Zoje Resources Investment Co Ltd

Zhongjie Resources released its 2026 interim report. Total operating revenue was 419 million yuan, down 1.17% year-on-year. Net profit attributable to the parent company was a loss of 1.4936 million yuan, swinging from profit to loss year-on-year, a decline of 110.96%. Net cash inflow from operating activities was 56.5011 million yuan, up year-on-year, marking a second consecutive year of growth. The company's asset-liability ratio was 31.70%, gross margin was 17.17%, return on equity was negative 0.24%, and diluted earnings per share was negative 0.00 yuan. Total asset turnover was 0.46 times, and inventory turnover was 1.36 times. The number of shareholders was 34,700, and the top ten shareholders held 26.09% of total share capital.

Zhongjie Resources announced its 2026 semi-annual report on August 27. In the first half of the year, it achieved total operating revenue of 419 million yuan, down 1.17 percent year on year. Net profit attributable to the parent company was a loss of 1.4936 million yuan, compared with a profit of 13.6325 million yuan in the same period last year. Net profit after deducting non-recurring items was a loss of 1.6695 million yuan, compared with a profit of 12.5006 million yuan a year earlier. Net cash flow from operating activities was 56.5011 million yuan, compared with negative 1.9623 million yuan in the prior-year period. Basic earnings per share were negative 0.0012 yuan, and the weighted average return on net assets was negative 0.24 percent. The company is mainly engaged in the research, development, production and sales of mid-range and high-end industrial sewing machinery.

Zhongjie Resources disclosed its earnings forecast, expecting a net loss attributable to the parent company of 1.14 million to 2.28 million yuan in the first half of 2026, compared with a profit of 13.6325 million yuan in the same period last year. The company expects to achieve operating revenue of 400 million to 440 million yuan in the same period, with a net loss after deducting non-recurring items of 1.24 million to 2.48 million yuan. The shift from profit to loss is mainly due to weak demand in the overseas sewing equipment market, which led to a decline in export revenue, while the depreciation of the US dollar exchange rate caused exchange losses and financial expenses increased year-on-year.