China Foods Holdings Ltd. reported its financial results for the second quarter of 2026, revealing a significant decline in revenue and an ongoing net loss. For the three months ended June 30, 2026, the company generated revenue of $2, a stark decrease from $142.2 million in the same period of 2025. For the first half of 2026, revenue totaled $255, down from $142.3 million in the prior year. The company attributed this decline to reduced demand for healthcare products, which has impacted its overall financial performance.
The company's cost of revenue for the second quarter of 2026 was negligible at $0, compared to $126.7 million in the previous year, resulting in a gross profit margin of 100% for the quarter. However, the overall gross profit for the six months ended June 30, 2026, was $231, down from $15.6 million in 2025. Operating expenses also decreased significantly, totaling $63.8 million for the second quarter of 2026, compared to $112.9 million in the same quarter of 2025. This reduction was primarily due to lower selling and administrative expenses.
China Foods Holdings reported a net loss of $63.8 million for the second quarter of 2026, an improvement from a net loss of $97.4 million in the same period of 2025. For the first half of 2026, the net loss was $125.3 million, compared to $200.9 million in the prior year. The decrease in net loss was attributed to better control over administrative expenses, despite the significant drop in revenue.
On the operational front, the company maintained a cash balance of $15.9 million as of June 30, 2026, an increase from $9.9 million at the end of 2025. However, current liabilities exceeded current assets by approximately $1.4 billion, and the company reported an accumulated deficit of $2.7 billion. The company has entered into agreements with its controlling shareholder for financial support, which is expected to sustain operations for at least the next 12 months.
Looking ahead, China Foods Holdings is focused on addressing the challenges posed by reduced demand for its products. The company is actively monitoring market conditions and implementing strategies such as supplier diversification and local sourcing to mitigate risks. Management remains optimistic about the potential for recovery and is committed to providing customized health and wellness solutions to its customers in China and Hong Kong.
About China Foods Holdings Ltd.
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