Sinofibers Technology Co Ltd

Sinofibers Technology released its 2026 interim report on August 26. Affected by the phased adjustment of major customers' procurement pace, the company's performance fell sharply and slipped into a loss. During the reporting period, the company achieved operating revenue of 179 million yuan, a year-on-year decrease of 61.36%; net profit attributable to the parent company was negative 49 million yuan, turning from profit to loss year-on-year; non-GAAP net profit was negative 58 million yuan, also turning from profit to loss year-on-year. Net cash flow from operating activities was negative 18 million yuan, shifting from a net inflow in the same period last year to a net outflow. The company's main business is high-performance carbon fiber and fabrics, with products mainly used in the aerospace field. During the reporting period, this business achieved operating revenue of 179 million yuan, accounting for 100% of total revenue, with a gross margin of 27.02%, down 36.84 percentage points from the same period last year. The decline in performance was mainly due to a phased fall in downstream customer demand and a significant reduction in product sales volume. Although operating costs fell 21.98% year-on-year, the cost decline was far smaller than the revenue decline, severely squeezing gross profit margins. In addition, the company continued to increase R&D investment, with R&D expenses reaching 83 million yuan, up 113.99% year-on-year. At the same time, due to share-based payment expenses recognized for the employee stock ownership plan and other factors, administrative expenses rose 72.91% year-on-year, further aggravating the loss. As a core supplier of high-end carbon fiber in China's aerospace field, the company has advantages in large-scale wet spinning production and deep customization services. The third-phase project has been completed, and the fourth-phase project is progressing steadily, with ample capacity reserves. However, it faces risks such as relatively concentrated customers, declining product prices, and capacity absorption.

Zhongji Innolight has built a 5,000-ton capacity for high-end aerospace carbon fiber and is accelerating the mass production of domestic high-end materials. General Manager Li Hui explained that the company focuses on the technically challenging wet process, which produces carbon fiber with natural surface grooves that significantly enhance composite impact resistance, meeting the safety requirements of aerospace structural components. The company has already achieved breakthroughs in key T1100-level technologies on both wet and dry-jet wet spinning routes, reaching internationally leading levels and supporting the domestic substitution of materials for the country's main aircraft models. However, Li Hui also acknowledged that domestic T1100-series high-end carbon fiber still lags behind imports such as those from Japan's Toray in terms of quality stability and consistency. Stable domestic supply capacity for aerospace-grade T800 and above accounts for less than 10%, the mass production stability of high-end products is insufficient, and the global market share is less than 1%.

Zhongjian Technology disclosed an earnings forecast, expecting a net loss attributable to the parent of 38 million to 71 million yuan in the first half of 2026, compared with a profit of 208 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 46 million to 79 million yuan, versus a profit of 198 million yuan a year earlier. The company said the change in performance was mainly due to a phased adjustment in procurement plans by major customers, leading to a reduction in shipments, with recognized revenue expected to drop by 55 to 65 percent. At the same time, prices of some products were lowered, and inventory that is not easily stored long-term was disposed of, causing operating losses, along with provisions for inventory write-downs. Zhongjian Technology focuses on independent innovation and engineering application of high-performance carbon fiber and its structural materials and related functional materials.