Link: https://links.sgx.com/1.0.0/corporate-announcements/XOL5SGC8JGLMVYDX/50f2fd6f24c160f9d0aae8fa00025cb05b8de32c697304850b31f492a769e8d4

Summary:

• Revenue: RMB 861.9 million (up 12.1% from RMB 768.7m in 1HFY2024)

  • Processed food: RMB 380.8m (+7.4%)

  • Chilled/frozen chicken: RMB 378.2m (+18.2%)

  • Chilled/frozen rabbit: RMB 96.4m (+21.1%)

  • Other products: RMB 6.5m (-55%)

• Geographical breakdown: PRC RMB 635.0m (73.7%, +11.1%), Export RMB 227.0m (26.3%, +15.0%)

• Gross profit: RMB 43.2 million (up 104.7%), gross margin increased to 5.0% (from 2.7%)

• Loss attributable to owners: RMB 1.54 million (improved from a loss of RMB 20.3 million); loss per share: 0.35 RMB cents

• Administrative expenses: Stable; higher other income, higher operating costs reflect segment growth

• Net assets: RMB 535.2m (flat vs. RMB 536.4m at 31 Dec 2024)

• Cash: RMB 144.9 million (down from RMB 234.2m)

• Borrowings: RMB 235.8m (all short-term, repayable within 12 months); gearing ratio improved to 67.8%

• No interim dividend declared

• Business developments: Lower gross margin in chicken due to competition. Positive margin in rabbit meat from better pricing. Larger inventory (+RMB 60m) and receivables from strong Q2 sales.

• Going concern statements: Directors confident of continued operations through negotiations to roll over short-term loans, alternative financing, and operational efficiency efforts.

• Outlook: Company will focus on cost control, margin discipline, more value-added/new products, and new market exploration. Sector headwinds and global trade risks persist.

In summary, China Kangda posted higher revenues, improved profits (substantial YoY loss reduction), and saw better gross margins. Growth was broad-based but company remains cautious due to debt and market risks. No dividend is declared for 1H FY2025.