Hangzhou Qiandaohu Xunlong Sci-tech Co., Ltd. (Xunlong Sci-tech) released its unaudited interim results for the six months ended 30 June 2026, reporting solid top-line growth and a maiden post-IPO dividend.
Revenue and Profitability • Revenue rose 20.0% year on year (YoY) to RMB 361.90 million, buoyed by a 23.0% jump in caviar sales volume to 140,367 kilograms. • Reported profit edged up 1.6% YoY to RMB 178.70 million, while adjusted net profit (excluding share-based compensation and listing expenses) increased 15.7% to RMB 209.20 million. • Basic earnings per share were RMB 1.78 versus RMB 1.91 a year earlier.
Segment Performance • Caviar sales contributed RMB 330.60 million (+18.7% YoY); average selling price slipped 3.5% to RMB 2,355 per kilogram due to currency effects. • Sturgeon meat and related products generated RMB 28.60 million, up 40.7% YoY. • Other products remained stable at RMB 2.70 million.
Cost Structure and Margins • Gross profit before fair-value adjustments on biological assets rose 13.2% to RMB 243.30 million; margin narrowed to 67.2% (H1 2025: 71.3%) on higher aquaculture, transport and share-based compensation costs. • After IAS 41 fair-value adjustments, gross profit stood at RMB 4.80 million, reflecting accounting treatment of biological assets. • Selling and marketing expenses increased 29.6% to RMB 31.90 million; general and administrative expenses surged 123.9% to RMB 44.00 million, driven by the September 2025 restricted share plan and listing-related costs.
Balance-Sheet Highlights • Total assets reached RMB 3.90 billion, up 28.5% from end-2025, while net current assets climbed 46.0% to RMB 3.20 billion. • Cash and cash equivalents rose to RMB 1.40 billion, aided by RMB 1.03 billion proceeds from the June 2026 Hong Kong IPO. • Sturgeon inventory expanded 18.3% YoY to roughly 16,000 tons, underpinning future production capacity.
Key Ratios • Net profit margin declined to 49.4% (H1 2025: 58.3%). • Return on equity eased to 13.5% from 18.5%.
Dividend The Board proposes an interim dividend of RMB 0.75 per share, subject to shareholder approval at the upcoming general meeting.
Operational Developments • Three new retail outlets opened at Xi’an SKP, Hangzhou Westlake 66 (first flagship) and Beijing SKP, bringing the network to six stores. • Export volume of 126 tons accounted for 65.5% of China’s total caviar exports; price increases for Russian sturgeon caviar were implemented in select European markets from April 2026. • Partnerships expanded to new airline customers, including Hainan Airlines and Emirates trial routes, with Qatar Airways tender participation underway.
Capital Expenditure and Outlook • First-half capex totalled RMB 55.65 million, focused on production facility upgrades and aquaculture expansion. • Management plans continued investment in breeding technology, automation and global channel penetration to support long-term growth in the premium caviar market.