According to the Zhitong Finance App, Red Star Cold Chain (01641) announced interim results for the six months ended June 30, 2026. The group achieved revenue of 111 million yuan, a year-on-year decrease of 6.14%; profit attributable to company owners was 9.636 million yuan, a year-on-year decrease of 75.72%; and profit per share was 0.1 yuan.
Looking ahead, the Group will continue to expand and optimize our service portfolio to meet the changing needs of our customers. We plan to expand to frozen food processing services by building a new processing plant to provide value-added services, such as cutting, packing, defrosting, quick freezing, sterilization, and vacuum packaging of unprocessed frozen food as semi-finished or finished products, thereby driving greater value and market growth. Running a frozen food processing business requires no expertise other than experienced employees. We believe this expansion is a natural extension of our frozen food storage expertise, providing additional value-added services and enhancing our competitiveness.
We are seeking this expansion because it is a natural and strategic extension of our frozen food storage services and frozen food store rental services, driven by market opportunities. Among our more than 700 frozen food storage customers, many have indicated their need for processing services. Since the new facility is close to our existing warehouses and stores, the three facilities will be able to work together to simplify logistics processes, reduce coordination requirements, and reduce operating costs. To implement this strategy, we will build a new processing plant and expand the southern base to increase the total usable storage capacity by about 8.7%. It is expected that the construction project will be completed by the end of 2028, and the installation of all equipment will be completed by the end of 2029.
We plan to seek strategic acquisitions and partnerships to strengthen industry integration and strengthen our position in the cold chain ecosystem. Through alliances with upstream logistics service providers and downstream prepared food manufacturers, we aim to enhance our vertical integration capabilities and improve supply chain control. Over the next four years, we plan to select two to three acquisition targets. These targets must have at least 10 years of operating history, a corporate value of about RMB 100 million to RMB 200 million, and generally acquire majority shares in the target company. We believe there are plenty of potential targets in the market, and there are more than 100 candidates that meet our criteria.