COFCO JOYCOME (01610) announced its interim results, reporting an owner's attributable loss of 1.553 billion yuan after fair value adjustments of biological assets, a reversal from profit to loss year-on-year.

COFCO JOYCOME (01610) announced its mid-term performance for 2026, reporting an operating revenue of RMB 8.736 billion, a year-on-year decrease of 2.5%. After adjusting for the fair value of biological assets, the loss attributable to shareholders was RMB 1.553 billion, turning from profit to loss compared to the same period last year. The announcement stated that the decline in revenue was mainly due to the decrease in the sales price of live pigs during the reporting period, risks associated with the meat import business, and proactive volume reduction. Before adjusting for the fair value of biological assets, the loss for this period was RMB 1.095 billion, turning from profit to loss year-on-year. During the reporting period, the company has continued to deepen cost management across the entire value chain. Through ongoing advancements in breeding research and development, as well as optimization and enhancement in procurement, production, and health management, the breeding costs have improved significantly. Additionally, the company used live pig futures tools to hedge some operational risks; the R&D of new products, brand investments, and channel expansion have been continuously strengthened, resulting in standout performance of the brand business. The feed business has focused on product innovation and market expansion, achieving year-on-year growth in scale. However, these measures could not fully offset the impact of the declining sales price of live pigs on breeding performance, leading to a year-on-year decline in overall profitability. In the live pig breeding segment, cost management across the entire value chain has been continuously advanced, with breeding costs decreasing month by month. The company is also accelerating the application of AI in breeding and tackling the challenges of breeding new varieties, with the effects of new productivity applications becoming apparent. The feed segment has strengthened market analysis, efficiently connected technology and production, and achieved significant internal and external collaboration results. The company has upgraded its R&D platform, expanded its range of specialty ruminant and aquatic feeds, enriched its product line, and steadily increased sales. The fresh food segment has turned losses into profits, with year-on-year performance increasing by RMB 28.71 million. Continuing to focus on flaxseed pork, the company has enriched its product line and deepened its omnichannel layout, with packaging box sales of branded pork increasing by 35.1% year-on-year in the first half of the year, among which the sales of flaxseed pork increased by 123% year-on-year. The meat products segment and the meat import segment have deepened the integration of processing and trade business models, accurately grasping the trends of imported beef market in the first half of the year, controlling risks, and enhancing profitability, while also deepening downstream channels to build the value chain of imported beef.