Shiyue Daotian (09676), a leader in the household food sector, has once again demonstrated robust performance to the market, achieving simultaneous growth in both revenue and profit while its multi-growth model continues to deliver. The company’s dividend yield exceeds 8%, further underscoring its financial strength.

On August 24, Shiyue Daotian released its interim financial results for the first half of 2026, reporting revenue of RMB 3.814 billion, a year-on-year increase of 24.5%, maintaining a double-digit growth trajectory. Profitability resilience remained evident, with gross profit reaching RMB 696 million, up 4.4% year-on-year, while profit for the period surged 35.4% to RMB 157 million. Gross margin and period profit margin stood at 18.25% and 4.12%, respectively, with adjusted net profit at approximately RMB 209 million and an adjusted net profit margin of 5.5%.

Driven by its dual-pillar strategy of "staples plus snacks," the company proactively adjusted its category revenue structure during the period to forge a diversified growth curve. Simultaneously, it continued to deepen its omni-channel ecosystem, expanding into new channels to achieve high-quality growth. Cash flow improved substantially during the period, with cash equivalents reaching RMB 1.022 billion as of June 2026, a 1.38-fold increase compared to the end of 2025.

During the first half, the company actively repurchased shares to bolster investor confidence, accumulating 11.4024 million shares. On July 17, it distributed a final dividend of RMB 0.32 per share for 2025, translating to a dividend yield exceeding 8%. Institutional capital has been forward-looking, as the company's share price has risen for four consecutive weeks, gaining over 15%.

Stable Performance Growth, Crafting a Diversified Growth Curve

A review of Shiyue Daotian's first-half report reveals that the "staples plus snacks" dual-wheel strategy has driven product mix adjustments, with multiple growth curves continually boosting performance. Revenue from the three major categories—"rice products," "coarse grains, beans, and other products," and "dried goods and other products"—reached RMB 2.694 billion, RMB 369 million, and RMB 350 million, respectively, representing year-on-year growth of 30.4%, 34.7%, and 21.0%. Their revenue contributions were 70.6%, 9.7%, and 9.2%, respectively.

Looking at a longer cycle, it is evident that from 2024 to 2026, all three categories maintained double-digit growth during the first-half periods, fully reflecting the notable success of the "staples plus snacks" strategic decision. Furthermore, the optimization of the company's revenue structure has continuously enhanced the resilience of profit growth.

In the first half, gross profit grew 4.4%, yet the compound annual growth rate of gross profit from 2024 to 2026 first-half periods was 25.2%, with gross margin improving by 1.31 percentage points, showing steady gains. By category, the three core growth engines saw stable-to-improving gross margins, with higher-margin businesses contributing more. Compared to the same period last year, the gross margin of the staple rice category remained stable at 16.6%, while margins for beans and other products, as well as dried goods and other products, saw significant increases—up 6.5 percentage points to 25.7% and 2.4 percentage points to 9.9%, respectively. Notably, the gross profit contribution from the high-margin beans and other products category rose to 13.62%. Additionally, the corn category posted a gross margin of 29.4%, with expectations of a rebound in corn prices from cyclical lows, which could further optimize the product structure.

Shiyue Daotian's high-quality growth stems not only from balanced development in revenue and profit but also from enhanced operational efficiency and healthy cash flow dynamics. During the period, inventory and receivables continued to improve, with spot collections increasing significantly. Inventory stood at RMB 1.363 billion, down RMB 724 million from the end of 2025, while receivables decreased by RMB 19 million. This propelled cash equivalents to RMB 1.022 billion, representing 26.8% of revenue.

Multi-Growth Model Continues to Unfold, Poised for Dual Gains in Performance and Valuation

Shiyue Daotian's long-term growth path is clear, focusing on both product and channel dimensions, leveraging multi-dimensional, effective strategies to build a multi-growth model. On the product front, the company deepens its focus on core categories like rice and corn, consistently developing annual single-product sales reaching RMB 100 million, such as Hanlu Qiuxiang Wuchang rice and Changli Xiang. It also innovates around key scenarios like light meals, health, and low-fat offerings, exemplified by products like seven-color brown rice rice balls with clean labels. The company continues to enrich its category matrix, advancing the layout of coarse grains, beans, and dried goods to complete its household food landscape.

On the channel front, the company deepens its omni-channel ecosystem, reinforcing the restructuring of "people, goods, and venues." Driven by a "traffic plus content" dual-wheel approach, it builds a closed loop of online and offline content, upgrading its capabilities from product delivery to scenario-based lifestyle services and creating a value loop of integrated full-domain marketing. Online, it leverages a full-domain multi-account matrix to continuously output high-quality scenario-based content; offline, it deeply engages with diverse sports event venues to reach consumers effectively. With combined efforts on both product and channel fronts, multiple growth curves are taking initial shape.

In the first half of 2026, on the product side, both core and non-core categories achieved double-digit growth. Revenue from non-core categories (coarse grains, beans, dried goods, and others) reached RMB 719 million, up 27.6% year-on-year, with revenue share rising to 18.9%. On the channel side, online self-operated channels, modern supermarket channels, and distribution networks all posted impressive growth of 41.6%, 42.8%, and 50.3%, respectively. The combined revenue share of these three high-growth channels increased to 50.17%.

In reality, through the establishment of multi-category growth poles, Shiyue Daotian has completed a strategic positioning upgrade from a kitchen food company to an innovator in the household food industry, diversifying risks associated with a single category. Meanwhile, by building multi-channel growth poles, the company has restructured "people, goods, and venues," enabling traffic and content to precisely reach users across both online and offline channels, continuously reducing customer acquisition costs while enhancing brand awareness and delivering product value.

This growth logic yields two significant impacts for the company: first, it drives long-term performance resilience, as the multi-growth model effectively withstands macro and micro risks; second, it creates strong competitive barriers, supporting sustained growth and a larger market share. Furthermore, the company has established eight modern production bases near China's seven core grain-producing regions, building a solid supply chain moat through "direct sourcing from origins and nearby processing."

In summary, Shiyue Daotian, propelled by the "staples plus snacks" dual-wheel strategy, has achieved high revenue growth, built a diversified growth curve, enhanced profitability, and generated robust cash flow recoveries, realizing high-quality growth. The company's joint efforts on product and channel fronts to create multiple growth poles not only diversify single risks but also, combined with its supply chain, forge formidable competitive barriers, providing a safety margin for long-term sustainable growth.

Additionally, Shiyue Daotian implements a long-termism development strategy. Beyond operations, it integrates ESG initiatives into its business, such as promoting rural revitalization through the "contract farming" model. The company also prioritizes shareholder returns, continuously improving shareholder returns through a "buyback plus dividend" model, with a dividend yield exceeding 8% and a market capitalization return rate well above market levels. As the multi-growth model continues to unfold, it is expected to drive valuation into an upward trajectory.