Nasdaq Staff Moves to Delist CN Healthy Food Tech
Net income was $3.06 million, or $0.06 a share, after a $308,997 loss in the prior quarter.
CN Healthy Food Tech Group Corp. (UCFI), a Delaware holding company that sells grain-based health foods through wholesale distribution and live-stream sales, reported net income of $3,060,378, or $0.06 a share, for the three months ended June 30, 2026, reversing a $308,997 net loss in the immediately preceding quarter.
The swing followed the end of a six-month amortization of 1,000,000 restricted shares issued to Iron Horse officers for management advisory services, a charge that had run through general and administrative expenses until the service period closed on March 30, 2026. The company said no further amortization of those shares will be recorded.
Revenue, net was $8,733,904, up 17.1% from $7,460,022 a year earlier. The increase reflected continued expansion of the wholesale distribution network and the launch of new salable products. Year-over-year growth slowed from the 20.8% rise recorded in the three months ended March 31, 2026.
Gross profit increased 26.3% to $6,241,315 as cost of revenue fell 1.0% to $2,492,589. The margin improvement reflected the start of operations at the company’s own production base in Beikang Industrial Park, Heilongjiang Province, in October 2025, with core products predominantly self-produced rather than sourced from third-party OEM partners, and operating leverage on relatively fixed production-related costs as the wholesale network expanded.
Operating income rose 32.0% to $5,115,026. Total operating expenses were $1,126,289, up 5.3%, primarily due to higher consulting and audit expenses. Selling expenses decreased $108,466, or 24.9%, primarily reflecting a shift in the mix of selling and distribution activity. Research and development expenses were $35,550.
Other income (expense), net swung to a $549,040 expense from $154,248 of net other income a year earlier. The change was mainly attributable to recognition of a RMB 3,000,000 CSRC administrative penalty, equivalent to $436,961, and $335,908 of default interest on three promissory notes that have been in default since the fourth quarter of 2025. The default interest accrues at 15.0% per annum; no portion was paid in cash in the six months ended June 30, 2026. Interest income was $24,636.
The effective tax rate was 33.0% for the quarter, compared with 27.5% a year earlier. The rate differed from the PRC statutory 25.0% because of non-deductible U.S.-parent items, including shares-issued-for-services amortization and default interest, and a full valuation allowance against U.S. deferred tax assets.
Cash and cash equivalents were $23,317,217 as of June 30, 2026, down from $29,690,865 as of March 31, 2026. Approximately $23,302,900 was held in the PRC and $14,317 in the United States. Existing cash would be sufficient for working capital and capital expenditure needs of the PRC operating subsidiaries over at least the next twelve months.
Advances from customers fell to $2,499,825 from $11,461,841 at March 31, as customer prepayments received in prior periods were fulfilled and recognized as revenue. Inventories increased to $2,206,892 and accounts payable rose to $1,853,808.
Three promissory notes issued in connection with the September 30, 2025 business combination — the September 2025 Note Payable, the Assumed Note Payable, and the Sponsor Note Payable, with aggregate outstanding principal of $3,473,190 as of June 30, 2026 — remained in default. They are obligations of the U.S. holding company rather than the PRC operating subsidiaries. The company is in discussions with the note holders to extend maturity dates rather than make immediate cash repayment, with no assurance of favorable terms.
On July 16, 2026, the company received a Nasdaq Listing Qualifications Staff determination to delist its common stock and warrants from the Nasdaq Capital Market. It requested an appeal, which would stay suspension pending a Panel decision, although the trading halt imposed on October 1, 2025 in connection with the CSRC’s review of the U.S. listing remained in effect. CSRC administrative penalties of RMB 3,000,000 on Heilongjiang Zhongneng Liangke Agricultural Technology Co., Ltd. and RMB 1,500,000 on Chairman and Chief Executive Officer Zhenjun Jiang were paid on May 24, 2026.