CN Healthy Food Tech Swings to a Third-Quarter Loss
Net revenues were $2.46 million in the three months ended September 30, 2026, down 68.9% from a year earlier, and the company recorded a $144,007 net loss.
CN Healthy Food Tech Group Corp. (UCFI), a Delaware holding company that sells high-end, grain-based health foods through PRC operating subsidiaries, reported a net loss of $144,007, or $0.003 a share, for the three months ended September 30, 2026, after net income of $3,344,966, or $0.07 a share, a year earlier.
Net revenues were $2,457,472, down 68.9% from $7,905,065 in the year-ago quarter, reversing a 17.1% year-over-year increase in the second quarter. The company said the third-quarter decline was primarily due to fewer large-scale dealer conferences and promotional activities. It said promotional policies that support its high-unit-price products are generally launched only at those conferences, so fewer events reduced the products’ price advantage and had a more noticeable impact on overall sales.
Gross profit fell to $1,632,940, or a 66.5% margin, from $5,567,500, or a 70.4% margin, a year earlier. Cost of revenue was $824,532. Operating income was $435,274, down 90.5% from $4,584,035.
Total operating expenses were $1,197,666, up 21.8% from $983,465, primarily due to higher consulting and audit expenses. The $2,045,000 amortization of 1,000,000 restricted common shares issued to Iron Horse officers for advisory services ended with the six-month service period on March 30, 2026 and was not present in the third quarter. Selling expenses were $366,726, down 27.7%, which the company said reflected a shift in the mix of selling and distribution activity. Research and development costs were $37,143.
Other income (expense), net swung to an expense of $280,928 from net other income of $139,183 a year earlier. Interest expense on three defaulted promissory notes was $131,316 in the quarter. Interest income was $82,480. Other expenses included $117,233 of donation costs for a Harbin charitable organization, an $81,144 gain on disposal of a right-of-use asset in Hengqin, and $147,193 of losses on disposal of furniture and fixtures in the Hengqin office.
Income before income taxes was $154,346. The provision for income tax was $298,353, and the effective tax rate was 193.3%, compared with 29.1% a year earlier. The company said the rate differed from the PRC statutory rate of 25.0% because of non-deductible items recorded at the U.S. parent, a full valuation allowance against U.S. deferred tax assets, and losses at certain subsidiaries, while PRC operating entities continued to generate taxable income.
Cash and cash equivalents were $21,524,338 as of September 30, 2026, down from $23,317,217 as of June 30, 2026. Of that total, $21,510,112 was held in the PRC and $14,226 in the United States. Advances from customers were $1,779,496. The company said it believes existing cash will be sufficient for PRC working capital and capital expenditure needs over at least the next twelve months.
Three promissory notes tied to the September 30, 2025 business combination, with aggregate outstanding principal of $3,473,190, remained in default as of September 30, 2026. No amendments, repayments, conversions, or lender enforcement actions occurred during the quarter. The company said it is in discussions with note holders to extend maturity dates rather than make immediate cash repayment, with no assurance of an agreement.
The Nasdaq trading halt imposed on October 1, 2025 remained in effect. On October 13, 2026, the company reported a Nasdaq Panel result of October 7, 2026. On October 20, 2026, Nasdaq announced the halt would continue pending additional information.
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