China Western Power Industrial Co Ltd

ST Huaxi released its 2026 interim report, with net profit attributable to the parent swinging from profit to a loss of 57.1 million yuan. The company's total operating revenue was 473 million yuan, down 53.74 percent year on year. Net cash inflow from operating activities was 75.94 million yuan. The asset-liability ratio rose to 99.64 percent, gross margin was 32.23 percent, and diluted earnings per share was negative 0.05 yuan.

ST Huaxi has lost its second trial in a financial leasing contract dispute, which is expected to reduce the company's current period profit by 26.656 million yuan. The Intermediate People's Court of Yingtan City, Jiangxi Province, rejected the company's appeal and upheld the first-instance judgment. The company must pay a repurchase price of 31.3601 million yuan to Guixi Industrial Control Jincheng Financial Leasing Company, and bear the second-instance case acceptance fee of 198,600 yuan. The company has been loss-making for six consecutive years, with net assets at the end of 2025 standing at negative 58.0651 million yuan. Its stock has been placed under delisting risk warning. If net assets remain negative at the end of 2026, mandatory delisting will be triggered. In the first half of 2026, the company expects operating revenue of only 400 million yuan, a year-on-year decline of over 60 percent, with a net loss attributable to the parent company of 40 million yuan.

*ST Huaxi disclosed its earnings forecast, expecting a net loss attributable to the parent company of 40 million yuan in the first half of 2026, compared with a profit of 36.1722 million yuan in the same period last year. The company's operating revenue for the period is expected to be 400 million yuan, with a non-recurring net loss of 40 million yuan, and basic earnings per share of negative 0.0339 yuan. The change in performance is mainly due to the company's stock being subject to delisting risk warning and tight capital, leading to a decrease in new orders, slow progress on some projects, a decline in revenue scale, as well as large interest-bearing debt and high financial expenses.