Daqing Huake Co Ltd

Daqing Huake released its 2026 interim report. In the first half, net profit attributable to the parent company was 3.8 million yuan, down 58.1 percent year-on-year, while net profit attributable to the parent company excluding non-recurring items was a loss of 380,000 yuan, down 104.7 percent year-on-year. The company's operating revenue was 981 million yuan, up 2.2 percent year-on-year, but operating costs rose 3.98 percent year-on-year. The increase in costs outpaced revenue growth, squeezing gross profit margins in the main business. Among these, revenue from C5 fraction products fell 14.19 percent year-on-year, and operating costs for this product exceeded its operating revenue, resulting in negative gross profit. Although revenue from C9 fractions, petroleum resin, and polypropylene products grew, it was not enough to offset the losses from C5 products. Profit for the period was mainly supported by non-recurring gains and losses totaling 4.1767 million yuan, primarily from gains on disposal of non-current assets of 3.7257 million yuan and some government subsidies. Excluding these items, the main business itself was in a loss-making state. At the end of the reporting period, current liabilities were 89.8057 million yuan, a sharp increase from 46.9244 million yuan at the beginning of the period. This was mainly because accounts payable rose from 19.5253 million yuan at the beginning of the period to 42.7205 million yuan, other current liabilities rose from 1.2856 million yuan to 13.8609 million yuan, and accrued expenses increased significantly. Short-term operating liability pressure rose. The company had no short-term or long-term bank borrowings and no interest-bearing debt.

On the evening of July 10, several Northeast China-listed companies released their earnings forecasts for the first half of 2026. Among them, Time Wanheng and Fushun Special Steel expect losses, Daqing Huake expects a year-on-year decline in performance, while Quanyangquan expects growth. Time Wanheng expects net profit attributable to owners of the parent company for the half year to be between negative 14 million yuan and negative 11.5 million yuan, mainly due to a significant drop in gross margin for its lithium battery business. Fushun Special Steel expects net profit attributable to shareholders of the listed company to be between negative 270 million yuan and negative 230 million yuan, affected by intensified competition in the special steel market and weak demand in traditional sectors. Daqing Huake expects net profit attributable to shareholders of the listed company to be between 3.5 million yuan and 4.5 million yuan, a year-on-year decline of 61.39% to 50.35%, as fluctuations in international crude oil prices compressed gross margins. Quanyangquan expects net profit attributable to shareholders of the listed company to be 38.73 million yuan, a year-on-year increase of 65%, with sales volume growth in its core mineral water business reaching 33%.

Daqing Huake disclosed an earnings forecast, expecting net profit attributable to the parent company for the first half of 2026 to be between 3.5 million yuan and 4.5 million yuan, a year-on-year decline of 50.35% to 61.39%. The company stated that due to the impact of geopolitical conflicts in the Middle East, international crude oil prices fluctuated sharply, leading to increased volatility in raw material procurement costs and product sales prices. Downstream customers showed a clear wait-and-see sentiment, and there was a time mismatch between raw material and product price fluctuations, ultimately compressing gross margins and causing operating performance to decline year-on-year.