Guangdong Xiongsu Technology Group Co Ltd

Xiongsu Technology released its 2026 interim report. The company's total operating revenue was 405 million yuan, down 14.33% from the same period last year, and net profit attributable to the parent was 14.9879 million yuan. Net cash flow from operating activities was negative 25.6876 million yuan. The asset-liability ratio was 11.39%, gross margin was 13.93%, return on equity was 0.77%, and diluted earnings per share was 0.04 yuan. Total asset turnover was 0.18 times and inventory turnover was 1.74 times, both lower than the same period last year. The company had 15,500 shareholders, and the top ten shareholders held 58.12% of the total share capital.

Guangdong Xiongsu Technology Group announced that its wholly owned subsidiaries Henan Xiongsu Industrial and Yunnan Xiongsu Technology Development have suspended production due to ongoing losses. Henan Xiongsu will retain business activities other than manufacturing, while Yunnan Xiongsu has ceased operations entirely. The company's main business is plastic piping, with six production bases nationwide and annual capacity of nearly 500,000 tonnes. However, affected by property market controls, slowing infrastructure investment, and intensifying industry competition, the two subsidiaries have been unable to fully utilise their capacity. In 2025, Henan Xiongsu posted a net loss of 28.03 million yuan, and Yunnan Xiongsu lost 29.59 million yuan. In the first half of 2026, the two lost 9.3 million yuan and 9.37 million yuan respectively. The company said the suspensions will help prevent losses from widening, focus on core business layout, and optimise resource allocation. It will decide later whether to resume production or monetise the assets depending on industry and market conditions. The suspensions are expected to have some impact on 2026 operating figures, while the company and its other subsidiaries continue normal production and operations.