QINQIN FOODS (01583) has issued a profit warning, expecting its profit attributable to shareholders for the first half of the year to be between approximately RMB 4 million and RMB 6 million, a decline of about 73% to 82% compared to the same period last year.

The company announced in a filing that the group expects revenue for the six months ending June 30, 2026, to be around RMB 485 million, representing a decrease of approximately RMB 45 million, or 8%, from the revenue of roughly RMB 530 million recorded for the six months ending June 30, 2025.

The group also anticipates that profit attributable to shareholders for the reporting period will be in the range of RMB 4 million to RMB 6 million, a sharp drop from the profit of about RMB 22 million reported in the first half of the previous year. This translates to a reduction of between RMB 16 million and RMB 18 million, or approximately 73% to 82%.

The expected decline in revenue and profit is primarily attributed to a slowdown in consumer spending within the traditional physical retail sector, which led to reduced sales through conventional channels. This was partially offset by increased sales in the leisure food chain channel and growth in the original equipment manufacturer (OEM) business.

Furthermore, lower sales volumes of jelly products and rice wine products resulted in reduced utilization of the company's production facilities and diminished economies of scale. This factor alone contributed to a decrease in gross profit of approximately RMB 22 million and a decline in the gross profit margin by about 2 percentage points.