Hongxing Coldchain (HX COLDCHAIN) expects net profit for the six months ended 30 June 2026 to fall to between RMB9.00 million and RMB10.00 million, a drop of roughly 74%–77% from RMB39.70 million a year earlier.

Management attributes the contraction to three factors:

1. Macroeconomic pressure and industry destocking: Soft end-market consumption and a continued price inversion between fresh and frozen pork narrowed arbitrage for traders, reducing warehouse utilisation and revenue.

2. Strategic support measures: Preferential shop-rent policies and logistics subsidies aimed at sustaining merchant operations compressed gross profit margins.

3. Exchange losses: Conversion of Hong Kong-dollar listing proceeds into Renminbi generated adverse currency effects, further weighing on net profit.

The figures are based on unaudited management accounts and may be adjusted in the forthcoming interim results. The board advises shareholders and potential investors to exercise caution when dealing in the company’s shares.