--- title: "In the second quarter, a maximum pre-loss of 93.94 million yuan is expected, and KE MING FOOD may face its worst half-year since listing" type: "News" locale: "en" url: "https://longbridge.com/en/news/292618568.md" description: "KE MING FOOD released its performance forecast for the first half of 2026, expecting a net loss attributable to shareholders of between 35 million and 60 million yuan in the first half of the year, a shift from profit to loss year-on-year. The loss for the second quarter alone is estimated to be around 68.94 million to 93.94 million yuan, which may mark the worst half-year performance since its listing. The company stated that the decline in performance is mainly due to a significant drop in the sales price of live pigs and fluctuations in raw material costs, leading to reduced profits in both the breeding and food sectors" datetime: "2026-07-14T11:29:10.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292618568.md) - [en](https://longbridge.com/en/news/292618568.md) - [zh-HK](https://longbridge.com/zh-HK/news/292618568.md) generator: "portal-rs" --- # In the second quarter, a maximum pre-loss of 93.94 million yuan is expected, and KE MING FOOD may face its worst half-year since listing **Image Source: Visual China** **Blue Whale News, July 14** (Reporter Dai Ziting) On the evening of July 14, Chen Ke Ming Food Co., Ltd. (hereinafter referred to as "Ke Ming Food") released its performance forecast for the first half of 2026, expecting a net loss attributable to shareholders of the listed company of 35 million to 60 million yuan in the first half of this year, compared to a profit of 100 million yuan in the same period last year, a year-on-year decline of 134.89% to 159.81%; the net profit after deducting non-recurring gains and losses is expected to be a loss of 30 million to 55 million yuan, compared to a profit of 93.0387 million yuan in the same period last year. The real pressure is concentrated in the second quarter. Ke Ming Food's first quarter report shows that in the first quarter of this year, the company achieved operating income of 1.178 billion yuan, a year-on-year increase of 5.10%; the net profit attributable to the parent company was 33.9393 million yuan, a year-on-year decrease of 60.44%. Based on the semi-annual forecast data, Ke Ming Food's net profit attributable to the parent company in the second quarter is expected to be a loss of about 68.94 million to 93.94 million yuan, with a single-quarter loss scale approaching 100 million yuan at most. In comparison, in the second quarter of 2025, the net profit attributable to the parent company was 14.5314 million yuan; the net profit attributable to the parent company in the second quarter of this year may decrease by about 83.47 million to 108 million yuan year-on-year. This may also become the worst first half performance for Ke Ming Food since its listing. Blue Whale News reporters reviewed the company's annual financial reports and found that Ke Ming Food has recorded its first half net profit attributable to the parent company loss since its listing. Since the company was listed on the Shenzhen Stock Exchange in 2012, its half-year net profit attributable to the parent company had always been positive, even in the first half of 2023, which faced significant performance pressure, Ke Ming Food still achieved a net profit attributable to the parent company of 11.1114 million yuan; in the first halves of 2024 and 2025, it earned 103 million yuan and 100 million yuan respectively. Regarding the shift from profit to loss, Ke Ming Food attributed the reasons to its two major business segments: breeding and food. The company stated that during the reporting period, the breeding segment continuously reduced production costs through measures such as strengthening the health management of pig fattening, optimizing feed formulas, and breeding management, but the profits from pig breeding business decreased year-on-year due to a significant decline in pig sales prices; the food segment was affected by fluctuations in raw material costs, leading to a decrease in product gross profit margins and consequently lower profits. The pressure brought by falling pig prices is more intuitively reflected in the sales data. In the first half of 2026, Ke Ming Food's holding subsidiary Xingjiang Muge sold a total of 376,000 pigs, a year-on-year increase of 26.48%, but the total sales revenue was only 287 million yuan, a year-on-year decrease of 12.90% Pigs are sold more, but the income has decreased. In June of this year, the sales price of commercial pigs from Xingjiang Mugge was 8.88 yuan/kg, a decrease of about 34.46% compared to 13.55 yuan/kg in the same period last year; the sales volume for the month was 