CN Healthy Food Tech Reports 17.1% Revenue Growth in Q2 2026, Faces Financial Challenges

CN Healthy Food Tech Group Corp. reported its financial results for the second quarter and first half of 2026, showing a net revenue of $8.73 million for the three months ending June 30, 2026, a 17.1% increase from $7.46 million in the same period of 2025. For the first half of 2026, revenue reached $14.56 million, up 21.6% from $11.98 million year-over-year. The company achieved a gross profit of $6.24 million for the second quarter, reflecting a 26.3% increase compared to $4.94 million in the prior year, while the gross profit for the first half was $10.61 million, a 51.6% rise from $6.99 million.

Despite the revenue growth, CN Healthy Food Tech's net income for the second quarter was $3.06 million, a modest increase of 4.7% from $2.92 million in the same quarter of 2025. However, the net income for the first half of 2026 decreased by 25.6% to $2.75 million from $3.70 million in the previous year. The decline in net income for the first half was attributed to increased operating expenses, particularly a $2.05 million amortization expense related to shares issued for management advisory services, which was not present in the comparative period.

Operationally, the company has been focusing on expanding its wholesale distribution network and launching new products, which contributed to the revenue growth. As of June 30, 2026, CN Healthy Food Tech reported total current assets of $27.52 million, down from $36.89 million at the end of 2025, primarily due to a decrease in cash and cash equivalents. The company’s cash reserves stood at $23.32 million, a decline from $33.01 million at the end of 2025. The decrease in cash was largely due to significant cash outflows from operating activities, which totaled $10.63 million for the first half of 2026.

The company is currently facing challenges related to its financial obligations, with three promissory notes totaling approximately $3.47 million in default as of June 30, 2026. These notes are linked to the company's business combination with Iron Horse Acquisitions Corp. in September 2025. The company is in discussions with noteholders to extend the maturity dates and address the defaults. Additionally, CN Healthy Food Tech is appealing a delisting determination from Nasdaq, which has halted trading of its securities since October 2025 due to regulatory compliance issues.

Looking ahead, CN Healthy Food Tech remains focused on leveraging its cash reserves to meet operational needs and is exploring financing options to address its outstanding debts. The company believes that its existing cash will be sufficient to cover working capital and capital expenditure needs for at least the next twelve months, although it acknowledges the potential need for additional capital resources in the future.