ZhengWei Group (the 'Company') announced its interim performance for the six months ended June 30, 2024, showing an increase in revenue of 55.5% compared to the same period last year, reaching RMB 298.1 million. However, the company recorded a net loss of approximately RMB 40.6 million for the same period, compared to a net profit of approximately RMB 29.7 million in 2023. Gross profit decreased significantly by 98.3%, to approximately RMB 1.1 million. The decline in the performance of the Company and its subsidiaries is mainly due to an increase in direct material costs, resulting in a significant increase in sales costs. The Company's main business includes procurement, processing, and trading of dried delicacies, snacks, dried aquatic products, grains, seasonings, and other products in China. The controlling shareholders...Show More

ZhengWei Group (the 'Company') announced its interim performance for the six months ended June 30, 2024, showing an increase in revenue of 55.5% compared to the same period last year, reaching RMB 298.1 million. However, the company recorded a net loss of approximately RMB 40.6 million for the same period, compared to a net profit of approximately RMB 29.7 million in 2023. Gross profit decreased significantly by 98.3%, to approximately RMB 1.1 million. The decline in the performance of the Company and its subsidiaries is mainly due to an increase in direct material costs, resulting in a significant increase in sales costs. The Company's main business includes procurement, processing, and trading of dried delicacies, snacks, dried aquatic products, grains, seasonings, and other products in China. The controlling shareholders are Mr. Yang Shengyao and his spouse Ms. Lin Qiuyun. During the reporting period, the Company did not pay any interim dividends and completed a net fundraising of approximately HKD 20.8 million through a new share placement on May 14, 2024. As of June 30, 2024, the Company's cash and cash equivalents were approximately RMB 189.1 million.