Juewei Foods Shares Fall 7% after a 31% Drop in Net Profit in 1H 2020

Consumer Staples Author: Yue Liu Editor: Luke Sheehan Aug 27, 2020 10:40 AM (GMT+8)

Juewei Food's semi-annual report performance declined for the first time in the past five years.

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The semi-annual report recently disclosed by Juewei Foods shows that, in 1H 2020, the company achieved a revenue of CNY 2.41 billion, down 3.08% year-on-year. Net profit attributable to shareholders of listed companies was CNY 274 million, down 30.78% year-on-year. Compared with the first quarter, Juewei Food's performance in the second quarter has shown signs of recovery, and the decline has narrowed.

Fresh products accounted for 96.12% of revenue, reaching CNY 2.27 billion. Among them, poultry products realized a revenue of CNY 1.79 billion, accounting for 75.68%, and vegetables saw revenue of CNY 242 million, accounting for 10.27% of revenue.

In terms of regions, Central China is the focus of Juewei Foods sales. It achieved revenue of CNY 663 million, accounting for 28.11% of total revenue. Eastern China followed by revenue of CNY 545 million, accounting for 23.08%. Also, South China recorded revenue of CNY 414 million, accounting for 17.52%.

Juewei Foods has commented on the collective crisis – in the first half of 2020 the global economy was hit hard by the pandemic, with daily commerce suffering a particularly harsh blow. As a result, the company temporarily closed some stores. However, Juewei Food's sales expenses reached CNY 235 million, an increase of 15.21%, thanks to support from franchisees. In the first half of 2020, Juewei Foods has opened 12,058 stores nationwide.