Hongbo Co Ltd

Hongbo Co. released its 2026 interim report, with net profit attributable to the parent company at a loss of 51.48 million yuan, swinging from profit to loss. Total operating revenue was 187 million yuan, down 76.39% from the same period last year. Net cash flow from operating activities was a negative 46.78 million yuan. The latest debt-to-asset ratio was 39.78%, gross margin was 19.13%, and return on equity was negative 4.90%.

Hongbo Shares disclosed an earnings forecast, expecting a net loss attributable to the parent of 42.4 million to 62.8 million yuan in the first half of 2026, compared with a profit of 42.2591 million yuan in the same period last year. The company expects operating revenue of 164 million to 200 million yuan for the period, a net loss after deducting non-recurring items of 51.8 million to 77.4 million yuan, and basic earnings per share between negative 0.0859 yuan and negative 0.1272 yuan. The swing from profit to loss was mainly due to intensified competition in the printing business, which led to lower revenue and overall gross margins. At the same time, the high base formed in the same period last year by the revenue and profit recognized from the acceptance of a major computing power project by its subsidiary Beijing Yingbo Digital Technology Co., Ltd. widened the year-on-year decline.