Guangdong Jingyi Metal Co Ltd

Jingyi Shares released its 2026 interim report, with total operating revenue of 2.781 billion yuan and net profit attributable to the parent company of 3.9533 million yuan, a decrease of 63.59% compared with the same period last year. Net cash flow from operating activities was negative 249 million yuan, a decrease of 45.7991 million yuan from the same period last year. The company's latest asset-liability ratio was 43.51%, gross margin was 2.20%, ROE was 0.31%, and diluted earnings per share was 0.02 yuan. The number of shareholders was 20,600, and the top ten shareholders held 46.80% of the total share capital.

Jingyi Co. released its 2026 interim report on August 26. During the reporting period, operating revenue reached 2.781 billion yuan, up 16.81 percent year on year, but net profit attributable to the parent company was only 3.9533 million yuan, down 63.59 percent, and non-GAAP net profit was 2.0104 million yuan, down 76.22 percent. Net cash outflow from operating activities was 249 million yuan, widening 22.56 percent year on year, showing a situation of rising revenue without rising profit and a strained capital chain. Revenue from the company's core copper tube processing business was 2.23 billion yuan, accounting for more than 80 percent of total revenue and up 18.93 percent year on year, but gross margin was only 1.38 percent, down 0.65 percentage points. Revenue from copper rod processing was 512 million yuan, up 8.51 percent, with a gross margin of 3.50 percent. The decline in performance was mainly because high copper prices pushed up operating costs, which grew 17.76 percent, outpacing revenue and squeezing gross profit. At the same time, credit impairment losses were relatively large, and research and development spending was halved to 5.74 million yuan. Accounts receivable reached 1.036 billion yuan, and its share of total assets rose to 44.81 percent. Going forward, attention should be paid to copper price fluctuations, cash flow improvement, and collection risks.

Two wholly owned subsidiaries of Jingyi Shares have taken multiple companies and individuals from the Huahong Group to court over contract disputes, with the combined claims totaling approximately 156 million yuan. Subsidiary Jingyi Sales is seeking a ruling that Foshan Huahong and Qingyuan Huahong jointly pay 98.3237 million yuan in goods payments plus 5.4716 million yuan in additional charges, bringing the provisional claim to 104 million yuan. Another subsidiary, Jingyi New Materials, is asking the court to order Qingyuan Huahong to pay 43.5233 million yuan in goods payments plus 8.6688 million yuan in additional charges, with a provisional claim of 52.2078 million yuan. Jingyi Shares stated that the cases have been accepted by the Shunde District People's Court in Foshan but have not yet been heard, and the final judgment and enforcement remain uncertain, making it impossible to accurately assess the impact on company profits at this time. The company previously disclosed that as of the end of 2025, accounts receivable from the Huahong Group stood at about 170 million yuan, making it the second-largest debtor. In the first half of this year, the company expects net profit attributable to shareholders to decline by 59.7 to 67.03 percent year-on-year, mainly due to lower processing fees, cost pressures, and increased credit impairment losses.

Jingyi Shares disclosed an earnings forecast, expecting net profit attributable to the parent for the first half of 2026 to be between 3.58 million yuan and 4.38 million yuan, a year-on-year decline of 59.7% to 67.03%. Deducted non-recurring net profit is expected to be between 1.83 million yuan and 2.24 million yuan, a year-on-year decline of 73.52% to 78.33%, with basic earnings per share between 0.0143 yuan and 0.0175 yuan. The company stated that the decline in performance was mainly due to a year-on-year drop in gross margin caused by lower copper processing fees and cost pressures, as well as an increase in credit impairment losses due to slower-than-expected collections from some customers.