Sinostone Guangdong Co Ltd

Zhongqi New Materials released its 2026 interim report, with net profit attributable to the parent company at negative 2.16 million yuan, swinging from profit to loss. Total operating revenue was 163 million yuan, down 17.25 percent from the same period last year. Net cash inflow from operating activities was 50.92 million yuan, up 2065.67 percent year on year. The company's latest asset-liability ratio was 13.89 percent, gross margin was 12.99 percent, and diluted earnings per share was negative 0.01 yuan.

Zhongqi New Materials disclosed its semi-annual report for 2026 on August 21. Net profit attributable to the parent company was a loss of 2.16 million yuan in the first half, compared with a profit of 2.52 million yuan in the same period last year. The company achieved total operating revenue of 163 million yuan, down 17.25 percent year on year. Net profit excluding non-recurring items was a loss of 8.71 million yuan, compared with a profit of 449,200 yuan a year earlier. Net cash flow from operating activities was 50.92 million yuan, up 2,065.67 percent year on year. During the reporting period, basic earnings per share were negative 0.01 yuan, and the weighted average return on equity was negative 0.11 percent. Based on the closing price on August 20, the company's price-to-earnings ratio was about negative 185.6 times, the price-to-book ratio was about 3.54 times, and the price-to-sales ratio was about 17.65 times.

Zhongqi New Materials disclosed its earnings forecast, expecting a net loss attributable to the parent of 2.6 million to 3.85 million yuan in the first half of 2026, compared with a profit of 2.523 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 8.8 million to 9.85 million yuan, compared with a profit of 449,200 yuan a year earlier. Basic earnings per share are projected at negative 0.01 to negative 0.02 yuan per share. The company said the earnings pressure is mainly due to changes in domestic and international market environments and the cultivation stage of new businesses. The domestic market faces structural adjustments, slowing downstream demand, and rising raw material costs, while the overseas market is dragged by exchange rate fluctuations, adjustments to export tax rebate policies, and intensifying competition. In addition, the high-purity quartz sand and Guangxi quartz silica crystal projects are still in the market expansion stage and have not yet achieved economies of scale. The company is actively promoting market development for related projects, accelerating customer certification, and strengthening cost and expense controls to cultivate new growth points.