Shanghai Genki Fruits Co., Ltd. (Genki Shares), known as the “A-share top bakery stock” in Mainland China, announced a shift from profit to loss in the first half of 2026. They expect a maximum net loss attributable to the parent company of up to 71.4 million yuan (RMB) and a maximum net loss after deducting non-recurring gains and losses of up to 80.9 million yuan. In the past year, over 80,000 bakery shops have closed in Mainland China.
The disclosure made on July 11th regarding the “2026 Interim Performance Forecast” by Genki Shares anticipates a negative net profit attributable to the parent company ranging from -71.4 million yuan to -59.5 million yuan for the first half of 2026. This represents a loss compared to the 1.2345 million yuan net profit for the same period last year. The forecast also projects a negative net profit after deducting non-recurring gains and losses of -80.9 million yuan to -69 million yuan.
Data shows that Genki Shares transitioned from profit to loss in the first half of 2026 compared to the same period last year.
The company explained the reasons for the losses by stating, “Due to the slowdown in consumer market demand and intensified industry competition, the company’s revenue declined year-on-year, facing temporary pressure, while the rigidity costs such as salary adjustments for existing store staff, human resource arrangements for new store market layouts, and increased promotion expenses led to short-term losses in profit.” Additionally, they cited a decrease of approximately 25.25 million yuan in fair value change income from the fund provision.
According to the Changjiang Business News on July 13th, as of the end of 2025, Genki Shares owned 791 physical stores, an increase of 29 stores compared to the same period the previous year.
Despite an increase in the number of stores, revenue from offline stores has been declining. In 2025, Genki Shares’ offline stores generated revenue of 601 million yuan, a decrease of 28.41% year-on-year. In the first quarter of 2026, the company’s offline sales revenue reached 24.171 million yuan, a decrease of 60.13% year-on-year.
The losses incurred by Genki Shares reflect the current situation of Chinese bakery shops. As reported by the 21st Century Economic Herald on July 19th, Narrow Portal data as of July 15th, 2026, showed that in the past year, only 3,334 new bakery shops were opened, while a net decrease of 81,700 bakery shops resulted in over 80,000 bakery closures.
It was revealed that Cool Mochi (Shanghai) brand management limited company’s brand KUMO KUMO, which used to have long queues for two hours, now only maintains two stores in Beijing. Brands like Riker Grandpa, Uncle Thess, experiencing cycles of popularity, decline, and exit. Famous internet-famous chains like Kristin, Happy Cakes, and Momo Dessert Studio have also drastically downsized by closing stores.
However, the low-priced 9.9 yuan Loafer Cow Horse Bread has gained popularity for its high cost-effectiveness in major supermarkets and e-commerce platforms.
Over hundreds of netizens have expressed their views on Genki Shares’ losses. Many of them critique the expensive prices of bread, especially during an economic downturn when incomes are decreasing, prompting people to be more financially cautious in their daily expenses.
User “Frost” remarked, “Just like coffee, while above 40 yuan a cup is indeed good, it’s still viable to consume at 9.9 for everyday life with high cost-effectiveness.”
Tencent user yjnz02m stated, “Bread prices are getting more and more expensive now! Often three to fourty yuan for one! During an economic decline phase, it’s natural not to sustain! The taste is indeed better than supermarkets’, but when money is tight, everyone naturally gravitates towards cost-effectiveness as seen in all industries!”
As per Securities Star, as of the A-share closing on July 17, 2026, Genki Shares closed at 10.9 yuan per share, a decrease of 11.45% from 12.31 yuan per share the previous week.
This week, Genki Shares hit a high of 12.17 yuan per share on July 13. On July 17, the lowest trading price was 10.74 yuan per share. Genki Shares’ current total market value is 2.616 billion yuan.
Public information shows that Shanghai Genki Fruits Co., Ltd. was established in August 2002 and went public on the Shanghai Stock Exchange in December 2016. The company, headquartered in Shanghai, focuses on the research, production, and sales of cakes, mooncakes, and both Chinese and Western pastries, with operations covering over 120 prefecture-level cities.