Fujian Longzhou Transportation Co Ltd

Longzhou Group released its 2026 interim report. Total operating revenue was 910 million yuan, down 18.24% year-on-year. Net loss attributable to the parent company was 92.01 million yuan, widening by 26.03 million yuan compared with the same period last year. Net cash inflow from operating activities was 17.14 million yuan, down 39.67% year-on-year. The company's asset-liability ratio rose to 88.85%, gross margin was 0.57%, return on equity was negative 19.06%, and diluted earnings per share was negative 0.16 yuan. The number of shareholders was 61,600, and the top ten shareholders held 32.08% of total share capital.

Longzhou Group disclosed an earnings forecast, expecting a net loss attributable to the parent of 90 million to 115 million yuan in the first half of 2026, compared with a loss of 65.9786 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 97 million to 125 million yuan, compared with a loss of 78.8628 million yuan a year earlier. The company said the change in performance was mainly due to the asphalt supply chain business being affected by tight local fiscal funds and slow start-up of engineering projects, with rigid demand recovery falling short of expectations. The company scaled back non-core and low-margin businesses, leading to a year-on-year decline in revenue for this segment but an increase in gross margin. In addition, the automobile passenger transport and station service business was impacted by changes in travel habits and diversion by high-speed rail and private cars, resulting in a year-on-year decrease in revenue and operating profit. The wholly-owned subsidiary Longyan Changfeng Special Purpose Vehicle Company Limited saw a reduction in delivery orders during the period, with revenue and operating profit also declining year-on-year.