbers could lead to increased volatility in the company’s share price.
• Strategic Shifts and Challenges: The company’s struggle to maintain revenue through traditional channels, partially mitigated by growth in other sectors, signals ongoing challenges in its core business. The one-off gains and losses highlight asset restructuring activities and strategic project reviews.
• Board and Management: The board comprises eight directors, including three executive directors, two non-executive directors, and three independent non-executive directors, reflecting a mix of leadership and oversight for the group.
• Investor Caution: The company specifically advises shareholders and potential investors to exercise caution in trading the shares, given the uncertainty and potential for further change in the financial results.

Timeline and Next Steps

• The audited results for the year ended 31 December 2025 are expected to be published in mid-March 2026.
• Investors should refer to the official results announcement for the most accurate and finalized information.

Conclusion

Qinqin Foodstuffs Group faces a challenging year ahead with an expected swing from profit to loss. This announcement is highly material and price-sensitive, and investors are strongly advised to stay alert for the official audited results and any further corporate disclosures.

Disclaimer: The information presented above is a summary of the company’s profit warning announcement and is based on management’s preliminary assessment. All figures are unaudited and subject to change following completion of the audit process. This article does not constitute investment advice. Investors should exercise caution and refer to the company’s official disclosures and consult with their financial advisors before making investment decisions.

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