Tongxing Environmental Protection

Tongxing Technology released its 2026 interim report, with net profit attributable to the parent company of 18.18 million yuan, down 65.37% from the same period last year. Total operating revenue was 229 million yuan, down 43.33% year-on-year. Net cash inflow from operating activities was 75.11 million yuan, down 40.22% year-on-year. The company's latest asset-liability ratio was 25.39%, gross margin was 27.48%, return on equity was 1.06%, and diluted earnings per share was 0.14 yuan.

Tongxing Technology disclosed its 2026 interim report. The company achieved operating revenue of 229 million yuan, down 43.33 percent year on year, while net profit attributable to the parent company was only 18.1777 million yuan, tumbling 65.37 percent. The core reason for the decline was a cliff-like contraction in its traditional environmental engineering business. In the first half, flue gas treatment engineering and equipment revenue was 95.2288 million yuan, halving year on year with a drop of 61.65 percent, and its share of revenue fell sharply from 61.32 percent a year earlier to 41.50 percent. Catalyst products generated revenue of 132 million yuan, down 14.96 percent year on year. Although the CCUS business surged 228.04 percent year on year to 1.5154 million yuan, the base was too small to lift overall performance. The company is accelerating its layout in sodium-ion battery cathode materials. The first phase of a project with annual capacity of 20,000 tonnes has started construction, with total investment of about 500 million yuan, of which 34.6854 million yuan was invested in the first half. The company's accounts receivable balance reached 421 million yuan, accounting for 17.38 percent of total assets, while short-term borrowings climbed to 132 million yuan, an increase of 24.5 million yuan from the beginning of the period.

Tongxing Technology disclosed its earnings forecast, expecting attributable net profit for the first half of 2026 to be between 17 million and 20 million yuan, a year-on-year decline of 61.89% to 67.61%. Deducted non-recurring net profit is expected to be between 14 million and 19 million yuan, a year-on-year drop of 62.28% to 72.21%, with basic earnings per share of 0.13 yuan to 0.15 yuan. The company said the profit decline was mainly due to phased adjustments in downstream market demand, a fall in the scale of orders on hand, and delays in customer project construction and commissioning that slowed product delivery and revenue recognition, compounded by rigid operating cost outlays. Tongxing Technology's main businesses include flue gas treatment environmental engineering, catalyst research and production, carbon dioxide capture and resource utilization, and key materials and devices for sodium-ion batteries.