Xinlong Holding Group Co Ltd

Xinlong Holding released its 2026 interim report, with net profit attributable to the parent company showing a loss of 3.08 million yuan, an increase in loss of 2.24 million yuan compared with the same period last year. Total operating revenue was 210 million yuan, down 5.57 percent year on year. Net cash outflow from operating activities was 7.56 million yuan, an expansion of 1023.23 percent year on year. The latest asset-liability ratio was 17.44 percent, gross margin was 9.08 percent, and return on equity was negative 0.48 percent.

Xinlong Holdings announced that its controlled subsidiary, Hunan Xinlong Nonwoven Materials, has been stripped of its high-tech enterprise qualification for the years 2022 through 2024. The company stated that this matter does not materially affect Hunan Xinlong’s day-to-day operations, but it may involve tax adjustments. The company will actively communicate with tax authorities and handle tax-related matters in compliance with laws and regulations. Hunan Xinlong re-obtained its high-tech enterprise qualification on December 16, 2024.

Xinlong Holding disclosed its earnings forecast, expecting a net loss attributable to the parent of 3 million yuan in the first half of 2026, compared to a loss of 843,300 yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 9 million yuan, compared to a loss of 4.0895 million yuan in the same period last year. Basic earnings per share are expected to be negative 0.0056 yuan. The company stated that orders and revenue for its main business of new nonwoven materials increased steadily year-on-year, but due to global geopolitical conflicts and crude oil price fluctuations, the prices of upstream bulk raw materials such as polyester and viscose rose sharply, increasing production costs and squeezing product gross margins. At the same time, exchange rate fluctuations also adversely affected profitability, leading to an increase in losses in the first half of the year.