HX COLDCHAIN (Hongxing Coldchain (Hunan) Co., Ltd.) reported a sharp contraction in profitability for the six months ended 30 June 2026, citing destocking by downstream customers and increased cost subsidies.

Revenue fell 6.10% year on year to RMB110.80 million, driven chiefly by a 7.82% drop in frozen-food storage revenue to RMB74.84 million and a 34.48% decline in leasing income to RMB15.58 million. Loading-service revenue dipped 3.47% to RMB10.86 million, while a new frozen-food trading business contributed RMB8.33 million.

Gross profit halved to RMB32.57 million, compressing the gross margin to 29.4% from 53.3% a year earlier. The margin erosion was attributed to higher logistics and transportation subsidies offered to customers amid softer end-market demand.

Operating expenses rose: • Selling and distribution costs climbed to RMB1.44 million (6M 2025: RMB0.18 million). • Administrative expenses increased 22.2% to RMB11.20 million, reflecting post-listing professional fees. • R&D spending more than doubled to RMB1.34 million. • Other expenses surged to RMB8.61 million, mainly due to FX losses on IPO proceeds converted from HKD to RMB.

Finance costs eased 5.9% to RMB1.99 million as average loan rates edged lower. After a 2.58 million tax charge, net profit collapsed 75.7% to RMB9.64 million; adjusted net profit (excluding prior-year listing expenses) fell 76.0% to the same level. Earnings per share slipped to RMB0.10 from RMB0.53.

Balance-sheet metrics improved on IPO proceeds: cash and cash equivalents jumped 277.6% to RMB354.29 million, while the gearing ratio declined to 33.3% from 42.2%. Bank borrowings, secured against fixed assets, stood at RMB200.11 million, down 2.1% from year-end. Net current assets expanded to RMB280.36 million (31 Dec 2025: RMB53.50 million).

Inventories rose to RMB10.45 million (31 Dec 2025: RMB0.37 million) following the launch of frozen-food sales. Trade and lease receivables increased 76.7% to RMB27.00 million, partly due to extended credit terms and new trading activity; management reports most balances have since been collected.

Capital expenditure totalled RMB0.80 million versus RMB16.76 million a year earlier. Outstanding capital commitments were RMB1.12 million.

No interim dividend was declared.

Strategy and outlook include: • Building a new processing plant and expanding storage capacity by 8.7% by end-2028. • Investing in AI-driven automation, including AGV forklifts, industrial 5G networks and data analytics. • Targeting two to three acquisitions (enterprise value RMB100-200 million each) over four years to deepen vertical integration. • Extending logistics partnerships to widen regional coverage.

As of 30 June 2026 the company had deployed HK$24.90 million of the HK$254.50 million IPO proceeds, mainly for working capital. Remaining funds will finance capacity expansion, technology upgrades and acquisitions through 2029.

Post-period, HX COLDCHAIN continued to place principal-protected wealth-management products with Bank of Communications, with the latest RMB20 million subscription on 18 August 2026.

The board recorded no material post-balance-sheet events beyond these investments.