Sinoseal Holding Co Ltd

Sinoseal Holding released its 2026 interim report, with net profit attributable to the parent company at 135 million yuan, a decrease of 28.07% compared with the same period last year. Total operating revenue was 821 million yuan, down 4.25% year-on-year. Net cash inflow from operating activities was 83.32 million yuan, up 80.07% year-on-year. The company's latest gross margin was 39.54%, a decrease of 4.49 percentage points from the same period last year. Latest return on equity was 4.58%, down 2.15 percentage points year-on-year. Diluted earnings per share were 0.65 yuan, down 28.42% year-on-year.

Sinomach Precision Industry disclosed its 2026 semi-annual report, with operating revenue of 821 million yuan, down 4.25 percent year on year, and net profit attributable to shareholders of the listed company of 135 million yuan, a sharp decline of 28.07 percent year on year. After excluding the impact of share-based payment amortization from the 2024 restricted stock incentive plan, net profit attributable to the parent company was 150 million yuan, still down 25.99 percent year on year, while non-recurring net profit was 126 million yuan, down 27.63 percent year on year. The decline in performance was mainly due to a roughly 40 percent drop in international business revenue in the mechanical seal segment to about 50 million yuan, as well as intense market competition that led to lower gross margins in the mechanical seal incremental business and special valve segment, with the overall gross margin falling to 39.54 percent, down 4.49 percentage points year on year. Despite the sharp contraction in net profit, the company still plans to distribute a cash dividend of 5 yuan per 10 shares before tax, with an estimated total cash dividend of 103,967,368.5 yuan, accounting for 77.09 percent of first-half net profit attributable to the parent company.