50,100 pigs, a year-on-year decrease of 14.92%, with sales revenue of 30.3274 million yuan, a year-on-year decrease of 47.95%. The company clearly stated that the year-on-year decline in sales revenue from pigs in June was mainly due to the drop in pig prices. The pig farming business has already put significant pressure on KE MING FOOD. In 2025, Xingjiang Mugge achieved operating revenue of 810 million yuan, with a net loss of 81.8783 million yuan. Entering the first quarter of 2026, KE MING FOOD's asset impairment losses reached 14.1336 million yuan, a year-on-year increase of 694.94%. The company explained that this was mainly due to an increase in the inventory write-down provision made by Xingjiang Mugge. However, the problem does not only lie with the pigs. As the traditional core business of KE MING FOOD, the noodle business has also not emerged from the pressure zone. In 2025, KE MING FOOD achieved operating revenue of 4.328 billion yuan, a year-on-year decrease of 5.22%, marking the third consecutive year of decline; the net profit attributable to the parent company was 92.2784 million yuan, a year-on-year decrease of 36.77%. Among them, the revenue from the noodle business was 2.363 billion yuan, a year-on-year decrease of 7.70%, with a sales volume of 422,900 tons, a year-on-year decrease of 8.37%; the revenue from convenience foods was 315 million yuan, a year-on-year decrease of 3.77%. While sales volume has declined, the company's expenses for market competition have increased. In 2025, KE MING FOOD's sales expenses reached 373 million yuan, a year-on-year increase of 20.74%, with increases in market service fees, advertising expenses, and sales personnel salaries. In the first quarter of this year, the company's sales expenses further increased to 90.8828 million yuan, a year-on-year increase of 43.06%, while the net profit attributable to the parent company decreased by more than 60% during the same period. Amidst the pressure on performance, the "handmade" trademark controversy that occurred in the second quarter of this year has also cast a shadow over KE MING FOOD's brand management. In May of this year, CCTV reported that a noodle product from Chen Keming, although produced by machine, prominently labeled "handmade" on the packaging, along with promotional phrases like "just like the handmade noodles made by mom in childhood." Two "Chen Keming Handmade" trademarks under the company were declared invalid by the National Intellectual Property Administration on October 24, 2025. On May 25, KE MING FOOD issued an apology statement, announcing a complete halt to the production and sale of products with "handmade" related descriptions and rectifying relevant packaging and promotional materials. Recently, Blue Whale reporters searched on e-commerce platforms like Tmall and JD.com and found that the "handmade" noodles with the previous packaging are no longer available in Chen Keming's official store. Previously, company representatives had stated that the suspension of production and sales would have a short-term impact on sales, but there were no quality issues with the products themselves, and production could resume after completing the rectification of packaging and promotion. While rectifying old products, KE MING FOOD is also continuing to seek new growth. In 2025, the company opened its first "Chen Keming Noodle Restaurant" directly operated store, attempting to further extend its business into the catering terminal In March 2026, the company announced its plan to acquire 100% equity of Qingdao Yashijia Food Co., Ltd. for cash consideration of 145 million yuan, expanding its product range to include frozen udon noodles, ramen, and other categories. The relevant industrial and commercial change registration was completed in May of this year. In the secondary market, on July 14, KE MING FOOD closed at 7.33 yuan per share, up 0.96% ### Related Stocks - [002661.CN](https://longbridge.com/en/quote/002661.CN.md) ## Related News & Research - [European Seafood Stocks Worth Watching After Iceland’s EU Snub](https://longbridge.com/en/news/297431984.md) - [Trump Wants Beef Prices to Come Down, But GOP Congressman Warns Washington's Import Push Could Pull the ‘Rug Out’ From Ranchers](https://longbridge.com/en/news/297776718.md) - [US Cocoa Futures (COCOA-F) Volatility Intensified on Sep 2: What to Watch](https://longbridge.com/en/news/297778138.md) - [11:00 ETCovationBio's Xatryx® Mass Production On Spec, to Debut First Non‑Food Bio‑Based Athletic Insole at NW Materials Show in the U.S.](https://longbridge.com/en/news/297804526.md) - [Sensz joins CERTANIA Group in Dutch food safety deal](https://longbridge.com/en/news/297635930.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**