Zixin Group Holdings (SGX:42W
) has reported earnings of RMB61.42 million ($11.67 million), up 43.8% y-o-y for FY2026 ended March 31. Revenue grew by 43% y-o-y to RMB607.47 million in the same period.
The higher revenue and earnings were attributed to the growth across all its business segments, mainly, cultivation & supply, product innovation & food production and recovery & recycling.
Zixin Group’s gross profit increased 29.7% y-o-y to RMB187.3 million in FY2026, primarily due to an increase in overall sales. However, gross profit margin declined from 34.0% in FY2025 to 30.8% in FY2026.
The decline in gross profit margin was due to lower margin from the sale of fresh sweet potatoes, which was offset by a slight increase in the gross profit margin from sweet potato processed products.
On the cost front, Zixin Group reported higher administrative expenses in FY2026 mainly due to increase in research and development expenses in terms of cultivating seedlings of new sweet potato varieties and innovating production techniques and processed sweet potato products.
As at March 31, Zixin Group has a positive working capital of RMB343.55 million, an increase from RMB237.6 million a year ago.
Net asset value per share declined 3.1% y-o-y to RMB0.351 due to issuance of new shares, resulting from the exercise of share options during the year.
“While new operations beyond Liancheng County – particularly the replication of the integrated sweet potato industrial value chain in Lingao County, Hainan, and Quanzhou City – will require time to develop, we will continue to prioritise our upstream cultivation and supply. As we move forward with our expansion plans in China and internationally, we will exercise caution, considering the rising operational costs associated with the ongoing conflict in the Middle East,” says Liang Chengwang, executive chairman and CEO of Zixin Group.
Shares of Zixin Group closed 0.1 cent higher, or 3.12% up at 3.3 cents on May 29.
